Income Planning A Three Step Approach

Applied knowledge is a greater resource than money. With over 50 years of combined experience, the focus of Cambium centers on our clients' vision for their future to create a lasting impact on their wealth potential.

New York, NY (prHWY.com) February 7, 2011 - Step One: Income Generation

How do you generate an income? For most, the answer is by working. Some may inherit assets, but the
great majority addresses their income needs by working.

In this context, income planning starts with a vocational decision - "What do I want to be when I grow up?" For some, the decision may simply be a matter of pursuing one's interest - doing what you love. But from an income perspective, some careers pay more than others. That fact prompts additional questions that must be answered, such as "How much will I make with a college degree and how much will I make without one?" The reality is that financial and material aspirations may be at odds with vocational interests - doing what you love may not generate the income necessary to satisfy your financial wants and needs.

This doesn't mean that all career decisions should be based solely on the compensation package. In fact, the opposite is often true, since many people have developed significant incomes by pursuing their passions. And this is not an article about career counseling. But the decision of how (or where) to develop an income is one that greatly impacts all future financial circumstances. The financial return from your income, both currently and in the future, should be evaluated like
any other investment.

Along these lines, the Wall Street Journal's Jonathan Clements recommends evaluating your paycheck as a bond ("Why Your Paycheck Is Really a Bond," July 11, 2007.). In exchange for a personal capital investment of yourself (which may include special training, degrees, etc.) your work delivers an annual interest payment (income). What is the quality of your income? Is it
steady, reliable, with long-term growth potential? Is it irregular, but historically trending upward?

To view the next two steps and continue this article click on the Cambium Web Site, Newsletters, September 2007.

Learn more about Financial Planning at http://www.Cambiumonline.com

###

Tag Words: ct, ny, financial planning ny, nj, financial planner, asset management, wealth management

Categories: Finance

Press Release Contact
New Jersey
2317 Highway 34
Suite 1F
Manasquan, NJ 08736
Tel 732.262.5323

New York
2500 Westchester Avenue
Suite 401
Purchase, NY 10577
Tel 914.825.1025

Link To This Press Release:

URL HTML Code