Retirement Planning

ISSUES OF CONCERN

Retirees are faced with an increasing number of complex obstacles.

 

These obstacles include, but are not limited to:
  • lifestyle choices
  • longer life spans (outliving your assets)
  • rising healthcare costs
  • investment risk in stock and bond markets
  • geopolitical news around the world
  • multigenerational financial obligations

  • concerns over insurance companies’ abilities to uphold long-term care coverages
  • rising interest rates
  • inflation (rising costs)
  • monetary policies by the Federal Reserve
  • fiscal policies by the White House and Congress


 

OUR PHILOSOPHY

Your investments should reflect your personalized financial objectives.

How do we help ensure this? The Friedman Wong Kafetz Group implements a customized Retirement Bucket System which segregates retirement assets into different portfolios to be drawn on sequentially. It is designed to provide flexibility in managing the obstacles you will face in various stages of retirement. Our system uses a time-segmented approach to asset allocation focused on better aligning your assets and needs.

We believe this system provides the transparency and clarity retirees need to understand and feel confident in overcoming their financial challenges and taking advantage of investment opportunities.


 

THE RETIREMENT BUCKET SYSTEM

Your retirement assets are segregated into buckets representing a time period of need. Investment allocations reflect personal risk tolerance, and the time period & objectives of each bucket. Periodic rebalancing and shifting of assets between buckets are necessary to adapt to obstacles. Each bucket has a component of safety, liquidity, income, growth, diversification, and risk management.


 

 

BUCKET

PURPOSE

TIME PERIOD

INVESTMENT TYPE
Examples

 


1
IMMEDIATE SPENDING

to close the income gap net after social security, pension income, and other predictable sources

3 to 12 months of expenses & anticipated needs

cash (fully liquid), short term CD’s (highly liquid), short term bonds

2
INTERMEDIATE NEEDS

to replenish Bucket 1 over the next 5 years while keeping up with inflation

1 to 5 years of expenses & anticipated needs

longer term CD’s, intermediate term bonds, high quality dividend stocks

3
INTERMEDIATE TO LONGER TERM INCOME NEEDS

to outpace inflation with additional growth

5 to 10 years of expenses & anticipated needs

diversified stock and bond portfolios (US & Foreign) and alternatives

4
LONG TERM INCOME NEEDS

to maintain growth of assets

10 to 20 years of expenses & anticipated needs

high-quality growth investments

5
LEGACY DESIRES

to designate specific assets as wealth distribution to loved ones

flexible

annuities, insurance, and investments

Steward Partners Global Advisory, LLC and The Friedman Wong Kafetz Group maintain a separate professional business relationship with, and our registered professionals offer securities through, Raymond James Financial Services, Inc., Member FINRA/SIPC. Investment advisory services offered through Steward Partners Investment Advisory, LLC. *Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success.
Copyright 2015 by Forging Bonds of Steel, LLC