Retirement Income Planning

retirement income planning

Retirement Income Planning

November, 2020

By: Jeff Headrick, Financial Advisor

Retirement income planning is an important part of preparing for retirement. The amount of income you will need, as well as when and where to withdraw it from, can be one of the hardest tasks in financial planning.

For simplicity, we will examine three key steps to retirement income planning.  

Retirement Income Planning and Social Security

The first step in retirement income planning is to understand social security. You need to determine how much social security you are eligible for, and when to "turn it on." 

Most of the time it is beneficial to wait until you are at full retirement age, which is typically age 66 or age 67.

To receive a detailed report of your social security, simply go to the social security administration link below and sign up to get an update of your options:

Create Your Own Personal Social Security Account Today

If you would like to visit the social security administration offices in your city such as Wilmington, Raleigh, or Charlotte, NC, visit the link below for their location and hours of operation. 

North Carolina Social Security Administration

Retirement Income Planning and your IRA/401(k)

The second step in retirement income planning is to determine withdrawal options on your Individual Retirement Account (IRA).

You cannot draw on these accounts without penalty until 59 1/2. Further, you must begin to withdraw funds no later than age 70 and 1/2.

If you do not, you will be penalized substantially. So, there are a lot of rules that you need to be aware of.

Final Step of Retirement Income Planning

Once you are up to speed on your social security and IRA options, it's time to determine how much money you will need per month.

Many experts say that 80% of your pre-retirement income is a place to start, however, I have found that the actual amount is usually less then this. 

The best thing you can do is to simply create a budget (and trust me--Everyone Needs a Budget). This is probably the first step to retirement income planning, but since most folks hate to do it--we made it last! 

Retirement Income Planning Summary

Retirement income planning is not easy.

There are many variables, and in some cases variables within the variables!

However, we believe that by following these core steps, most folks will be able to get a good idea of how to create a good plan.

If you need assistance, give us a call at (910) 726-0858. You can also schedule an appointment for a virtual meeting by clicking the link below.

Schedule a Virtual Get Acquainted Meeting


About the Author

Jeff Headrick is an independent financial advisor and private wealth manager with Inspire Financial Planning, LLC.

When Jeff was still in his teens his father died unexpectedly. While his father was a hard worker and a good provider, he did not have the best financial plan in place when he died. This left his family at a difficult  financial crossroad. This personal experience, coupled with being inspired by Sir John Templeton, Warren Buffett, Dave Ramsey, and the laws of compound interest, prompted Jeff to enter the financial services industry in 1999. He has been helping people with their financial planning ever since.

Jeff lives in Wilmington, NC with his wife and two children. He spends most of his spare time just across the Intracoastal Waterway in Wrightsville Beach, enjoying the beauty of the NC Coast.

Charts and graphs contained herein should not serve as the sole determining factor for making investment decisions. All hypothetical scenarios are for illustrative purposes only. Investment Advisory Services offered through AlphaStar Capital Management, LLC a SEC Registered Investment Adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Diversification does not guarantee profit nor is it guaranteed to protect assets. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results.

You cannot invest directly in an index. Consult your financial professional before making any investment decision. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Inspire Financial Planning and not necessarily those of AlphaStar Capital Management, LLC, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.