Step 1: Make the most of the things you can control but also evaluate factors that are somewhat or completely out of your control. You have total control over your asset allocation and discretionary expenses; some control over your tax burden, available assets and liquidity; and no control over market returns and tax policy/legislation.
Creating “Dry Powder” — Be opportunistic in the event of a market downturn.
Incorporating Alternatives – Consider incorporating hedged/non-correlated asset classes now.
Reviewing Stock to Bond Exposure — Consider historically low rates for bonds.
Cash Flow Planning — Know what you want to spend.
Evaluating the Comprehensive Balance Sheet
- Recommend debt be paid off.
- Complete a liquidity study.
- Turn on cash flow from annuities or pensions.
- Evaluate “secret weapons” that can be used in time of need.
Step 2: Utilize our innovative tools to evaluate the effects of various strategies and contingencies on your situation.
Withdrawal Stress Test™
- Construct a portfolio that is customized to meet your goals.
- Create an allocation that corresponds to your anticipated withdrawal rate as a percentage of your portfolio.
Retirement Balancing Act™
Understanding and establishing the right mix of risk tolerances, objectives, timelines and external factors allow us to shape a personalized retirement strategy suited to your priorities and your preferences. Our Retirement Balancing Act™ provides a steady and measured method for effectively managing the numerous factors impacting your retirement.
We collaborate with you and build a plan by evaluating the effects of those factors over which we have total control (discretionary spending and portfolio allocation) and those over which we have some control (income in retirement).
Retirement Tax Filter®
- Understand how taxes work as you transition from earned income in your working years to passive income in retirement.
- Pursue proactive cash flow management strategies that seek to max out lower brackets without creeping into higher brackets.
Retirement Shock Absorber®
We work with all of our clients to model hypothetical downturns and determine if your plan can withstand substantial market volatility.
View a Sample Recession Prep ScorecardTM