Greetings! I trust that this will find you well and enjoying life.
If you’re like me you have a huge sense of relief that at least for the time being we’re not taking military action against Syria. The markets certainly felt the same last week based on gains experienced.
Furthering our three part series on the decision making process we encourage clients to use in managing finances, I want to focus this weeks’ remarks on the effect that a financial decision can have on income.
I heard someone say once that “in retirement wealth is equal to income.” Makes sense if you think about it, as solid income provides the liberty and opportunity to experience and pursue those things in retirement which we value and that bring us pleasure. Family, travel, hobbies and recreation are but a few. Therefore maximizing assets to provide the necessary cash flow is critical. So when we make any financial decision, it’s important to examine how it will effect income.
Here are some of the questions you will want answers to in putting your retirement income plan together. Will the provider meet my objective and need? Is the source consistent and reliable? Is it safe and does it avoid volatility? Is the yield or distribution competitive? Is it tax efficient based on my tax situation? Can I stop or suspend the income temporarily? Am I comfortable with the mechanics and inner workings of the investment? Does it complement other investments that I own and my overall retirement asset plan? An in depth analysis of your personal situation may uncover other issues to consider, but these questions are a good place to start.
Taking the time and energy necessary to find out and thoroughly examine all of the critical facts surrounding the decision are very much in your best interest. Call us if you have questions about this information or would like input on your retirement planning