We want to help you generate a sustainable income stream so you can:
- Maintain your desired standard of living
- Remain financially secure
- Leave a legacy, if desired
How can we make this happen? We have a process which includes asking questions and listening attentively. We then make “what if” projections, and based on our experience and judgement, we will recommend a specific course of action to you.
Let me illustrate the complexity of what we do with a sample case. Suppose you want to retire with an income of $100,000 per year, and your combined Social Security at 66 is $48,000. Thus, you need to generate an income of $52,000 to cover your expected deficit. How much should you have in your nest egg to allow you to generate that annual income throughout retirement?
The correct answer depends on many variables, such as how long you expect to live, the rate of return you may earn on your investments, future inflation rates, your legacy desires, your willingness to deplete capital, how you will react when adversity hits your investments, etc. As you can see, the correct answer to this sample case requires relying on many assumptions, which may or may not turn out to be correct. That’s why your advisor should have lots of experience, very good judgement, and no conflict of interest. These qualities are very important if he/she is to help you make the right decisions that may allow you to generate the income stream you desire.
Our process may include the following steps:
- The initial meeting– are we a good fit?
- Defining your goals – what is your vision for an ideal retirement?
- Understanding your financial condition – what do you have and where?
- The diagnosis– a Check-Up you can look forward to – Dr. Ulivi style
- Developing the recommendation(s)– what is the combination of variables that may provide your desired stream of income?
- Presenting the recommendation(s)– explaining your options and recommendations
- Implementing the Recommendations– who will get things done?
- On-going monitoring and quarterly updates – keeping your plan on track
The questions we ask, that need to be answered, include:
- What is your vision of an ideal retirement?
- What is your expected longevity?
- What is your net worth?
- What percent of your net worth are you willing to deplete during retirement?
- What are, or will be, your living expenses?
- What will the future rate of inflation be?
- How much is your guaranteed income?
- How much income needs to be generated from your investments?
- What rate of return do your investments need to earn to generate the required income?
- Which asset allocation is most likely to earn your required rate of return?
- Which investments best represent your asset allocation?
- What rules or indicators will you follow to monitor your financial health during retirement?
- Should you re-evaluate your vision, goals and priorities?
Our “what if” analysis can be as simple as preparing some manual projections, to running sophisticated, and multiple, projections using state of the art software.
Our recommendations are specific, and will provide answers to all the above questions. In sum, we will tell you when we think you should retire, how much income you can reasonably expect to receive, how to invest your savings, and how to monitor your financial progress during retirement.
Professor Ulivi’s recommendations may give you the confidence you need to enjoy a successful retirement!