More than ever before, retirees are dependent upon their investments to generate retirement income. Yesterday’s retirees could count on as much as 80% of their post retirement income being provided by employer sponsored pension and Social Security benefits. However, today’s retirees may be challenged as no recent generation has. A “Perfect storm” has emerged comprised of changes in retirement benefits, low interest rates environment, volatile stock markets, and last but not least, unprecedented longevity. 

 

More than ever before retirees are dependent upon their investments to generate retirement income. Companies have forced their employees to assume the investment risk associated with their retirement assets. In addition, interest rates levels not seen since the Eisenhower administration have reduced the current income that can be gained from many savings vehicles. Retirees are thus challenged to find ways to boost levels of current income without taking on undue risk.

           

The facts indicate that during the period between 1985-2004, the S&P 500 grew on average by 13.2% annually. However, during this era known as “America’s Greatest Bull Market” the average equity mutual fund investor averaged only 3.7%*. Why? Several possible reasons have been cited: 1. Lack of strategy - individuals chased performance and become integral players in momentum driven markets. 2. Lack of Patience – with the average mutual fund position held for just two years, investors did not give their investment decisions sufficient time. 3. Emotions – many investors succumbed to emotionally-based-decisions-making driven first by greed and then followed by fear.  

 

Therefore, it is imperative that you seek an investment approach that offers a degree of safety, but also provides growth opportunities to meet income needs throughout your retirement years. To help overcome these problems, while at the same time preparing for retirement we offer a two phased approach. Using this process cannot guarantee that you will achieve your ultimate goal, however as part of a well thought out approach to investing, using sophisticated state of the art methodology, we feel it has a higher probability of aceiving your desired results. 

 

 

During this period of time it is essential that a strategic combination of asset allocation and product selection be employed to facilitate attaining the following goals: 

 

In order to provide income for your retirement years we have developed an investment approach that divides you investments in to six (6) distinct segments that will hold invested assets ranging from very conservative to aggressive. Segment one, the most conservative, receives the largest portion of your savings, successive segments receive varying lesser percentages of deposits. The segments receiving the smallest amount of money are those which hold progressively more aggressive assets. These segments will be held for the longest period of time in order to achieve the best possible chance of excellent investment results.

 

Initially, a guaranteed** income strategy is provided by utilizing very conservitive investments for a period of sixty months. For each subsequent five-year period, additional segments will be successively converted into guaranteed** income strategy with payouts of sixty months. Should the projected rates of return be realized in the various segments, sufficient money will be available to implement guaranteed income strategies in amounts capable of providing an increasing level of retirement income.

 

Segment six is shown as a hedge against you living beyond twenty-five years from the date of inception. If that segment meats its projected rate of return, it will hold sufficient assets to continue an income stream. At your death, any remaining assets will pass to your beneficiaries. Learn more  about Phase II and the Income For Life Model™...

*2005 Dalbar and Associates study of investor behavior.
**All guarantees are backed by the claims-paying ability of the issuing insurance company and involve fixed annuities.