Retirement planners focus on a persons gross income as the money needed for retirement. Why?

I do not receive my gross income. I receive my net income. I currently earn $40,000 Gross . After medical, hsa, and 401K I receive around $28,000 Net.

I live on $28,000 not $40,000.

Thank You,
Dan

Asked by dan

2 Answers

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Answered by Kim Miller, CFP®PRO+ in Redmond, WA
A competent planner will be considering the impact of taxes on your retirement income. To do so, we have to start with gross income and look for ways to lower/minimize the income tax burden. | 09.19.14 @ 22:40
Comment 1  
dan — That does not make sense. My retirement income will be less than my gross income. Why waste time focusing on a False Income ? | 09.20.14 @ 19:45
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 09:56
Answered by Dave Bradley, Investment Manager (Financial Advisor) in North Charleston, SC
Hi Dan.
Kim gave you the Planner answer. To confront your concerns directly, as an Investment Manager (IM), let's dig deeper into this.

Why?

Gross. Net.. Average. CAGR. Etc. The terminology can be intimidating. Our focus is to keep things simple. Therefore, I am more concerned with getting folks where they need to be financially and keeping them there. We let our customers give us their number. Then, we dig into how to achieve it.

It's not what you make, It's what you keep that determines your lifestyle.

Feel free to contact us directly for more information or just to get direct answers.
| 05.04.16 @ 23:33
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$commenter.renderDisplayableName() — {comment} | 12.11.16 @ 09:56
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Answered by

Kim Miller
Kim Miller, CFP®PRO+ in Redmond, WA