The Heart of Any Financial Plan is Income

Figure out your income sources in retirement: Social Security, Pension, 401(k) and IRA and other assets. 

The heart and soul of any good financial plan is your income. It’s the lifeblood that keeps your financial goals alive, flowing, and achievable. Your income determines how you can save, invest, and allocate resources to achieve the life you envision. Without a clear understanding of your income, creating a meaningful financial plan becomes almost impossible. 

Income isn’t just about what you earn today; it’s also about how you plan. Whether you’re working full-time, running a business, or receiving retirement benefits, understanding your income streams is essential. It’s the starting point for building a budget, saving for goals, and creating a safety net for the unexpected. 

Why Have an Income Plan:  

An income plan is a structured approach to managing your financial resources, so they last throughout your retirement. It considers your income sources, expenses, and potential challenges, ensuring you have a steady stream of funds to meet your needs and goals. Much like a bear preparing for hibernation, your income plan helps you stockpile and allocate your resources wisely. 

Instead of the struggle being the harsh winter it’s the double-edged sword of longevity. Longevity is becoming a significant issue in retirement for one simple reason: ensuring you have enough money to last. With life expectancies increasing, the challenge isn’t just making your money stretch but also having wiggle room for unexpected expenses. Tackling this issue starts with a robust income plan. 

Learn More: Thankful for Financial Guidance: The Value of Working with a Financial Advisor 

Why Income Matters:  

Your income is more than a paycheck; it’s the foundation of your financial stability. It fuels everything from daily expenses to long-term investments. Here are a few reasons why income plays a central role in any financial plan: 

1. Budgeting: Income helps you set realistic spending limits and prioritize your needs and wants. 
2. Saving: Regular income allows you to build an emergency fund and save for future goals like retirement. 
3. Investing: A steady income provides the opportunity to grow your wealth through smart investments. 
4. Debt Management: Knowing your income helps you manage and pay down debts effectively. 

An income plan is identifying your income sources, adding up your expenses, putting a saving plan into effect, and managing your assets. Getting started with creating one starts with simply knowing your income sources what money will be coming in that you can live off during retirement. 

Learn More: How to Create a Budget That Works for You: Practical Steps for Financial Success 

Fall in Love with Your Financial Plan:  

With the help of a good financial plan and a trusted advisor, you can fall in love with your finances. A personalized financial plan helps you: 

• Maximize your income by identifying tax-saving opportunities. 

• Create a roadmap for achieving your goals, whether that’s buying your dream home, traveling, or retiring comfortably. 

• Gain peace of mind by ensuring your financial future is secure. 

A skilled advisor aims to help you make the most of your income, align it with your goals, and navigate challenges along the way. 

Meet with a 210 Financial Advisor today by calling (309) 263-1333 or scheduling an appointment online!  

Income in Retirement:  

Knowing how much to save for retirement is one of the biggest questions and one that’s not as simple as it appears. It relies on many factors: How much money do you need to live on a monthly or yearly basis? What income sources do you have coming in during retirement? Do you rely on some of that income coming in from a spouse – What happens if they die? How much of that income is then gone or not coming in? What about Social Security? How much of that is coming in?  

If you are unaware of what income you have coming in or will for retirement, it’s time to figure that out. If you don’t know at least a rough estimate of what you spend in a month on necessities and other wants, it’s time to get that nailed down so you can make a plan to retire.  

And finally, if you have no retirement plan it’s time to talk with a financial planner and get something written down with the heart of it being your income. 

Learn More: Will Social Security Be There For Me? 

Conclusion:  

Your income is the heartbeat of your financial success. Ready to make it work harder for you? Schedule a consultation with 210 Financial today and discover how to build a financial plan that aligns with your dreams and seeks to help you achieve lasting security. 

Let’s create a plan you’ll love—starting with your income. 

---

 

Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and 210 Wealth Management, Inc., d/b/a 210 Financial makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that 210 Financial may link to are not reviewed in their entirety for accuracy and 210 Financial assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from 210 Financial. For more information about 210 Wealth Management, Inc., d/b/a 210 Financial, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (309)263-1333.