Income Projections
Income projections can be a useful component of a comprehensive financial plan and may help evaluate financial health, inform decision-making, and support investment and savings strategies.
- Sunday - Friday: 9 am - 8 pm
Income Planning
Income projections provide estimates based on assumptions and should not be viewed as predictions or guarantees. Economic conditions, market performance, tax laws, and personal circumstances may change over time, requiring periodic adjustments to the financial plan. Regularly reviewing and updating a financial plan can help keep it aligned with an individual’s goals as circumstances evolve.
Sources of Income
Income projections typically consider various sources of income, such as salary and wages, rental income, dividends from investments, interest income from savings or bonds, business income, pension, social security benefits, and any other expected inflows.
Time Horizon
Income projections are typically made over defined time periods, which may span several years or decades depending on individual goals and the purpose of the financial plan.
Assumptions
Income projections rely on assumptions about future events that may influence income, and actual results may differ materially. These assumptions may include factors such as salary changes, inflation, interest rates, economic conditions, and employment status, all of which are uncertain and subject to change.
Taxation
Income projections may incorporate estimated taxes, recognizing that tax laws and rates can materially affect net income and are subject to change.
Long-term Goals
Income projections may be particularly helpful when planning for long-term financial goals, such as retirement or education funding. They can help estimate potential savings and investment needs and assist in evaluating an appropriate level of risk for an individual’s circumstances.
Investment Strategy
Based on income projections, the advisors at Virtue Asset Management may recommend investment strategies designed to align with an individual’s risk tolerance and financial objectives. Investment recommendations are subject to market risk and may not achieve intended results.