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Our Retirement Income & Investment Strategy

There are many different financial advisors out there. At 80/20 Financial Services we specialize in retirement income and investment planning. And we specifically specialize in helping electric cooperative employees create investment plans to ensure they don't run out of money in retirement.

Just as you wouldn't go to your family doctor for heart surgery, you wouldn't want to go to a financial advisor that doesn't specialize in retirement planning if retirement planning is what you need.

Regarding our retirement income and investment planning approach, here is a summary of our strategy in simple terms.

The problem we help you solve is this:

How can we ensure the money you need today and in the near term is safe and predictable and not subject to temporary market fluctuations, while at the same time putting you in a position to receive the permanent market returns which are necessary to provide an income that increases and outpaces inflation?

We help you accomplish this with a 4 Portfolio Strategy as follows:

Portfolio #1 is built with very safe, secure investments that are designed to provide you with a dependable and predictable income for years 1-5 in retirement. (It will contain cash and/or cash equivalents such as Money Market Funds)

Portfolio #2 Since you have the first five years of income taken care of, we can choose investments that are designed to grow for five years and then provide income for years 6-10 in retirement. (It will contain bonds or bond equivalents)

*In years 1-10 of retirement our goal is predictable income.

Portfolio #3 Gives you a ten-year period for the investments to grow before you need the money for income. Therefore, we select investments that allow you to maximize your returns over that time frame. This money is designated for years 11-15 in retirement. (It will contain low-cost value oriented Mutual Funds containing the best companies in the United States and internationally.)

Portfolio #4 Works the same way as Portfolio #3 but you have 15 years or more to let it grow. This gives us the necessary time to withstand the fluctuations of more aggressive investments. This money is designated for retirement years 16 and up in retirement. (It will contain low-cost growth oriented Mutual Funds containing the best companies in the United States and internationally.)

*In years 11-30 of retirement our goal is creating income that has outpaced inflation.

Our strategy is not a one-time plan and we are done for the next 20-30 years. It's a fluid and adaptive strategy that changes with you and your needs. Your needs will change over time and so will your retirement plan. We will meet a minimum of once per year to update your plan.

Our goal

Our goal with this strategy is to help you avoid two of the most common problems a retiree faces in retirement.

1.) Spending too much and running out of money and purchasing power

2.) Spending too little and not taking advantage of the goals you had for your money

Our strategy is long term and not affected by day-to-day fluctuations of the stock market. Our retirement plans are designed with one thing in mind and that is to keep you as worry free as possible so that you can enjoy this time in your life that you have earned and deserve.

Very important:

What we CAN do for you:

•    We can help you identify your retirement goals, create a plan to achieve those goals and build a portfolio to accomplish our plan.

•    We can help you stick to your plan through all the stresses and strains of a 20–30-year retirement while updating your plan yearly as your life changes.

What we CAN’T do for you:

•    We cannot forecast the economy over the next year or the next. No one can. 

•    We cannot forecast markets or time markets. No one can.

•    We cannot predict which investments will outperform other investments on a yearly basis. No one can.

Goals, plan, portfolio

So once again our process is to identify your retirement goals, establish an income and investment plan to achieve them and then, and only then, we create a portfolio to carry out our plan. Goals, plan, portfolio... always in that order.

I hope you can clearly see the wisdom of our strategy. If you are nearing retirement or in retirement and would like help with your retirement planning we would look forward to visiting with you. You can see our entire process here.

There is no hard sell and nothing to buy. You have our word on that.

You need a plan

A goal of retiring - without a plan - is simply a plan to run out of money. At 80/20 Financial Services we work to insure the money you need in the early years of retirement is safe and not subject to temporary market fluctuations, while at the same time putting the money you'll need in the later years of retirement in a position to receive the long term market returns necessary to provide an income that increases and outpaces inflation.

For more articles about retirement planning and investing click here. 

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Brian Coleman/Retirement Income & Investment Planner

80/20 Financial Services is an Independent Registered Investment Advisor (RIA) registered in the state of Missouri (CRD# 300772). We work with clients in Missouri and throughout the United States. Being independent allows us to work exclusively for YOU.

We specialize in helping electric cooperative employees create their retirement income and investment plans. Retirement can last 20-30 years. You need a plan!

Photo by Maarten van den Heuvel on Unsplash