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Four Big Retirement Income Factors (Plus a free planning tool!)

Retirement income planning is really pretty simple.

Not easy. But simple.

In this video we'll discuss the Big Four factors of retirement income planning. In other words, the four things you can adjust to make sure you never run out of money.

Plus at the end, I'll tell you how to get your hands on the planning tool I use in the video. For FREE.

First watch the video below:

The Four Retirement Income Factors

Here are the Big Four retirement income planning factors. Each one is important to your retirement success. If you can do well in all four, your retirement income should be no problem!

1) Time

Time is the most important factor when planning for retirement income.

Unfortunately, it's also our scarcest resource.

The longer you have until you need the income, the more time to have to build your wealth. Not having a long period to save and grow your assets is not fatal.

It just requires a different approach. Like buying an income stream that's not in the stock market. Or finding ways to passively generate good income.

Just remember, the more time you have, the better. (So use that time wisely!)

2) Income Needed at Retirement

The second big factor for retirement income planning is: What income will you need?

In other words, what is the annual "salary" you'd need to live comfortably?

In the video, we use a single number for this amount. In my advanced planning​ tool, we factor in other things like Social Security, another income stream (like a small business), and a possible inheritance.

The income you'll need is​ directly related to the time you have to save. More income means more time you'll need to save more, all else being equal.

If you can learn to live on less NOW, you'll have an easier time saving for income LATER. This can give a major boost to your retirement saving!

That brings us to factor #3...

3) How Much Can You Save Now

There's nothing like being able to save a lot of money. It can cover for a lot of other investing and retirement planning issues.

- Market rollercoaster? Won't feel as bad if you're SAVING A TON.

- Retirement getting close?​ Make it easier by SAVING A TON.

- Feel trapped in your boring job? Give yourself options by SAVING A TON.

- Younger with no kids? Get light years ahead of your peers by SAVING A TON.

Ok, I think you get it. Saving as much as you can now is critical.​

​4) How You Invest

The last factor for retirement income planning is how you invest the money.

You've heard me talk about the behavior gap. How you act with your investments will determine your success, or failure.​

If you get conservative because you're worried about the next market crash, you're probably wrong. If you put more money in the market because everybody's making money, you're probably wrong.

I know it's frustrating. It goes against how you feel in your gut. But it's true.

When it feels WORST is usually the BEST time to invest. And vice versa.

So how do you make yourself do it correctly? Here are a few ideas:

  • ​Automate your investing, so you're not having to make the decisions
  • Save more money (see above), so you'll have more emotional wiggle room
  • Have a trusted advisor who can act as a buffer and help you make good decisions you'll be happy with later
  • Having a long term outlook. Even if you're 60, you need to consider another 30-40 years of investing.

As one advisor said "You can have security now, or security later. Not both."

What that means is if you get too conservative with your investments now, you'll pay for it dearly later in life. You MUST take some risk.

You'll almost certainly be happy you did.​

Summary

So the Big Four retirement income factors are:

  1. Time - How much time do you have until retirement?
  2. Income needed - How much will you need to live on in the future?​
  3. Saving - How much can you save now? Everything is easier if you SAVE A TON.
  4. Invest - Take risk now and you'll be safer later. No risk now means you'll pay for it in retirement.

I hope this was helpful. Let me know in the comments below.

Don't forget to sign up for the planning tool I used in the video:

See you next time!

Tommy Sikes​

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