We realize the potential positive impact of generating a solid Financial Planning Strategy for our clients. We offer a full range of services including Income Distribution and Financial Planning Solutions.
With improvements in healthcare, diet and exercise habits, Americans are generally living longer lives and enjoying more active and vibrant retirements. Early Retirement has also become more common, thus resulting in many retirees facing the challenge of not outliving their retirement assets.
Income Distribution Planning is the process by which the assets you collected as you were preparing for Retirement (the Accumulation Phase) are paid out to you during your Retirement (the Distribution Phase). The strategies that you used during the Accumulation Phase are very different than the strategies that you would use during the Distribution Phase.
The assets from which you expect to create a vital stream of income during Retirement face risk from economic turmoil, interest rate uncertainty and market volatility. It is vital to correctly position your accumulated assets into a series of investments at retirement that is designed to provide you income for your lifetime.
The process that we use is called the NextPhase™ Retirement Income Financial Planning Process; it is a time-segmented, inflation-adjusted strategy that is designed to help you find a balance of investment choices with different, complementary risk and growth opportunities. The graph below illustrates how your accumulated retirement assets are divided into different time-segments. The optional Guaranteed Income Segment and the First Pool are designed to offer immediate, regular income streams, while the other pools of investments are designed to grow over time. As time goes on, each pool is drained to fill the reservoir that provides your regular income stream. The strategy typically plans for 25 years, at which point the Last Pool can be divided up again to provide for a longer retirement or used for Legacy Planning.
*The Graphic is used for illustration of a Time-segmented Distribution Strategy only. This information should not be construed as a recommendation of this investment plan for all Investors. There is no guarantee that any or all segments will obtain their desired results. If desired returns are not met in any investment segment this could cause the investor to run out of income before the end of that income segment. To continue drawing income the Investor may have to remove funds from other investment segments before scheduled. This action could lead to additional fees and ultimately the failure of the plan to meet the original objectives. Investors may have to adjust their Income amounts to compensate for any investment segment not meeting its goal in order for the actual cash value to last the duration of that income segment.
If you are within ten years of retiring or have retired within the last five years, talk to us today about creating your customized NextPhase Retirement Income Plan.
Disclosure: Guaranteed Income Stream – The Guaranteed Income Stream Investment vehicle that overlays the six allocation pools (when suitable and used in the NextPhase™ Plan) is a Variable Annuity with a Guaranteed Minimum Withdrawal Benefit.
Asset Allocation does not guarantee a profit or protection from losses in a declining market. Investments in Model Strategies have additional management fees and expose the Investor to the risks inherent within the model and the specific risks of the underlying funds directly proportionate to their fund allocation. All investments not just Securities involve the risk of potential investment losses. Investment returns, particularly over shorter time periods are highly dependent on trends in the various investment markets. The Investor may receive less than the original invested amount and is advised to consider the investment objective and risks before investing.
*Guaranteed Monthly Income is based on current values as well as the terms and conditions of an Annuity contract or optional rider. These advantages may have additional fees and can only be fully realized if you follow the benefit’s rules and hold the Annuity through to the Surrender Period. Guaranteed Income and Principal are based on the claims paying ability of the issuing company. Annuities are long term investments designed for retirement purposes. Withdrawals of taxable amounts are subject to Income Tax, and, if taken prior to age 59 1/2, a 10% Federal Tax Penalty may apply. Early withdrawals may be subject to Withdrawal Charges. Single Premium Immediate Annuity contracts cannot be surrendered once Annuitized. The purchase of a Variable Annuity is not required for, and is not a term of, the provision of any Financial Service or activity.
Purchase of an Annuity contract through a Qualified Plan (ie. IRA) does not provide any additional tax-deferral benefits beyond those already provided through the Qualified Plan. If you are purchasing an Annuity contract through a Plan, you should consider purchasing it for its death benefit, annuity options and other non-tax-related benefits.
Variable Annuities and Mutual Funds are investments involving risk and are offered by prospectus only. Before investing, Investors should carefully consider the investment objectives, risk, charges and expenses of the investment and its underlying investment options. The prospectuses contain this and other important information. Please contact your Representative or the Investment Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Investments in Mutual Funds are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although Money Market Funds seek to preserve their value at $1.00 per share, it is possible to lose money by investing in money market funds.
Investments in Real Estate or REITs may not be suitable for all Investors and is subject to significant risks. These risks may include limited operating history, reliance on the Investment Advisor, potential conflicts of interest, payment of substantial fees to the Investment Advisor and its affiliates, potential illiquidity and liquidation at less than the original amount invested.
*Purchasing Certificates of Deposit - CDs involves a number of risks. It is suggested that prospective Depositors reach a purchase decision only after careful consideration with their Financial, Legal, Accounting, Tax and other Advisors regarding the suitability of the CDs in light of their particular circumstances.
*You must evaluate whether a Bond Ladder and the Securities held are consistent with your investment objectives, risk tolerance, and financial circumstances. If you decide to include Callable Bonds in your ladder, these bonds may be called prior to Maturity. If a Bond is called, your investment payments cease and the Principal is returned as of the call date. If you seek to reinvest the Principal in a similar Bond Issue, you will likely have to accept a lower yield (and lower interest payments) consistent with prevailing Interest Rates.
*Investments in Fixed Income products are subject to market risk, credit risk and special tax liabilities. Any Fixed Income Security sold prior to maturity may be subject to a substantial and taxable gain or loss.
Structured products typically pay an Interest or Coupon Rate above the prevailing market rates and limit upside participation in the referenced asset if principal protection is offered or if the Security pays an above-market interest rate. Risks may include loss of Principal and the possibility that at expiration the Investor will own the referenced asset at the depressed price. Other factors that may affect the investment value of the Structured product include: interest rates, volatility of the underlying asset, liquidity and time remaining until maturity. Structured investments are generally backed by the issuing firm which may or may not maintain a secondary market.
Investments are not FDIC or NCUA insured, are not Bank or Credit Union Guaranteed and may lose value.
Guarantees including optional benefits may have an extra fee and are subject to exclusions, limitations, reductions of benefits and terms for keeping them in force. Your Licensed Financial Professional can provide you with complete details. The benefit payment obligations arising under the Annuity contract Guarantees, rider guarantees, or optional benefits and any fixed account crediting rates or Annuity payout rates are backed by the claims-paying ability of the issuing insurance company. Those payments and the responsibility to make them are not the obligations of the Third Party Broker/Dealer from which the Annuity is purchased or any of its affiliates.