HOW ARE WE DIFFERENT?
OUR PROPRIETARY TOOLS
THE RETIREMENT BALANCING ACT™
The truth is retirement is a balancing act. It is important to understand the key drivers of a successful retirement. Those drivers, as shown below, allow our clients to decide what is important to them. For example, if our client tests for a low risk and low return portfolio how does that relate to their spending requirement. Usually, a high spending requirement combined with a low return assumption may not pencil out over the long term and vis-versa. By having these conversations our clients can make decisions today so they can design their future for a more likely successful retirement.
BALANCING A PERSONAL RETIREMENT STRATEGY
THE RETIREMENT SHOCK ABSORBER®
The Retirement Shock Absorber® is a proprietary financial and retirement planning tool we utilize
to help plan for the unavoidable events we experience in life and the markets. Early in Mark’s career, it was quite clear that the news that drove the markets was always a surprise. Every year something would come out of left field, both positive and negative, that it had a big impact on markets. Mark decided that a system needed to be created so that he could help retire his clients with confidence taking into account future bumps in the road. In times of volatility, wise investors know to avoid the emotional decisions that may negatively impact a portfolio over the long-term. The Retirement Shock Absorber® is built with the objective to help families maintain their lifestyle and financial goals, regardless of the economy or markets.
INVEST WITH A PLAN™
Illustrates a Hypothetical Retirement Plan and Portfolio within the context of a constantly fluctuating market environment without the benefit of buffer against the inevitable and uneven market fluctuations that occur in reality.
Illustrates a Hypothetical Retirement Plan that takes into account the unpredictable nature of the markets by applying The Retirement Shock Absorber®.
THE WITHDRAWAL STRESS TEST™
The Withdrawal Stress Test™ helps determine your portfolio’s sustainability over the course of your retirement
and lifespan. Your withdrawal rate is calculated by dividing total annual withdrawals by your portfolio value. The lower the withdrawal rate, the more flexible your portfolio allocation and risk can be. Emotions aside, if you are only taking out 1% of your portfolio every year you have the choice to take on more equity risk for higher future growth or the exact opposite, take lower risk with lower corresponding returns. For most people, it seems 3-4% withdrawal rate is pretty typical or $30,000-$40,000 per $1,000,000 per year. Because inflation is a big factor some piece of returns are assumed to be reinvested as the cost of living has typically doubled every 20 years. Remember your first new car and what it cost then vs. today.
THE DISTRIBUTION PHASE OF A PLAN
This chart illustrates the theoretical sustainability of an investor’s portfolio depending on the rate of withdrawal. Theoretically, a portfolio with a lower withdrawal rate is likely more sustainable over a longer time-frame. In addition, a lower withdrawal rate affords the investor the ability to likely withstand more stock market volatility.
THE RETIREMENT TAX FILTER®
Our comprehensive wealth management approach includes evaluating your composite income
sources within your tax liability landscape. Through this inclusive perspective, we can best determine
your tax situation and provide you solutions, such as yearly tax-loss harvesting to offset
taxable gains or other strategies that may help minimize your tax gain.
RETURN OF BASIS
INTEREST & DIVIDENDS
PENSION & SOCIAL SECURITY
TURN ON OR OFF FLEXIBLE SOURCES OF INCOME
GOAL: MINIMIZE TAXES
BENEFIT: LESS TAXES = MORE MONEY
THEREFORE, MORE OPPORTUNITY TO DO THE THINGS YOU WANT TO DO
THE BUYOUT BAROMETER®
The Buyout Barometer® is our proprietary tool that helps business owners assess whether they
can sell their business and confidently pursue a successful, streamlined retirement.