Part 2: Planning your Epic Retirement - Most Common Forms of Income

Ready To Retire!

Whenever you consider what your life will look like in retirement, I’m sure travel, time with family, and other joyous freedoms come to mind. It’s important to consider, however, where your cash flow will come from during those retirement years.

In the last episode, I encouraged you to dream. We walked through outlining what you’ll do with your time beyond scheduling a few vacations so that when you retire, you can fully embrace the freedom you’ve worked so hard to earn

Click here to Download Your FREE “3 Steps” to Plan an Epic Retirement Worksheet: https://bit.ly/NavigateWeeklyNewsletter

What’s included: 3 Steps to Planning an EPIC Retirement

Step 1: How will You Spend Your Time?

Step 2: Identify Your Income & Expenses

Step 3: Putting it all Together

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Connect with Danette Lowe, CFP®

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Visit Our Website: https://www.TruNorthWealth.com

Episode Summary:

Here’s the outline of your 3 steps to planning an epic retirement:

Part 1- What are you going to do with your time in retirement? (Episode 2)

Part 2- What are your sources of income in retirement? (This Episode!)

Part 3- Making it all work (Next Episode)

In this episode, we’ll explore the 10 most common sources of income in retirement plus a few less common resources you may not have considered.

#1: Social Security - If you’re working or self-employed and meet the minimum criteria, you may be eligible for social security benefits.

#2: Pension Plans/Per Plans/CalPers - If you’re eligible for Pers, then your social security payment will be reduced. You can’t collect the full amount of both the pension and social security benefits, so it’s important to explore what you’ll receive from each source.

#3: Defined Contribution Plans - Most companies today are offering this these as 401Ks. These “retirement plans” often offer employer match eligibility and the chance to invest in the stock market.

#4: Individual Retirement Plans - Often referred to as Traditional or Roth IRAs, contributions to these types of accounts get deducted for your income during the year in which you contribute.

#5: Regular After Tax Savings - Any savings you’ve accumulated outside of your pension, defined contribution plans, or other retirement-specific accounts. Savings can be held in high interest savings accounts, brokerage accounts, or other liquid funds.

#6: Sale of Business - If you’re a business owner during your working years, the business can represent a part of your net worth. As you approach retirement, you can choose to sell your business for a lump sum and remain as a paid consultant or board member.

#7: Rental Income - Whether you choose to buy rental properties or you inherit family property, rental income can flow in from long term rentals or short term options like AirBnB or Vrbo.

#8: Equity in Your Home - In time, it’s likely your personal residence has appreciated in value, building your equity significantly. You may choose to sell and cash in on that equity or downsize and rent out your home at the current market rates, creating excellent income for yourself. In a pinch, home equity loans can create cash flow too!

#9: Side Hustle - While you’ve retired from your full time job, maintaining some form of work during your retirement years has great mental, physical, and social benefits in addition to some cash!

#10: Receiving an Inheritance- This can be tough because most of us aren’t sure how much or if our elderly relatives are leaving us any money. In addition, there’s no timeline on when we’ll receive that pay out. Still, it can be a source of income in retirement.

Now that you’re well versed on the 10 most common income resources, there are some less common resources such as the lottery, royalties and life insurance.

After you’ve listened to this episode, take a few moments to make a list of your potential sources of income in retirement.

Then, consider what you might be able to do now to expand that list of sources/values.

In this episode, you’ll also hear:

● On a yearly basis, access your statements and evaluate how much you’re to expect

● Why I don’t advise 100% of your retirement savings be in tax deferred plans

● Pro tip regarding receiving proceeds from a life insurance policy

Must-listen moments:

[00:08:46] Payout options: Elect to receive a lump sum or a monthly benefit amount

[00:10:24] Two pro tips for managing your 401K employer sponsored retirement plan

[00:27:55] Over half a million people are over the age 100 and this trend continues to grow

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About Danette: https://tinyurl.com/28pg94tt/

Professional Journey- As the President and a CERTIFIED FINANCIAL PLANNER™ professional at TruNorth Wealth Management, LLC, I've found my calling in helping pre-retirees confidently navigate the crucial decision of retirement. Our team is dedicated to guiding family-oriented couples from being net savers to net spenders. We invite you to join our extended family and experience the TruNorth Wealth difference.

Danette Lowe, CFP®

Founder – Wealth Advisor

TruNorth Wealth Management, LLC

123 W. Nye Lane, Suite 520, Carson City, NV 89706

Connect with Danette @ https://linktr.ee/trunorthwealth

This podcast is for informational purposes only. The situations used herein do not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted for your specific situation. Neither Commonwealth Financial Network nor your representative provides tax advice.

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser.