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Know Your Income
www.BlackhawkLivingCA.com @BlackhawkLivingCA #BlackhawkLivingCA
By Joe Morgan, CFP®, CFA, Principal: JWM Wealth Management, LLC, Resident since 2004
Last month we discussed knowing what you have, which is a necessity before planning how to move forward. Another important part of your resources is your income.
Here, we are looking at all of the different income types you will have going forward. This includes your salaries, bonuses, and any stock that you were awarded. In addition, consider how your stock vests as well as whether it will continue to vest when you retire.
There are also various sources of income in retirement which typically come in the form of pensions. Social Security, while not enough to live on, can be an important income source as well as any pensions from your employers throughout your life.
Importantly, there are decisions to be made around these pensions that determine how much you will get and for how long. Particularly, we need to consider a “single life” payout vs. a “joint and survivor” payout for any pensions.
For Social Security, there is the all-important decision of when to file. The government gives you a big fat 8% per year raise for delaying, which can be considerable if longevity is a concern.
All of these need to be considered in conjunction with your spending. For example, if you want to push back filing for Social Security to get a maximum payout, you need to understand how you will meet your expenses in the meantime and how that might affect your total wealth throughout your years.
This is a great bird’s-eye view of determining your income to get things started, but let’s take a deeper dive into what you will have to spend in retirement. Join me over on my blog at https:// jwmwealth.com/blogs/thoughts-do-you-know-your-income and let’s start calibrating your path to clarity!
JWM Wealth Management, LLC is a Registered Investment Advisor with the State of California and Joe Morgan is a fiduciary to his clients at all times. If you’d like to ensure your finances are on the right track, schedule a call with Joe at www.calendly.com/ jwmwealth. You can also learn more at jwmwealth.com.
