Certified Financial Planner (CFP) Exam 2025 – 400 Free Practice Questions to Pass the Exam

To achieve their desired after-tax income of $180,000 in retirement, Kevin and Anne need to consider all sources of their current income, including bonuses and stock options, as these are significant components of their overall earnings. Bonuses can provide a substantial boost to their income during their working years, which will be crucial as they plan for retirement. If they are able to save effectively from these earnings, it could enhance their retirement portfolio and help them reach their income goals.

Understanding their current income sources helps them to project how much they need to save or invest to ensure they can generate the necessary income in retirement. In addition, considering bonuses and stock options can help them recognize any tax implications that may arise, as these may be taxed differently than regular income.

While long-term capital gains, federal tax bracket adjustments, and retirement account distributions are all important aspects of tax planning and retirement income, they are less directly tied to the current income level that Kevin and Anne need to consider when planning for retirement. Current employment income, especially variable components like bonuses and stock options, will determine how much they can save and how they may need to adjust their plans to meet their future income requirements.