4 Ways To Protect Your Long-Term Income

One of your most basic financial planning goals should be to achieve long-term income. That's especially true of producing the income you'll need to live a quality retirement. How do you create and protect the income you deserve, though? These four tips will help you to have a more comfortable long-term financial outlook.

Income Planning

It's hard to have a dependable income, especially if you wish to hang up working life, without a plan. Individuals in the world of income planning services encourage their clients to think about how they're going to build their assets, create passive revenue streams, and maximize the benefits of tax-deferred retirement accounts. They'll also help their clients to think about how to plan to be resilient in the face of inflation and inevitable economic crises.


Every plan needs occasional adjustments. For example, you might have made investments in the stock market that exceeded your wildest dreams. In terms of income planning, you'll want to convert some of those gains into steadier sources. For example, you might move a portion of the gains into bonds to ensure the money will continue to grow while also being there in your later years.

It's not unusual to have to rebalance every few years. Some of your plans will work out better than others, but that can put too much risk in one category. For example, someone who owns rental properties might have seen home prices skyrocket to the point their properties dominate their income planning portfolio. They may need to sell a few of the properties to rebalance and reduce their risk exposure if the property market crashes.

Tax Minimization

For an income planning services provider, few jobs are as important as steering their clients clear of unnecessary taxes. This starts with maximizing contributions to benefits accounts and not taking money out until the accounts have passed any penalty thresholds. Similarly, a planner will encourage you to only draw as much income from those accounts as you can without raising your tax burden. Those who work less or not at all in their later years often are in lower tax brackets, and that allows them to pay little or no taxes on their withdrawals.

Know Your Targets

A major part of income planning is knowing what your targets are. Do you want money to buy a different home when you retire? Will you want to travel? Are there any potential uncovered medical expenses in your or your spouse's future? You should build your plan to provide the best cushion and quality of life possible. To learn more, contact an income planning service.