A proper retirement strategy should have two important phases. One is the Investment Planning Phase (Accumulation Phase) and the other is the Income Planning Phase (Distribution Phase). Many advisors focus on one or the other when they should be focusing on both. We help people transition from the Accumulation Phase to the Distribution Phase, and help navigate them through the hurdles that they will encounter as they begin to take this income.
Investment Planning (Accumulation Phase)
The vast majority of all investors would like to have the perfect investment as a part of their portfolio. This perfect investment would have no risk and would never lose in value. It would also have unlimited growth potential and would show consistent gains each year. This investment would also be totally liquid and we could always get our hands on the money. Unfortunately, this perfect investment does not exist. In order to gain in one area, many times you have to give up in another area. Our job as the advisor is to takes into consideration the goals and needs of each client and come up with the strategy that provides the features needed to best meet those goals.
We provide numerous investment opportunities for our clients and help put into place the ones that might fit their given situation. Besides the traditional investment tools such as stocks, bonds, mutual funds, and annuities we offer some more specialized approaches. One of these is a formulaic investment strategy that takes the emotions out of investing. This strategy uses market trending and pre-designed criteria for investment decisions.
Income Planning (Distribution Phase)
"Am I going to run out of money?" This is the age old question that almost all retirees are asking. This is, no doubt, a very serious concern of all people entering the distribution phase of their retirement. Many retirees are not aware of the hurdles that may occur during this phase. Many experts will tell you that this phase is where clients' best laid out investment plans tend to falter. This is usually because there is a whole different approach that needs to be taken in the distribution phase of their retirement than was taken in the accumulation phase. We feel like that this is an area that we have some very special skills and tools to help a client succeed. One of our most utilized tools is the Asset Cycle Portfolio System developed by USA Financial. This system allows us to put together a plan that can give clients a predictable income stream along with long term sustainability. We find that it is very important for our clients to know where the next retirement paycheck will come from. With our knowledge, skills, and tools we feel we can help the client to develop a plan that will help bring confidence as they move into this part of retirement.
In creating a proper legacy plan there are three main areas that need to be addressed. One is life insurance planning, another area is long term care planning, and the third is estate planning. All three of these areas involve some type of asset protection. Unfortunately, many people do not plan for the expected or unexpected roadblocks that can totally destroy the best financial plan. A long term illness or sudden death of a loved one are both unexpected, but inflation and taxes are both expected, but sometimes ignored. Let's take a look at how each of these areas when properly planned for can keep a sound financial plan on track.
Life Insurance Planning - Life insurance can fill a number of needs. It can be used for income replacement in case of a sudden death, it can pay off a mortgage that would not need to fall back on a loved one, or you can leave a legacy to family, university, church, or charity. We have several tools that can help determine how much life insurance you need. Contact us if you would like a life insurance analysis or quote.
Long Term Care Planning - Long term care expenses incurred either at home or in a facility are, in many cases, an unexpected burden on one's retirement. Let us provide a plan for you to minimize the risk that this expense can inflict on your retirement plan. There is the traditional long term care insurance and other asset-based strategies that are available. Let us know how we can help you in planning to keep this burden off your hard earned assets.
Estate Planning - Estate tax laws and guidelines are ever-changing. It is important that you seek professional guidance as you strive to create a plan to minimize the tax effect that your estate may face in the future. If you would like to talk to a qualified legal professional regarding general estate planning please contact us and we will put you in touch with one.
As a professional planning firm, we feel that it is very important to help our clients reduce their tax bill not only today, but also down the road. We feel that it is just as important "what you keep" as to "what you make." Whether you are in the accumulation stage or the distribution stage of retirement, we feel it is important to reduce your tax bill whenever possible. Many advisors will do an excellent job in helping you plan for a good income in retirement, but sometimes do not factor in the effects of things like taxes or inflation. Allow us to keep you focused not only on growing your nest egg but also protecting it from the effects of taxes.