Wealth Management
What Is Wealth Management?
Wealth management is a term for helping clients with their finances. Specifically, we focus on wealth management strategies in retirement. Our firm does more than just sell insurance products or financial services. Instead, we make sure our clients’ needs come first. In fact, we are duty-bound to do so. Protection should be part of a retirement strategy. Our team can help you discover, “what is wealth management” for you and your situation.
Why We Do What We Do
Pete has been helping people with wealth strategies since 1986. He has studied (and continues to study) macroeconomics and is an avid reader. Mostly, we do the work we do because we believe people deserve a plan. A comfortable retirement doesn’t happen by chance. Instead, it happens with a focus, a plan, and a desire to learn about your options. When you know your choices, you may be able to create better strategies. We care about helping you make the right choices for your financial future. Indeed, a comfortable retirement is possible with the right circumstances.
Some areas we work to help retirees understand are:
- What is wealth management and how might it help in your situation?
- Possible steps towards a protected retirement
- Fees and commissions – how financial professionals get paid
- Risks of market participation
- Retirement does not have to be complex
The Many Facets of Wealth Management
Retirement has many choices. First, you can get informed. We offer seminars and workshops to help you learn. Then, if you choose, you may meet with us. In our meeting, we can go over the answers to “what is wealth management,” including:
- retirement accounts: 401(k), IRA, 403(b), and more
- options for tax-deferred (or possibly tax-free) income
- required withdrawals (RMDs)
- income planning
- the income “cliff”
- what happens to your income if your spouse dies?
- beneficiary plans
- investment risks
- answers to your individual retirement questions
- income calculations
- protection for your principal
Risk In Retirement
One way to look at risk in retirement is the “rule of 100.” Indeed, this rule may help you balance protection of principal with risk. As you age, how much of your money do you want at risk? The rule of 100 gives us a math formula to guide retirees. First, subtract your age number from 100. Then, convert your answer into a percentage. This will give you a guide as to the maximum amount you may want to invest. The amount left over is how much should be kept “safe.”
For instance, if you are 72 years old, here is how the rule of 100 would play out:
100 - 72 = 28
The rule of 100 here says that the maximum percentage of at-risk money in the portfolio should be 28% or less. Then, at least 72% should be kept in stable retirement strategies. Therefore, more money in this case is being protected. This may be useful, especially as you age. Why? Because the older we are, the more reliant we are on the resources we have left. Taking a loss at an older age may mean that the money does not have the time to recover. For example, if a retirement account was invested with high risk and went down in value, the retiree may not have time to raise the value back up. Instead, this person may run out of money if they do not properly plan.
Your Wealth, Your Plan
Our bias towards strategies of safety and protection also happens within our wealth management services. We are here to guide you through the choices you have. Also, we work to help you understand more about financial products and services. We believe that you deserve information and know all your risks before making a decision. Let’s work together to help you plan for a comfortable retirement.
