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Income Sources
Social Security, pensions, annuities, investments, and retirement accounts.
Featured Story
Bob & Terry Thought They Were Ready To Retire
Bob and Terry Gatlin walked into my office convinced they were ready for retirement.
Bob was 66. Terry was 64.
They had worked hard, saved consistently, and accumulated what many people would consider a healthy retirement nest egg.
When I asked how much they had saved, they immediately knew the answer.
When I asked how much retirement income would arrive every month after they stopped working, they weren't quite as sure.
Like many retirees, they had focused on account balances instead of income planning.
So together we completed a Retirement Income Worksheet. We listed every source of income:
- ✓ Social Security
- ✓ Pension benefits
- ✓ IRA withdrawals
- ✓ Savings
- ✓ Investment income
- ✓ Emergency reserves
We then compared those income sources against their expected retirement expenses. What we discovered surprised them.
They didn't have a savings problem. They had an income planning problem.
There was a gap between the retirement lifestyle they wanted and the income their assets would realistically provide.
Fortunately, we discovered it before retirement instead of after retirement. By making a few adjustments, they entered retirement with far greater confidence and a clear understanding of where every dollar would come from.
Ebby's Lesson
What Bob & Terry Taught Us
Many people track account balances.
Few people track retirement income.
Your retirement lifestyle is funded by income, not account statements.
Understanding where your monthly income comes from is one of the most important steps in retirement planning.