• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

Income Allocation

With so many options available, we must establish the criteria that we will use for creating our retirement income. How much income will come from RMDs, how much from our personal savings? Should you buy an immediate annuity, and if so, what type? These are all decisions that you will have to make on your own. Since every one reading this book is different, there is no standard answer to give. It is my opinion that prudent individuals covers all of their bases and engages in what I call “income allocation.”

With income allocation, you assign certain assets to specific income streams to ensure balance and flexibility. In general, we look at life expectancy, risk tolerance, and liquidity needs and create a recommendation for how much of our income should be insured and how much should be left to be taken through systematic withdrawals to reach the overall income goals. To help you better understand this concept, we going to will look at the ways you can structure your income plan at retirement in Chapter 12.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint