How Does Income Planning Work? Roy Y. Gagaza Weighs In

Ideally, retirees shouldn’t rely solely on their savings to support their lifestyle as they age. Roy Y. Gagaza discusses how income planning works and why it’s not a luxury anymore. 

When Social Security first debuted, it provided a reliable income for people learning to live without a steady paycheck. Today, retirement is complicated by everything from tax brackets to unpredictable inflation. 

Roy Y. Gagaza is a Financial Professional and a big proponent of income planning to combat the uncertainties of the future. He reveals why no one can afford to ignore this strategy. 

The concept of income planning is relatively simple: professionals build their portfolio so they have a certain amount of money available every month. Long before their retirement age rolls around, they’ve already made major strides to set up a thick financial cushion for themselves. 

Implementing income planning can be more complex though. Roy Y. Gagaza notes that the number of avenues available is virtually limitless. Some people will withdraw money solely from their retirement accounts. Others will cobble together income from assets like Social Security, rental properties, or stock dividends. It could mean a part-time job that taps into a hobby a client has had for their entire lives. 

The goal of a Financial Professional  is to ensure that every source of income is as secure as possible. Roy Y. Gagaza has to calculate odds and factor that into forecasts. For instance, if a commercial property with 4 units is expected to be occupied at least 80% of the year, then the numbers will reflect that. 

This is the best way to give retirees a real picture of what their life will look like. It goes beyond the standard advice of amassing $1 million to withdraw between $40,000 – $50,000 a year. When people know what they have and how it will be distributed to them, it’s easier to plan for anything from utilities to vacations. 

When Roy Y. Gagaza considers his clients’ needs, he also thinks about common scenarios that might derail their retirement plans. From medical ailments to education expenses for descendants, people often need more than they think to live out their Golden Years without financial anxiety. The better the income planning, the more prepared they’ll be. 

Roy Y. Gagaza on Exploring the Options

Income planning will depend on a professional’s relationship with risk and their personal lifestyles. Not everyone will want to be a property owner or invest in an industry they know little about. 

It’s why Gagaza has learned to be meticulous about what he suggests to his clients and how he steers them toward a holistic financial strategy that makes sense for them. His goal is to assure his clients they haven’t left a penny on the table.