As part of our Advanced Financial Planning process, we recognized over 20 years ago as the Baby Boom tsunami was preparing to retire there was no clear process to coordinate pre-retirement to post-retirement and on. People planned to retire in their 50’s instead of waiting until age 65. This created a shorter time frame to save and a longer period of time to withdraw income from one’s assets.

Pre-Retirement Phase

We coordinate legal and tax planning and make sure we have a complete understanding of the benefits made available by a client’s employer. In many cases, we meet with an employee years in advance of their planned retirement on a regular basis (six times annually) to make any adjustments necessary as they move towards retirement. These adjustments include allocating and rebalancing their employer sponsored retirement plans on a systematic basis.

When a client enters retirement, we establish a Formal Written Plan. This is generally when the client begins Phase I.

Phase I

Is built with flexibility; most people retire prior to being eligible for Social Security benefit payments- leaving their income from investments as the only source of cash flow.

Phase II

When social security and or pension benefits begin. We emphasize mitigating the tax impact as much as possible. Risk Management is Phase II’s theme. There is a structured process increasing the portion of the investment to guarantees as we move towards Phase III.

Phase III

Is designed to outlast the retiree. Minimum Required Distributions come into play during this phase. In some instances, income tax brackets and Medicare Part B premiums will increase. We refer to this phase as the “don’t run out of money” phase.

As a client progresses through these phases, annual addendums are added to the original plan. Adjustments are made to personalized portfolios when there is a change in the client’s life, a change in the client’s phase, a change in client’s needs, and when the market conditions warrant. We pride ourselves on knowing our client very well. As long as you don’t surprise us, we won’t surprise you! Without these surprises, we are able to manage the client’s assets and make sure that the assets outlive them; not the other way around.