Making the Switch to Paying Yourself

Making the Switch to paying Yourself SouthPark Capital

You’ve probably had a daily routine for most of your life – from tying your tie and greeting your coworkers to loosening that tie when you get home. When thinking about retirement, not only does your daily routine change but your financial routine does too. In your working years, you made sure to have a savings and wealth accumulation plan. Your retirement goals were focused on building wealth, but now, your goal is to spend it efficiently. When you’re going back to school on your retirement, you’ll recognize that that’s a much different request to ask of your financial plan!

Net Worth Versus Income

When it comes time to switch from earning income externally to paying yourself, you should look at your net worth and income differently. You’ve gotten used to seeing income as something external that comes to you from working and staying busy and your net worth as something you contribute to and build. Instead, think of your net worth as something that you actively tap, which informs your income, and your income as something that comes from yourself, not external sources.

What Does This Change?

Thinking about your net worth and income in this way may seem unactionable, but in practice, this comes with serious changes to how you utilize your money. All your life, you wanted to increase and maximize your income so that you could cover your costs, save, and invest for your future, with your income acting as the backbone to living and achieving your goals.

However, if you attempt to carry that mindset over to retirement, maximizing your income will leave you paying more in taxes than you need to, slashing the lifespan of the savings you worked so hard to build.

The backbone of your retirement, instead of income, is your savings and overall net worth. You’ll want to provide yourself with income from what makes up your net worth – retirement accounts, dividend investments, rental properties, or other assets – and use these to cover your costs, but since you’ve already saved up and built your net worth, any excess income will be a dead weight on your retirement longevity.

Making the switch from saving to spending is like going from driving a car to flying a plane. It’s a whole new way to look at your finances, and there are a lot of new tools, frames of mind, and opportunities to be aware of to navigate your retirement successfully. Rather than learn the whole retirement game on the fly, risking costly mistakes, [sc name=”comp_review”] to work with one our professionals at [sc name=”company_name”] so we can help guide you toward achieving your retirement goal.


Securities offered through Arkadios Capital, LLC (Member FINRA and SIPC).

Past performance does not guarantee or is indicative of future results.  This summary of statistics, price, and quotes has been obtained from sources believed to be reliable but is not necessarily complete and cannot be guaranteed.  All securities may lose value, may not be insured by any federal agency and are subject to availability and price changes.  Market risk is a consideration if sold prior to maturity.  Information and opinions herein are for general informational use only and subject to change without notice.

This material does not constitute an offer to sell, solicitation of an offer to buy, recommendation to buy, or representation as the suitability or appropriateness of any security, financial product or instrument, unless explicitly stated as such.  This information should not be construed as legal, regulatory, tax, personalized investment, or accounting advice.   This message (and any attached materials) is for the sole use of the intended recipient(s) and may contain information that is privileged, confidential and exempt from disclosure under applicable law. Any review, dissemination, distribution or duplication of this communication is strictly prohibited. If you are not the intended recipient, please contact the sender immediately by reply e-mail and destroy all copies of the original message.

Share This Post:

MORE ARTICLES

Join Our Mailing List

Join our mailing list for exclusive financial insights, updates, and offers tailored to your needs. Stay informed and take control of your financial future today!

WELCOME TO OUR NEW SITE

We've Made Some Big Changes

We're delighted to introduce our new and improved online space tailored to elevate your online experience.

If you have any thoughts, questions, or if you’d like to schedule a consultation drop us a line. Your insights help us refine our services.

Skip to content