The Top 3 Benefits of Safety-first Income Planning ‼️

(don’t forget to checkout the video of this blog too)

Safety-first income planning focuses on eliminating market risk first.

That doesn’t mean you are eliminating the market from your portfolio…

It just means that you are prioritizing your Safe Money and your Retirement Income first.

Here are the top 3 benefits of safety-first income planning:

✅ Eliminating Market Volatility From Your Portfolio

One of the biggest risks leading up to retirement is a large market loss.

If you happen to retire at an unlucky time in the market this could very negatively affect your retirement income (it can even delay your retirement a few years)!

That’s why it’s smart to allocate some of your portfolio to an asset that is market-proof.

This means your portfolio holds an asset that CANNOT be negatively affected by a market drop (at a very critical time).

✅ Increase Your Predictability in Retirement

Predictability is often overlooked while planning for retirement.

But, retirees tend to value predictability more than anything‼️

That’s why a safety-first approach focuses on creating predictability FIRST.

This often means first creating a stream of guaranteed, lifetime income which can supplement your pension (if you have one), and/or your income from Social Security.

Either way, most retirees feel more peace of mind when they have built a plan that ensures at least enough income to cover all fixed expenses each month in retirement.

Once this is in place, you can rely on your investment portfolio for any additional income needs and extra spending in retirement!

✅ Peace-of-mind

Focusing on safety and predictability might not be the most glamourous element of a financial plan…

But, it sure can help retirement become a much more enjoyable time for you and your spouse.

Imagine basing your entire plan on the ups-and-downs of the market…

You might be celebrating when the market does well…

But, you might be hesitant to really enjoy your retirement when the market isn’t doing well (for fear of spending “too much” while the market is down).

This doesn’t mean you remove all of your money from the market — you still want to have money in the market to fend off inflation and to provide opportunities for long-term growth.

You just want to focus on protecting yourself from risk… first.

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