FINANCIAL PLANNING | Income for Life
 
 

The Income for Life Model® is an investment strategy with the objective of pursuing an inflation-adjusted income for life. It involves a strategic combination of asset allocation and product selection with the following goals:

1. Minimize the impact of emotion.

2. Increase income to help maintain purchasing power throughout retirement in the face of inflation.

3. Minimize risk. * Stock investing involves risk including loss of principal. No strategy assures success or protects against loss.

4. Preserve principal.

5. Realize the best possible chance of achieving projected investment results by keeping assets invested over long periods of time.

The fact is that one can never know with certainty how their investments are going to perform. When withdrawing money from your investments in retirement, you run the risk of having to sell when the market is down, therefore, having to sell a larger number of shares from your portfolio.

The Income for Life Model® helps to avoid this phenomenon known as “Reverse Dollar-Cost Averaging.” In most retirement portfolios, Wall Street tells you to invest in their nifty-looking pie chart, called an “Asset Allocation Model.” Then, when you need money, they tell you to sell from each of the segments and re-balance your portfolio. But when the market is going down, this plan accelerates the depletion of your portfolio. It is like trying to drink from a cup with a hole in it; the water disappears while you are still thirsty.

Your income needs for today should be invested differently than your assets that you will need for future income. That’s why we segment your money into 5 to 10-year segments. This allows you to withdraw income today from money that is invested for the short-term and not correlated to the market; meanwhile, your money for the future is invested for the long-term, with the goal of providing income for you 25 years or more into the future.

The Income for Life Model® is designed to address the three major retirement risks:

1. Market volatility

2. Inflation

3. Outliving your money

 
   
Securities and Advisory services offered through LPL Financial, a registered investment advisor, member FINRA/SIPC. Investment products and services available only to residents of: AL, AR, AZ, CA, CO, FL, GA, LA, MS, MT, NC, ND, OH, OK, SC, TN, TX.
 
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