Don Dirren Discusses How to Develop an Income Plan in Retirement
A Retirement Income Plan is Easy with the Help of a Trusted Advisor Like Don Dirren
Maintaining a healthy income in retirement can seem like a daunting task. But with a little direction from a licensed financial advisor like Don Dirren, setting up the right plan can be simple. All you need to do is follow a few simple steps with the help of a trusted advisor. Income planning is a critical step in retirement planning as it will set you up for financial success for years to come. Don Dirren explains that without a solid income plan it’s difficult to get a good idea of just how far your money will stretch.
The first step Don Dirren will walk you through is making a guess at how long you (and your spouse if applicable) might live. Good financial advisors like Don Dirren can help you pinpoint the right number of years for your situation. It doesn’t need to be exact, and planning longer is better.
Next you’ll need to list all your fixed sources of retirement income. This should include any income you can count on coming in every month, like social security, pensions, annuities, etc. If you have other earnings include those too. Don Dirren or another financial advisor will make sure you capture everything so that you have an accurate view of your true monthly income.
Once you’ve calculated the income you can count on each month it’s time to calculate expenses. If you have any expenses that will disappear after a certain number of years, such as a mortgage that will be paid off in five years, make sure you note when the expense will no longer exist. A tricky but crucial aspect of calculating expenses is calculating taxes, Don Dirren explains. Taxes can take a big bite out of your budget and can vary greatly depending on the types of income you receive. That’s why it’s best to work with a licensed financial planner to make sure you have a reasonable ballpark estimate of your taxes for each year.
If you end up with a gap between your calculated expenses and projected income, Don Dirren explains that you’ll need a financial planner to help you understand how to draw from savings and retirement accounts to make up the difference without draining your nest egg.
You might have noticed that creating a retirement income plan is not all that different from putting together a typical budget. However expert advice from a financial planner like Don Dirren can help you understand which types of income and expenses to include, how many years you need to plan into the future, and other intricacies that make a retirement income plan unique. With a solid plan from a trusted expert like Don Dirren, you can rest easy knowing exactly how you’ll fund your retirement lifestyle.