to meet your goals.
Retirement planning isn’t just about investment accounts. It also involves a comprehensive review of all variables that affect one’s retirement success. Our objective in retirement planning is to provide the greatest level of certainty and clarity as you work toward and through the critical years of your working career.
The average American works 30-40 years toward a single goal: retirement. For some, that involves a slower pace of life and more days playing golf and fishing. For others, it’s the travel you and your spouse put off sending the kids to college. For yet others, retirement is giving back of your time to local non-profit or church organizations.
Whatever retirement aspirations may look like, our objective is to prepare your finances so that those dreams become reality. The sooner a person begins planning for retirement, the more control you can have in the ultimate outcome.
Retirement planning includes:
Possible care for aging parents or special needs children
Life-event risk (illness, disability, etc.)
Prioritization of lifetime gifting
(vs. legacy gifts)
Key investments we consider:
IRAs and Roth IRAs
Employer-sponsored 401(k) and 403(b) plans
Deferred Compensation Plans
Cash flow is critical...
- Today’s retired couple at age 65 has a 72% probability of one living past age 90 and 44% past age 95
- Pensions are far less prevalent than they were a generation ago
- Many investors are reluctant to include full social security benefits in their projections
- Inflation has again resurfaced as a serious challenge to income-sensitive investors
- The portfolio constructs that have worked for the past 40 years (i.e. 60 stocks/40 bonds) may yield lesser results over the coming decades
The HIP approach to cash flow…
- Retirement doesn’t equal the end of owning equities…instead many investors are well served owning a higher percentage in stocks than they might otherwise be inclined
- Traditional sources of investment income alone do not provide the best probability of sustained cash flow in today’s environment (see chart below)
The chart below shows “eras” of bond returns and how different the 1942-1968 period was from what most of today’s investors have encountered. Bonds don’t always post a positive return (the Barclay’s AGG was negative in 2021 and 2022). If not properly understood and actively managed, bonds can serve as a drag on one’s portfolio during a rising rate cycle and beyond.