Why Income Planning Matters for Your Secure Retirement
I recently read an article in Financial Advisor Magazine about the failure of financial advisors to provide specialized advice and planning around the transition from “work to work optional” as we like to say at our firm.
At Fish and Associates, we understand that retirement planning is about more than just growing your assets—it’s about ensuring you have a steady, reliable income to support your lifestyle for your lifetime. Income planning, unfortunately, is often overlooked in favor of accumulation. But as many of our clients over 50 have pointed out, this planning is essential to feeling financially secure. Our firm has focused on income planning for over 30 years.
According to a recent Alliance 2024 Study, there is a notable gap between what advisors discuss and what clients understand. For instance, 62% of advisors say they talk about income planning, but only 27% of clients remember those conversations. At Fish and Associates, we’re committed to closing that gap and making income planning a core part of our conversations with clients. We don't just focus on growing your portfolio—we ensure you know how and when you can start drawing income in a tax-efficient, sustainable way.
Why You Need an Income Plan
The study found that nearly half of consumers close to retirement aren’t sure if their savings will last throughout their lifetime. This uncertainty can cause unnecessary anxiety. In fact, 96% of investors said that protecting their retirement income is extremely important, yet not all feel confident their plan covers this crucial aspect.
This is where income planning steps in. Rather than focusing solely on accumulating assets, we work with out clients to ensure that their savings and investments will support their retirement. If there are going to be gaps or shortages, it is important to have that information, and have the ability to explore any options to get where youn need to be, or determine what adjustments are acceptable. Some important considerations we include in our planning process:
- Protected Income: This includes sources like Social Security, pensions, and annuities. While 98% of advisors claim to discuss these with their clients, only 69% of clients recall having these discussions. At Fish and Associates, we ensure these critical conversations take place, giving you a clear understanding of all your income sources.
- Timing Withdrawals: Deciding when to start withdrawing from retirement accounts can have a huge impact on how long your money lasts. While many advisors discuss this, only 66% of clients report that they’ve had this conversation. We make sure it’s a central part of your financial plan.
- Tax Efficiency: Tax considerations are key to income planning. With careful planning, you can minimize the tax impact on your retirement income, but only 64% of clients report having these discussions with their advisors. We prioritize tax-efficient strategies to ensure you keep more of what you’ve earned.
Our Commitment to Your Retirement Security
Income planning is about more than just managing investments—it's about creating a strategy that ensures your financial well-being for years to come. At Fish and Associates, we’re here to help you make the transition from saving for retirement to securing your retirement, based on your individual obnjectives. Together, we’ll work to build a plan that makes sure your income lasts as long as you do.
Contact us today to start planning for the secure retirement you deserve. We are happy to do a phone consultation to see if we are a good fit for you!! Check out our website, and we are here if you'd like to have a conversation about your future!
www.fishandassociates.com