See Part 1.
Freedom income is the money to do the things that bring enjoyment and fulfillment to everyday life. This can include everything from recreation, travel, adventure, personal growth, hobbies and entertainment. For some it may include money for dining out, movie tickets, or health club dues. For others it could include country club membership fees or season tickets. How much will you need to fund your freedom?
Gift income is money for the people and causes that we care deeply about. Part of funding your lifestyle may involve helping your children and/or your parents. This is the money you set aside to pay for tuition, to lend a helping hand to family members, or that you give to your church and to support the organizations and charities that are meaningful to you.
Dream income is money for the things we’ve always dreamed of doing, being or having. Maslow refers to this as self-actualization – the desire to realize your full potential, to fulfill your passion and purpose in life. If you’ve covered all the necessities, prepared for emergencies, set aside funds for enjoyment and recreation and taken care of those you care about, is there still some unfulfilled desire that you have? Financially speaking, what is the cost of being or doing what you truly desire?
Once you have explored and identified all your income needs, to complete this process you will need to examine your income sources to see how far you can rise on the hierarchy of financial needs. Then you must determine what preparation, strategies and self-discipline are necessary to cover every level.
Don’t live in fear of outliving your assets. Give us a call and let us help you start planning your Income for Life. Watch for future Maslow Meets Retirement Workshops and more on this topic.
At Coyle Financial Counsel, we have incorporated Anthony’s Income for Life planning into our comprehensive wealth planning and management approach. As a client of Coyle Financial Counsel Partners, we’ll engage in a dialogue with you to help answer these important questions:
- How much do we need to live our life—in terms of covering costs for survival, safety, and freedom?
- How much capital are we working with? How much do we have in cash, savings, and investments? What level of income can we expect from retirement income sources such as Social Security, pensions and 401ks/IRAs?
- What do we need each month/year to live our life? What type of return is needed from our investments to meet our goals?
- Where can we get the return we need? What type of investment mix will provide an appropriate level of risk and return?
- Can we help others and still live our dreams? How will we fund our gifts and dreams? And how will this impact our capital at work and the amount needed to meet our monthly and annual needs?
Discover a better way to manage your finances. Give us a call to discuss your retirement plan.
[caption id="attachment_433" align="alignleft" width="150"] Robert K. O’Dell, CFP[/caption]
Coyle Financial Counsel’s Rob O'Dell, CFP® has been implementing strategies and providing ongoing wealth counsel to families as they navigate life’s transitions for the past ten years. Contact Rob to learn about visual financial planning and mind mapping and discover a better way to manage your finances.
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Posted on Thu, November 1, 2012