Retirement Income Distribution Strategy

 

You worked hard for most of your adult life.

You acted responsibly.

You planned and saved just as you were advised.

You did your part.

Will your hard-earned savings provide the income for the lifestyle you were counting on?

The reason your savings may not last is due to the money printing policies of the U.S. Government, led by the Federal Reserve and followed by Central Bankers around the world. These policies purposely intended to bring interest rates to near zero in order to stimulate the world economy in reaction to the severe economic stress caused by the financial crisis of 2008. The consequences of this action have been devastating to retirees and conservative investors like you. The low rates are penalizing "savers" such as seniors and others on fixed incomes. This, in turn, forces millions of middle-class Americans to reconsider how they will live when they retire if they can retire at all! In contrast, this policy has created bargains for borrowers refinancing a mortgage or buying a car.

Past generations had the ability to simply park their money in money market accounts, Bank CDs, U.S.Treasuries, and investment-grade bonds and earn 5% or more, but that kind of strategy is nonexistent today because of continued low-interest rates. Roger Aliaga-Diaz, a senior economist at the mutual fund giant, Vanguard Group, said he expects investment-grade bond portfolios to average returns of 2-3% for the next 10 years! The search for “safe yield” continues to be a challenge and it’s a trend that won’t quickly reverse itself.

The greatest challenge facing retirees’ ability to sustain their retirement income is today’s low-yield environment. Most retirees had planned on returns of 5-7% on their investments but are now only receiving 2-5%. Will that be enough for your lifestyle?

Fleet Wealth Management Group TM can help you financially plan your retirement income with clarity. We are here to help you secure your future. The Fleet Group is a trusted retirement income planner that understands the emotional and psychological stress retirement may bring. We have developed several proprietary income portfolios to help our clients meet their income needs. These income portfolios are built around each client's individual goals and financial resources. Our approach is solving our clients' needs by maximizing their income with a diversified portfolio of high-yielding instruments. We manage the risk through diversification, portfolio rebalancing, and introducing dividend growing components within the portfolio. We recognize that the overall portfolio value may have occasional variances, which we embrace by constant monitoring and risk managing. Our portfolios are put together across multiple income-producing opportunities, to limit each individual's concentration and ensure sufficient liquidity at all times.

We think of retirees’ financial assets as a set of concentric circles, with the innermost one serving as a monetary nucleus performing to satisfy the most basic and necessary needs,  i.e., generating cash for servicing your basic daily needs. Every subsequent outer layer of your financial wealth can be thought of as a vehicle to generate either extra income by deploying it into more aggressive income opportunities or investing in various capital appreciation/growth strategies.

We believe that our unique proprietary approach to structuring an income portfolio will provide the cash flow you need to support the lifestyle you were planning to enjoy.

If you would like the opportunity to see how Fleet's proprietary income approach can benefit your income needs, please book a free no-obligation consultation and analysis to see how our tailor-made proprietary income strategies can increase your income.