LIFE'S ESSENTIAL NEEDS (LENs)

One of the many important considerations when addressing cash-flow requirements is the type of income – guaranteed or non-guaranteed – you have. Guaranteed income sources, such as Social Security or an annuity payment from a pension, are designed to last a lifetime. Conversely, there are no guarantees that income from employment or systematic withdrawals from your investment accounts will last as long as you need them. Both income types are needed to ensure your retirement income planning goals are met, and working with a properly qualified financial professional can help you plan wisely for both. Along with the income you receive, you’ll also be presented with income tax considerations, decisions on rates of withdrawal and other variables. With careful planning, you can avoid unintended outcomes. If you choose too much guaranteed income, an overly conservative approach could result in you living an overly frugal life. Choosing too much non-guaranteed income could lead to unacceptable risks and the depletion of your nest egg.