Accumulation Phase vs. Consumption Phase
Having a plan for income withdrawals in retirement may be one of the most important things that you do when preparing for your retirement. The question that folks usually ask prior to retirement is; “How much can I take out and have my retirement last?” The question that folks usually ask while in retirement is; “Am I taking out too much?” Income planning and income review is something that needs to be done regularly in order to see where you are and also to identify any areas where a change may need to be made.
Depending on your particular situation we like to use the Income for Life Model. The Income for Life Model is a very easy to understand guide to income planning and also has the flexibility to be updated regularly as needed.
Not having a plan can be unnerving and unsettling. Things such as market volatility, inflation, and the preservation of your assets are magnified even greater when you are in retirement rather than when you were bringing a paycheck home every week. Trying economic conditions can lead to making decisions that seem right at the time but may prove costly to your long term goals.
Check out Chris’ Site. Click here and you will be able to find out more about the Income for Life Model and also watch a short presentation on income planning.
Income planning does not have a one size fits all solution. What works for a co-worker, neighbor, or family friend, may not work for you. Do you want your assets to last for your life only or do you want to leave a legacy for your children or maybe even a charity? Take a moment and educate yourself on the Income for Life plan and how it may help you reach your goals!
