About the service
This service combines two essential elements of income stability: diversification to protect your capital from market swings, and annuities to create an assured income floor you can rely on.
The Dual Pillars of Retirement Security
Achieving lasting financial independence requires moving beyond simple accumulation. It demands a sophisticated strategy focused on protecting capital and generating reliable income. Our service focuses on the symbiotic relationship between diversification—protecting your principal—and annuities—guaranteeing your future paychecks.
Rethinking Diversification for Decumulation
Traditional diversification aims for growth; retirement diversification targets stability and income generation. We employ advanced portfolio strategies specifically designed to reduce the sequence-of-returns risk—the danger of market downturns early in retirement.
- Strategic Asset Allocation: We use a time-segmented approach, often called the 'bucket strategy', to align specific assets with specific time horizons.
- Bucket 1 (0-5 Years): Liquidity and cash reserves for immediate needs.
- Bucket 2 (6-15 Years): Fixed income and moderate growth for stability.
- Bucket 3 (15+ Years): Growth-oriented assets for inflation protection and long-term viability.
- Income-Generating Investments: Shifting the portfolio focus toward high-quality bonds, dividend stocks, and alternative fixed-income vehicles to create natural cash flow.
- Tax-Location Optimization: Strategically placing tax-inefficient assets (like bonds) in tax-sheltered accounts (like IRAs) and growth-oriented assets in taxable accounts, improving overall tax efficiency.
Strategic Integration of Annuities
We provide objective, educational guidance on how annuities fit into your retirement income vision. We help you understand the trade-offs between liquidity and guarantees, ensuring any annuity purchase serves a specific, protective role in your overall plan.
- Longevity Risk Mitigation: Using deferred income annuities (DIAs) or qualified longevity annuity contracts (QLACs) to ensure income coverage well into advanced age.
- Guaranteed Income Floor: Establishing an immediate annuity to cover essential, non-negotiable monthly expenses, regardless of market performance.
- Product Analysis and Education: Detailed education on different annuity types (Fixed, Fixed Index, Variable) to ensure you choose the product that aligns perfectly with your risk tolerance and need for sustainable income streams.
By mastering both diversification and the strategic use of guaranteed products, we build a financial structure designed for both resilience and peace of mind.
