A lot of people use the term “financial plan” to refer to “a savings and investment plan.”

I always wince.

I’ve yet to meet someone who says, “My life goal is to save and invest money.” What people tell me is, “I want to save and invest money so that one day I can …” (then they finish the sentence in all sorts of interesting ways).

That’s really what we want: to have enough income—once we stop working—to live a certain kind of life.

In other words, it’s not simply assets, it’s income that we need in retirement—a regular money stream to replace the paychecks we’re earning now in our working lives. In short, we need is a “retirement income plan.”

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