Retirement Efficiency Assessment



46602190 “The Unexamined Decision Isn’t Worth Making.”00 “The Unexamined Decision Isn’t Worth Making.”left250002514600Retirement Efficiency Assessment900007300Retirement Efficiency Assessmentleft72834500-43815212852000Retirement Efficiency Assessment (REA)TMA More Efficient and Sustainable Retirement Income for Life is Possible…a complimentary REA can show you howAt Retire Smart Network we like to say, “The unexamined decision isn’t worth making.” Clearly, one of the biggest challenges most people face in retirement is generating the income they need while preserving and protecting it for the rest of their lives. But what’s the best way to make this a reality? What are the right decisions to be made? Life, and retirement is about making the right decisions. And there’s no shortage of critical decisions to be made. Informed decisions are the most impactful on your financial security. A Retirement Efficiency Assessment performed by a qualified retirement planner can provide the data, information and guidance you need to make these decisions. When you’re ready for a sneak preview into your current and proposed retirement outcome, Retire Smart Network can hook you up.An REA Demonstrates the Value of “Retirement Optimized” Strategies on Your OutcomeGrowing a portfolio during your working years is easy in comparison to the complexities involved with proper retirement planning. Incorporating Multi-Disciplined Retirement Optimized StrategiesTM such as: portfolio risk reduction, Social Security timing, tax efficient withdrawal strategies, Roth conversions and out-of-the-box ideas such as reverse mortgages can have a profound effect on the success or failure of a retirement outcome. An REA will take your financial information and demonstrate the impact these strategies may have on your retirement outcome.With your completed REA you’ll have actionable insight to make educated and calculated decisions about your retirement. It’s a valuable exercise for you (and your spouse) to go through to benchmark your situation, begin the retirement conversation and as a basis for your retirement plan. It can also serve as a useful “2nd opinion” if you’re already working with another advisor.Note: In addition, preparing for healthcare costs (and navigating the Medicare maze), and safeguarding against potentially devastating long-term care needs are two other facets of retirement that must be addressed to properly “protect” your retirement assets. These risk management issues, while critical, are not part of a Retirement Efficiency Assessment. They can and should be, however, incorporated into a comprehensive plan. Sample Retirement Efficiency Assessment (REA) In the sample below you’ll see the impact of Multi-Discipline Retirement Strategies and the value that can be added to your retirement outcome based on an actual client’s financial situation. Current vs. Proposed Retirement EfficiencyMr. & Mrs. Details:Current Age: Mr. - 64Mrs. - 65Age at Retirement:?Mr. - 66Mrs. - 66Retirement Assets:?$757,442Monthly income desired at retirement:?$6,000 (net in your pocket income)Expected inflation rate:?3%Extra health care expenses in retirement: $10,466/yr. (per couple) @ 3% inflationary increases1Projection end age: 95Mr. & Mrs.’ Results:Our Retirement Success Ratio (RSR) is a measure of the probability that your retirement assets will last until the age of 95. Mr. & Mrs.’ Current RSR: 59% (based on a traditional investment only strategy)Proposed RSR: 99% (based on MDRS)Employing the below “retirement optimized” Multi-Discipline Retirement Strategies can potentially increase the probability of your retirement success (meaning not running out of money) from 59% to 99%. Here’s how:Portfolio Design & Risk Reduction - Constructing a lower risk portfolio increases RSR from 59% to 82%.A Hybrid Income PortfolioTM (HIP) optimizes your allocations and reduces risk and volatility, creating an 82% RSR. A traditional investment strategy yields a 59% RSR. Risk reduction in the HIP is achieved by allocating 45% of the portfolio to diversified stocks and 55% to high-quality, low cost FIAs. A traditional strategy invests in 60% stocks and 40% bonds. Note: in some cases, depending the individual’s situation, structured investments are also included in the HIP.Optimized Social Security Filing - Proper Social Security income filing increases the RSR from 82% to 92%.By choosing the proper timing and filing strategy for your Social Security benefit, RSR rises by another 10%. Prudent Use of Home Equity (utilizing a HECM Loan) - Using home equity increases the RSR from 92% to 99%.By incorporating a Reverse Mortgage (based on home value of $400,000) a tenure payment of $9,600/year of tax-free income is generated and the RSR rises by at least another 7%.In addition to an increased RSR, deploying our Tax Planning strategies can potentially increase the value of your portfolio. Here’s how:Intelligent Roth Conversions combined with Tax-Efficient Portfolio Withdrawal Sequencing - Tax efficient withdrawals increases portfolio value by $657,425By converting to a 22% tax bracket with tax efficient conversions from 2020-2022, portfolio value is increased by $657,425 (versus a pro-rata withdrawal strategy and no Roth conversions). SummaryA combination of the four strategies above will increase your probability of retirement success from 59% to 99%. In addition, proper tax planning will potentially increase your portfolio value by over $657,425. Current RSR = 59% >>>> Proposed RSR = 99%, plus $657,425 additional portfolio value To obtain these results you must be open-minded to some new ideas (unique to retirement and the distribution phase of your life). Just as important, you must desire an efficient and sustainable retirement income for life. You must also become educated on each strategy and then follow through on implementing the recommended strategies. Our recommended process, based on the concept of knowing more and having more, provides academic, research-backed strategies designed to ensure a high probability of retirement success! We look forward to guiding you in the right direction and setting up your Retirement Efficiency Assessment.Reach out to a Retire Smart Network “RetireMentor” today to get startedcenter24066500Retire Smart Network is taking a fresh approach to financial wellness in retirement. It’s based on answering your most pressing questions and helping you make smart, informed financial decisions. Leveraging proprietary software and connecting you with retirement pro’s and resources, our mission is to make sure you actually create and implement a retirement plan you not only understand, but have 100% confidence in. We truly believe you can know more and have more…now and in retirement. Services are offered to anyone, anywhere within the United States. 508.798.5115 - help@“Most advisors concentrate solely on managing investments. They don’t incorporate all the intricate retirement strategies that must be utilized to dramatically increase the probability of a retiree’s success.”? -Dr. Wade Pfau, Phd, Retirement Researcher ................
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