Tuesday, December 21, 2010

Income Investing Plan Step One

The New Year is upon us and now is the time to set your 2011 goals.

Define your income investing goal.
Your best investment intentions cannot make up for a precise definition of your investment goal. Without a clear idea of where you are going, you will be throwing darts at investment ideas rather than attaining your investment goals.

Select one of these goals and use it as a guide to create your own precise goal. It matters not whether you self direct your investments or use a professional, you must define your income goal.

I want my investments to generate cash flow:
    • equal to my expenses
    • greater than my total expenses
    • It's okay if it is less than my total expenses
Now that you have determined your cash flow goal, think about what you want to happen to your principle.  Select the scenario that best describes how you want to disburse your savings when you mature (in philanthropy words that means when you die.)

When I mature I want my original principal to:
    • Equal the original amount
    • Have a greater value than when I retired
    • It's okay if it decreases

This is not an estate planning website. I am here to help you invest the portion of your savings you have set aside to create the income you need for a wonderful retirement.

Complete Step one of your retirement income plan by writing down your goal and dating your work.

Very Truly Yours,

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