Current strategies for tax optimization by asset location in after-tax, pre-tax, and tax-free (Roth) accounts are unchanged. Because of lower […]
Unlike most advisors, I put you, your family, and your goals at the center of the financial plan, not your investment account. I’m focused on achieving the most successful outcome for your lifetime plan, not on investment performance. Retirement is not the time to take extra risk stretching for returns. It’s the time to ensure that your plan will protect your lifestyle for the rest of your life and support the goals you have for family and legacy.
It’s not about the stock market–it’s about using all the resources on your household balance sheet to protect your lifestyle, longevity, liquidity, and legacy. When you have a plan that manages these major risks, you’ll no longer spend your days worrying about the stock market. Instead you’ll rest easy knowing that the methods we use to successfully reach your lifetime goals are not dependent on hot stocks or iffy portfolio strategies.
As an independent, I don’t sell the company line or push the most profitable product of the day. In fact, I don’t sell anything! I work solely for you, and instead of products I propose solutions to meet your goals. Together, we find the most efficient and economical way to implement those solutions, keeping more of your money working for you.
My duty as a fiduciary to you ensures that I have no hidden agendas, fees, or other arrangements–your interests come before mine. As a planner I take a broad, conscientious view of your whole financial and living situation so that your savings, investments, taxes, insurance, and estate plan all align with your lifetime goals for lifestyle, longevity, liquidity, and legacy.
From your income and expense cash flow, we get your balance sheet. Your balance sheet tells us how much of your savings is needed to cover your future living expenses–the Floor needed to support your lifestyle throughout a potentially long retirement.
We build the Floor with insured CDs, risk-free inflation-protected bonds, and low-cost immediate annuities so you can enjoy your life without the fear you can’t pay your bills. The Floor allocation of your savings is the foundation of a successful retirement. We start here, with Floor, with what is most important to you. Most financial advisors start with your investment account, with what is most important to them.
No one wants to outlive their money! Yet investment advisors would have you bet that the stock market will, with “high probability,” provide a lifetime of income. Except if it crashes. Then it might not. There’s a better way.
We work with you to maximize your household Social Security benefits and design insured long-term lifetime income that you cannot outlive. By devoting a portion of your savings to a Longevity allocation, the rest of your savings can work hard to protect your Floor and provide Upside growth.
We keep about one-to-two years of annual expenses in cash Reserves, replenished each year from the Floor. This gives you the liquidity to pay your bills and the unexpected expenses that arise in daily life.
If all of your savings are locked up in a stock and bond portfolio chasing higher returns, you could be at a serious disadvantage when you need money and the market is down. A proper Reserves allocation avoids that risk.[/
Investment advisors have all kinds of theories about “strategic allocations” for portfolios of stocks and bonds. Conservative/aggressive, age-in-bonds, glide paths, tactical management and so on and on. We let your balance sheet tell us what works best for you–it’s simple math. Once we have your future expenses covered by the Floor allocation, an insured Longevity allocation, and sufficient Reserves in cash, what’s leftover is your Upside.
Upside can be exposed to market risk for long-term growth and legacy without jeopardizing your lifestyle. With your lifestyle covered by the Floor, and with Longevity and Reserves in place, the rest of your savings can be invested in a low-cost global market portfolio of stocks, reliably earning market returns, year in, year out.
Then you can turn off CNBC, enjoy your life, and say goodbye to expensive fees from active investment managers who struggle to equal market returns while putting your lifestyle, longevity, and reserves at risk because they don’t understand your balance sheet and the fundamental role of Floor in retirement management.
Contact the Preserve Financial Advisory today for a plan that starts with your balance sheet, not the stock market, and manages all of your retirement goals, not just market performance.
An investment allocation of stocks, bonds, and cash may have worked while you were working, saving, and building your portfolio. Retirement is different. There’s no paycheck to cushion market shocks.
You need more than an investment allocation to secure your retirement years. A Retirement Policy Allocation provides the power to achieve a successful retirement. It uses your household balance sheet to determine the Floor necessary to support your lifestyle, the allocation to Longevity that will prevent you from running out of money, the Reserves you need to be liquid for current and unexpected expenses, and the Upside available on your balance sheet for growth and legacy.
You need a better way to manage all the risks you face in retirement than iffy risk tolerance quizzes, assumptions about conservative/aggressive investing, or glide paths. You need more than someone else’s idea of an investment allocation.
You need the power of a Retirement Policy Allocation that comes from a conscientious financial plan built from your household balance sheet. Your balance sheet. Your goals. Your retirement plan.
The Financial Preserve Blog
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Wall Street is selling wealth management by managing returns volatility when the vast majority of us probably need something else. Depending on where you are in the lifecycle, you likely will be better served managing savings or managing spending.
For existing portfolios I rebalance when Upside regional allocations fall more than 20% outside of their regional target percentage. This rebalancing allow us to add to those regions in the global market portfolio that are now selling at a lower cost—buying low—while we sell at higher prices those regions that exceed their targets by 20% when that occurs. Buy low, sell high!
Value averaging down increases market returns by lowering your basis. Dividends increase the total return further.
That’s how you catch a falling knife without bleeding. And that’s why this is a good time for those who have a strong balance sheet and a long-term plan to manage Upside, Floor, Longevity, and Reserves.
Most folks think investing is about picking stocks and dodging in and out of the market before the roof falls […]
You know that the fees you pay to invest your savings matter, and that these costs, even tiny percentages, can […]
Upside is the amount that can be exposed to market risk for growth without jeopardizing household lifestyle.
In the last post we saw that market returns (the mean) are higher than average fund returns (the median) because […]
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