Take a second to picture what you want retirement to look like. Are you sipping a margarita at the beach? Relaxing at a new home in Florida? Taking trips to visit your grandchildren? Traveling around the world?
Whatever it is you want to do to get the most out of retirement, income is going to be an important part of it. By building streams of income, you can protect yourself against fluctuations in benefits, inflation, the stock market, and other uncertainties.
Retirement Income Streams: What and Why
Retirement income streams are forms of income you will rely on to supplement any pensions or social security benefits you will receive in retirement. A stream of income could be something as simple as interest on a savings account to rental property income to monthly dividends paid out from an investment account.
Retirement income streams should allow you to cover your needs and wants without being forced to work or find additional methods of earning money after retiring from your primary job.
What to Know Before Starting to Build Retirement Streams of Income
It’s never too early to start planning for retirement, but before you invest your time and capital in retirement, there are some things you should know first:
- How much you absolutely need on a monthly basis in retirement.
- Create a realistic spending plan (budget)
- Write down expenses and potential expenses in the following categories:
- Have To’s -- the things you cannot live without.
- Want To’s -- the things you really want to be able to afford in retirement.
- Get To’s -- the things you will be able to do if you exceed your financial needs and goals (charitable giving, legacy planning, etc.).
- Understand how inflation and taxation will impact your available income and income streams throughout retirement.
- It takes a team. Surround yourself with experts who excel in creating retirement income streams.
Financial advisors, like those at Blooming Tree Wealth Management, can help you learn everything you need to know before creating the retirement plan that will ensure your later years will be your greatest. Contact us today or continue reading below!
How BTWM Approaches Creating Retirement Streams of Income
Blooming Tree Wealth Management takes a tailored approach to creating retirement streams of income for clients. There are unique strategies, securities, and plans that may fit some clients better than others, and every client has their own needs and goals, which is why a one-size-fits-all approach is not your best option.
BTWM starts with fully understanding your needs before creating a custom plan. We call this understanding your “cash flow story.” Depending on what you currently have and will have in terms of streams of income when you retire, we shape your plan and put your capital to work to fill in the rest of your needs and wants.
Generally speaking, our approach is to minimize volatility (risk) to achieve your family’s financial goals.
How to Get Started Creating Retirement Streams of Income
We all have blind spots. A good financial advisor knows what you don’t know and what you need to know in order to accomplish your retirement goals. An advisor can help you understand the difference between how much of your income stream comes from principal, appreciation, and interest, which is important to know when supplementing pensions and social security benefits.
Although you can create your own retirement streams of income, we highly recommend that you surround yourself with others who are trying to accomplish what you are, and consult with professionals, whether the team here at BTWM or other trusted financial advisors.
Contact Blooming Tree Wealth Management today to schedule your free Goals Meeting where we will learn what you want to accomplish as retirement nears, what it will take to get you there, and how we may be able to help you achieve your goals.
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