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How do you control the market?

One way to control the market is through indexing. Indexing allows an investor to control the market with just the yield not the principal. The old method might work if you are in your 30’s and 40’s, but seniors realize that their nest-egg took a lifetime to create. If lost, there might not be enough time to accumulate a new one! As Preservation specialists, we teach our clients how to index their returns TO the market without having their principal IN the market! These clients do not lose principal, because we do not place it where it can be lost. Do not  misunderstand that last paragraph ... we still invest directly in the stock market, but generally recommend doing so after we have retirement income coming from indexing and pension-like strategies. And even then, for most clients, we utilize an investment proficiency of an institutional money manager skilled in finding income sources, globally AND actively managed.  



Unfortunately, greed plays an integral part in the mind of the many investors. Bad behavior can trump common sense when greed rules. Many believe; the higher the risk; the higher the reward. However, a return is ONLY a return when you are above where you started. Until then, it is simply a recovery. Do NOT mistake a recovery for a return! In order to avoid losing the money you desperately need in retirement, you will need to remove some risk from the equation. 

Proper Risk Ratio

Contrary to what some “annuity-only” salesmen believe, it IS OK to have some risk in one’s portfolio during retirement. However, having too much risk leading to large losses could wreak havoc on an income plan during retirement. Many people mistakenly believe they need to grow their nest egg to a specific number, and the commencement of their retirement is totally dependent on reaching that magical number. Then, as many found in 2002 and 2008, the number can be elusive, taking years to repair the account! We believe a better goal is to determine how much income is needed to retire comfortably. Once a retiree knows “their number,” we can determine their yearly spendable amount, adjust it for inflation periodically, and then set enough money aside into an insured I.L.I.P. (Inflation Laddered Income Plan). This money uses the same tables and expectations that corporate pensions use, so our clients might reasonably rely on this income for the rest of their lives. Whatever assets are left over after retirement income could then be re positioned at a lower, reasonable risk in hopes of greater returns. This money grows as part of a long-range plan for future opportunities, emergencies, heirs and/or charities. Our 3-Step Review process can help oversee this strategy calling for less risk. 

Investment Risk Review

Our Investment Risk Review allows us to carefully scrutinize a current portfolio to reveal exactly where it fits on the Pyramid of Investing. We unveil the current risk to help determine a proper ratio that will achieve retirement income goals, and then reposition the "at risk" assets into a lower cost, high dividend, and income producing position. The biggest step in determining a proper risk ratio is to know how much risk one is prepared to take to reach stated goals. Without an income plan in place for one’s retirement paycheck, one does not know if they are over-exposed to risk. Call to learn more about our 3 step review process. 

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"Roadmap to Retirement Income”
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    The 10 Things to Know About Planning Your Retirement Income Report is provided for informational purposes only. It is not intended to provide tax or legal advice. By requesting this report you may be provided with information regarding the purchase of insurance and investment products in the future.