I-Succession: Lesson 3 Part 2
I-Sucession: Lesson 3 on Adding Your Business and Business Real Estate into Your Financial Plan
By Daniel M. Isard, MSFS
The analysis of how much you need and the estimate of how much you should have to fund this need is the focus on the third I-Succession video. So far, members have told me two key takeaways. First, “the need is more than they thought.” The reason for the higher need than contemplated is the need is focused on Buying Power. In simple terms, Buying Power is not just producing your need for income in any one year, but it is providing an income that is keeping pace with inflation. Someone wanting $100,000 a year when they retire will need about $103,000 the second year of retirement assuming a 3% inflation rate. By the time the retired person has lived 20 years, that $100,000 annual Buying power could have doubled!
The second comment I am getting from people viewing the video is, “I thought I had more investable dollars than your calculation.” That is a common mistake. People don’t take taxes into consideration and other points. Remember, we don’t live in a gross society, rather a net society. Check out the video and let me know what your thoughts are!
Daniel M. Isard | Founder
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