It’s important to identify the myths of income planning, which are roadblocks to your financial success.
Myth: “Social Security starts at age 62!”
The Truth: That’s true – now. But that doesn't mean the federal government won’t one day raise the minimum age – or reduce benefits for people at specific income levels. It’s also important to remember that you don’t have to take Social Security benefits as soon as you’re eligible. Under the current law, if you elect to wait until age 70, you will earn a much higher monthly payout.
Myth: “I’m at the mercy of the stock market and have no control.”
The Truth: While many people feel this way, it’s often because they have no idea how much risk they are carrying in their investment portfolio, nor how to adjust their level of exposure to match their actual risk tolerance.
“I’ve never had enough to retire.”
The reason most people feel this way is because they are unsure of how to calculate with certainty how much income they’ll actually need. That’s why I meet with people and help them.
When It’s Needed
“I’ll need less money in the late years than I needed in my younger years.”
Most people will actually need MORE money in their later years of retirement due to inflation, healthcare costs, and increasing longevity. It’s important not to overspend in the early years and jeopardize the later years.
Counting on Parents' Money
“Inheritances will arrive!”
Don't count on it! Many seniors are living longer today, thanks to dietary changes & better exercise. Even when aging adults grow ill, medical care is so good that ailments can be controlled and minimized for years. Lucky you - Mom & Dad will live forever!
Taxes Will Go Down
“I am going to be in a lower tax bracket during retirement.”
Many people believe that when they retire, their tax rates will be lower because they will not be earning as much income. However, there is nothing stopping the government from raising taxes in future years.
Your Social Security income will be subjected to taxation in retirement, based on the amount of your other income sources. Withdrawals from an IRA or qualified plan years from now could actually be hit with higher income taxes – even if you’re not working. Tax law is always in flux.
Click here to view our video course on Income Planning: http://wealthfinancialpartners.net
If we can assist with your questions, call us at (877) 714-2362 to schedule a no-cost introductory consultation.