Enjoying It | Custom Financial Design



    Enjoying It . . . Through Income Distribution Planning

    Income distribution planning is the process of evaluating your current financial standing and creating a strategy to help ensure that you pursue your desired retirement lifestyle. It is about matching goals with financial realities, and the focus is generally on providing a lifetime of income after your last work paycheck.

    Because an individual’s retirement years can span decades, income planning in retirement generally dominates other financial goals. A successful retirement plan put in place during your working years should address ways to help maximize growth and prepare for tax-efficient distributions.

    Planning for income requires us to devise simultaneously a plan for growth and income. Growth must be a part of a distribution plan as income has to keep pace with inflation to protect your retirement lifestyle and the risk of running out of money. It also involves risk management to hedge against the possibility of untimely incapacity or death.

    Other subjects, such as IRA or 401(k) rollovers, employer-sponsored plans, and executive compensation, are also appropriate for income planning. A stable source of income is a critical component of enjoying retirement. A good plan should coordinate with insurance, business, estate, and taxation issues.