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Financial Planning to Build a Legacy – Diversifying Streams of Income

I am excited to have our guest blogger for this month, financial guru, Dr. Rita Bailey-Roland, CPA, CPC, who will provide some tips for us to take our finances to the next level this year. As you read, highlight some key points that will take you to a greater level of understanding the importance of financial planning.

-Kashonna Holland

If you are like me, you may be sick of hearing all of the virus news, yet still wanting to know everything you can concerning the Coronavirus. I wish I could sweep it under a rug and not talk about it to live happily ever after as if it never happened. Not so, right?! It is confusing right now to tell where or how widespread the Coronavirus may be in our community. And just as concerning are the social distancing rules. Should I not hug and kiss my spouse or my children?

Just as we are confused concerning this new virus and how to respond to it, so are the Financial Markets. Then, add an election year in the mix and all the dramatic uncertainty likely to come over the next few months, our savings has become just as concerning as this virus. Seeing our savings on a rollercoaster ride is not a thrill ride I want to be on.

As we think about our savings and retirement accounts, prior to the Coronavirus fears and concern, most retirees or soon to be retirees, had two (2) main concerns - running out of money and how to manage their income streams. Transitioning from your earning years (working) to your income stream years (retirement) requires a strategic and holistic plan of action to help allay those concerns. In retirement, the average person will have income from at least one of the three legs of the retirement tool listed:

  1. Pension: (In the last 15yrs, 50% of companies have replaced their pensions for the 401k model)

  2. Social Security (expected to be depleted by 2035. Source:

  3. Personal Savings (401k, IRA, Mutual Funds, TSP, etc.) (The average person over age 65 has approximately $200k in their retirement plans. Source:

Understanding how all your retirement legs strategically work together and the best time to start one stream over the other, is the difference between running out of money or your savings lasting just as long as you do. Proper income planning is extremely important because it impacts your taxes, Medicare premiums and RMD (required minimum distribution) planning. When we add in the love of our family and estate planning (generational wealth planning) to the cocktail mix, properly designed income planning strategies becomes one the most critical planning decisions a retiree can make.

Questions to Ponder:

  • Have you stress tested your income plan?

  • Do you know when is the best time to start receiving your social security income?

  • Do you have multiple streams of retirement income and when to turn on your different money faucets?

  • Is your estate plan solid or full of gaps that will leave your heirs’ fortune to Uncle Sam instead of your legacy as intended?

As we live through the highs and lowest of lows of the stock market, how are you stomaching the outlook for our finances? Are your eyes wide open or have you turned a blind eye on your finances? As you answer these questions I’d like to offer a quote from poet and author Marcia Cole to help us digest the answers to these questions. And I quote - "The truth does not change according to our ability to stomach it."

If you cannot answer the above questions with accuracy or need more clarity or assistance in creating an income plan, reach out to a Financial Strategist. (PS: May I recommend myself to assist you?)

At my company, we help our clients build safeguards into every plan that will protect our clients from market volatility and long-term losses. We help you transition from your earning years to your retirement income streaming years. This process is the core of our entire business.

Contact us today at 301-577-6340 or to help you reach your financial destination.

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