Bloom Financial

The Magic Ticket

The Magic Ticket

Imagine you’re about to retire.  Say, in six months from now…

 

Now, consider your ideal scenario. Receiving at least as much income when you’re retired as when you were working.  This could be your most comfortable and confident outcome. 

 

However, achieving this “100% or better” Income Replacement Ratio is not something most of us know how to do.

 

And so, what you do is, create something called a “withdrawal percentage.”  And the metric that you use is a percentage of your assets divided by 12 to receive monthly income.

 

And it works like this…

 

Let’s say that after we add up all your investable assets, you have a total of a million dollars.  Next, we would multiply that by the percentage you will need on an annual basis to live off of.  We’ll use 5% to keep things simple, so when you multiply $1,000,000 by 5%, you end up with $50,000.

 

Then life happens.  Unexpected costs require you to withdraw some of that investment capital and the market slumps and your investment capital shrinks to $800,000.  Now your income is $800,000 x 5%, which is $40,000.  The moment your account value diminished was the instant your annual income was lowered, and in this case, not in a trivial manner.

 

This example illustrates why it is imperative you have your income streams in place before you retire.  The stock market fluctuates.  Unexpected expenses will almost certainly arise.  A reduction of your investible assets could diminish your retirement income, perhaps to a level that neither of us want to consider.

 

Here is the reason I’m sharing this with you:  When your retirement income plan does not have guaranteed income streams, you are at risk to potentially run out of money before you had planned.  It only makes sense for you to know how much income you need in retirement and create those retirement income streams that you’ll need to last your lifetime.

 

That could be your Magic Ticket:  The winning benefits of retirement income streams for the rest of your life.

 

I look forward to all of your questions and helping you to focus on your retirement income stream planning so you may Retire As You Desire.

 

- Bill Bloom, RICP®

 

 

 

PS: I’m offering a customized Retirement Income Plan.

 

If you have saved $500,000 or more, you may be surprised to see how much annual income you could receive.

 

If you have saved $1,000,000, you could be sitting on a great opportunity to receive meaningful retirement income streams.

 

In your customized retirement income plan, you receive a strategy that could show you how to have your money last a lifetime.

 

Just reply with “Retire As You Desire” in the subject line and I’ll get you all the details!

 
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