Start with spending, not the account balance
List essential monthly costs separately from discretionary spending. This gives each income source a purpose and shows where flexibility may exist if expenses or markets change.
Retirement income is a combination of sources that may begin at different times. Comparing those sources with your spending target makes the years your savings must bridge much easier to see.
Stop guessing: A retirement income plan feels more manageable when every source has a job and every gap has a name.
Use one consistent set of assumptions for each scenario. That makes the difference easier to understand and gives you a clearer starting point for an important conversation.
A portfolio balance does not show when income begins or how withdrawals may change over time. Laying out income sources by date turns a vague concern about enough into a practical view of the years that need the most attention.
List essential monthly costs separately from discretionary spending. This gives each income source a purpose and shows where flexibility may exist if expenses or markets change.
Wages, pensions, Social Security, annuities, and portfolio withdrawals can begin at different times. Showing the timeline exposes bridge years before a reliable income source starts.
A withdrawal amount is not the same as spendable income. Consider account types and estimated taxes with a qualified professional before acting on a plan.
It can include Social Security, pensions, annuities, part-time earnings, rental income, and withdrawals from taxable, traditional retirement, Roth, HSA, or cash accounts.
Bridge years are periods after work income ends but before another source, often Social Security, begins. They may require larger portfolio withdrawals and deserve separate attention.
Yes. A household comparison should show each person’s retirement date, income sources, and claiming age, along with the household spending they support.
Understand this planning tradeoff before you run your own comparison.
Understand this planning tradeoff before you run your own comparison.
Understand this planning tradeoff before you run your own comparison.
Build a private plan, compare two dates side by side, and review the assumptions behind the result.