Financial Independence

At the core of every financial plan is the “Income Plan”, which we call The Smart Financial Independence Blueprint ˢᵐ.  Income planning is the process of converting the earnings and the assets you have today, into investments that will provide the income you want for tomorrow and the rest of your life.

What most people refer to as “retirement”, we prefer to call it your Financial Independence, that day when your assets provide the income you need to maintain your lifestyle, and work is no longer a requirement. It’s an option!

Income Planning is one of the 4 Essential Elements of The 4×4 Financial Independence Plan ˢᵐ.  We will take a deep-dive into your finances to show you EVERYTHING you will need to know about planning for your retirement.  We will discuss your income and your expenses, as well as your assets, your liabilities, and your tax situation.

While not everyone needs a full and comprehensive financial plan, without exception, everyone must have an income plan to make the most of the income and assets they have today, so they can begin to live the life they dream of tomorrow.

Benefits

Times Have Changed, Your Income Plan Should Too

Just two generations ago, retirement planning used to be relatively simple; Grampa worked for one company his entire life and retired with a pension that guaranteed a lifetime of income for both he and his wife.  With Social Security benefits, modest savings and, likely a free & clear home, they had plenty of income to cover their expenses over their lifetimes.  To make things even easier grandpa, unfortunately, died after only a few years into his retirement, leaving gramma with the same guaranteed lifetime income, lower expenses, and maybe a small death benefit life insurance as well.  Finally, combine all this with a stock market that had generally grown in value since the 1950’s and a bond market yielding very high returns, when gramma passed, she likely left a nice inheritance to her children and grandchildren. 

Fast forward one generation and both mom and pop have likely worked many jobs.  Maybe, they have even changed careers as well during their working years as well.  At retirement, it is likely that neither of them will receive a pension.  If they do, it likely will not be substantial, and they may be at risk of losing some or all of it during their lifetimes.  They will likely have a mortgage.  Even with a good amount of savings both inside and outside their 401(k), those savings accounts may not provide an ongoing source of lifetime income for both them.  Mom and pop are also living longer and more active lives in their retirement which, of course, requires even more money.  The costs of healthcare are increasing.  Taxes are rising.  The stock market is very volatile, and the bond market is paying out the lowest rates seen in history.  Then, if either mom or dad suffer a serious health issue like a stroke, dementia, or Alzheimer’s, they could find their lifetime of assets depleted in a few short months.