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The Income Audit Workbook

The Income Audit Workbook — Ludwig Wealth Management

THE INCOME AUDIT

Workbook

Map every dollar of your savings onto a structured retirement income plan — in about 90 minutes.

WHEN YOU FINISH, YOU WILL HAVE FOUR SPECIFIC NUMBERS:

  • Your monthly income gap — the number your portfolio must cover each month
  • Your Stage One target — near-term income protected from the market
  • Your Stage Two target — the inflation bridge that grows toward later years
  • Your Stage Three picture — what remains positioned for long-term growth

Work through the five steps in order. As you type dollar amounts into the fields, your targets and gaps calculate automatically.

STEP ONEYour Income Foundation

List every source of guaranteed income you currently have or expect to receive — income that arrives regardless of what the market does.

Income SourceMonthly AmountStarts WhenTax Treatment
Social Security (you)
$
 Partially taxable
Social Security (spouse)
$
 Partially taxable
Pension
$
Annuity income
$
Other income
$
Other income
$
TOTAL MONTHLY GUARANTEED INCOME $0.00
This is your income foundation. Everything your guaranteed income does not cover is your income gap — the amount your portfolio must produce each month.
STEP TWOYour Monthly Income Gap

Enter your average monthly expenses from the past 12 months — use actual statements rather than a remembered estimate.

$
$0.00
EXPENSES − GUARANTEED INCOME = MONTHLY INCOME GAP
$0.00
This is the number your portfolio must produce every single month. Every calculation that follows is built from it. If it is zero or negative, your guaranteed income covers your expenses and your challenge is tax and inflation management rather than income security.
STEP THREEYour Account Inventory

List every investment account you currently hold, with its institution, current balance, and how it is invested.

Account TypeInstitutionCurrent BalanceHow Invested
Traditional IRA
$
Roth IRA
$
401(k) / 403(b)
$
Brokerage (taxable)
$
Savings / Money Market
$
Other account
$
Other account
$
TOTAL INVESTABLE ASSETS $0.00
STEP FOURYour Stage Targets

This step calculates how much money belongs in each stage of the three-stage structure, based on your specific income gap. The result fields fill in automatically.

$0.00

Stage One Target — Near-Term Income (Years 1–5)

Income your portfolio must produce for the first five years. Must not be market-exposed.

Monthly Income Gap × 60 = Stage One Target 60 = five years × twelve months, sized to cover a realistic sequence-of-returns period.
$0.00

Stage Two Target — Inflation Bridge (Years 5–15)

Grows now so its income at handoff is sized for the cost of living at that point.

A Project the gap 5 yrs forward: Monthly Gap × 1.16 (≈ 3% inflation)
$0.00
B Annual need at handoff: Projected Monthly Gap × 12
$0.00
C Annual need × 10, then + 20% buffer  =  Stage Two Target
$0.00

Stage Three — Long-Term Growth (Years 15+)

Everything remaining after Stages One and Two are funded. Positioned for growth.

Total Investable Assets − Stage One Target − Stage Two Target
$0.00
STEP FIVEYour Gap Analysis

Compare what your accounts currently hold against what each stage requires. Enter your current amounts; the Gap column calculates itself.

StageTargetCurrentGap
Stage One Market-protected instruments (savings, CDs, money market, short-term bonds, fixed annuity). $0.00
$
 $0.00
Stage Two Moderate-growth, ten-year-horizon instruments. $0.00
$
 $0.00
Stage Three Long-term growth instruments (equities, diversified growth funds). $0.00
$
 $0.00
What a positive gap means. Stage One gap > 0: near-term income is exposed to market risk. Stage Two gap > 0: the inflation bridge is underfunded. Stage Three under-allocated: long-term compounding is limited by over-conservative positioning.
YOUR INCOME AUDIT SUMMARY

MONTHLY INCOME GAP

$0.00
The amount your portfolio must produce each month.

TOTAL INVESTABLE ASSETS

$0.00
The pool divided across the three stages.

STAGE ONE TARGET (Years 1–5)

$0.00
Near-term income to keep out of the market.

STAGE TWO TARGET (Years 5–15)

$0.00
The inflation bridge that grows toward later years.

STAGE THREE (Years 15+)

$0.00
What remains, positioned for long-term growth.

YOUR STAGE GAPS

Stage One gap$0.00
Stage Two gap$0.00
Stage Three diff.$0.00

YOUR NEXT STEP

The Income Audit produces a picture. Turning it into an implemented plan takes one conversation — where your account types, tax situation, and income needs are matched to the right vehicles for each stage.

Schedule a complimentary conversation: ludwigwm.com · info@ludwigwm.com · Call/Text: (630) 519-3131

The Income Audit Workbook · Ludwig Wealth Management · ludwigwm.com