Advisor Insights Client Connect


Written by: Clinton Brown CFP®, ChFC, CLU, CASL®, CAP®

Consolidating Information

With numerous assets that can produce income, it can be challenging to manage all of the sources. With an income plan, you will be able to organize all of your potential income sources. Whether you have assets in real estate, stocks, bonds, old retirement accounts, or trust accounts, you will be able to organize them in a way that will keep your finances and goals aligned. You can see clearly what your sources of income will be and whether it will be enough to cover your monthly needs.  Once we have a clear understanding of our income sources and levels, we can then analyze which way is best to utilize these assets.

Knowing Where to Draw Income From and When

Oftentimes we find ourselves wondering where to pull money from. Where will it hurt the least? Where will it benefit me the best?  With an income plan, you will have a clear path of which assets to draw income from and when. How are each of these assets treated? Each asset you own could be treated differently when it comes to income taxes. It is important to have a good understanding of each source of income and its tax treatment. You also have potential tax considerations if you have income sources through pensions and/or social security. An income plan helps answer these questions by addressing your specific financial situation. When we know where to draw income from, we’re keeping in balance. This will help us create a more useful individualized portfolio.

A More Useful Portfolio

Instead of managing your investments by returns, an income plan will help you manage your investment portfolios by income goals and generational planning goals. On Page 11 of Financially Sound it states, “In the end, everyone is pursuing their goals. They are pursuing the goals they made, and adjusted over time, that are laid out in their personal financial plan.”   It can get frustrating when you are chasing returns on your current portfolio. You get caught up in trying to be invested in one sector when another might be performing better. You jump to the better performing sector only to see the previous sector do well. An income plan can help alleviate the stress of keeping up with the markets’ ups and downs, instead focusing on determining if your asset can provide the monthly stream of income you will need for the long-term.

Easing your frustration is the main goal of the income plan by keeping you and your finances in balance.

Peace of Mind

The last thing we need is more stress in our lives. With an income plan, you can alleviate most confusion keeping you from understanding your goals. You can obtain a peace of mind that the resources you have worked your entire life to build will contribute toward your income goals during retirement. Seeing it all on paper, in a clear, concise manner could help you sleep better at night. Using an income plan can help you understand how long your money might last and what you may have to pass on to your heirs.

Setting the goals, laying out a plan and then finally implementing that plan can bring financial peace that many are looking for.

On Page 41 of Financially Sound it reads, “Each person’s priorities are different, and we are sure to cater to all clients individually.” Because everyone’s situation is unique, it is important that an Income Plan is prepared specifically to you and your scenario. This way, you can know that the numbers and projections in this plan can behave as a guide to your future decision making. This knowledge can ultimately help provide a level of peace that frees you up to more wholly enjoy your retirement years.


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Investment advisory services are offered through Trek Financial, LLC., an SEC Registered Investment Adviser. Information presented is for educational purposes only. It should not be considered specific investment advice, does not take into consideration your specific situation, and does not intend to make an offer or solicitation for the sale or purchase of any securities or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Trek FG 17-454

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