Fixed income is a critical component of any portfolio. It is the foundation in which the rest of the portfolio can be built. Our fixed income desk allows us to purchase fixed income instruments directly from the open market without markup. The fixed income instruments are utilized to control risk in the portfolio in a manner specifically tailored to the individual client.
Investors should always keep in mind the tax impact of their portfolio options. The “Tax Efficiency” of a portfolio can help investors keep more of the money they make. For a portion of the portfolio we like to use “core funds” that hold stocks across all size and valuation ranges but have higher weights in small-cap and value stocks when compared to the overall market. In addition, we may use tax-managed funds and municipal bonds in taxable accounts. Tax-managed funds are mutual funds that explicitly look to harvest capital losses and defer gains to improve tax efficiency. Each portfolio is designed by evaluating our client’s specific situation so we can maximize the efficiency of their individual investment strategies.
Pensions & Annuities
Annuities can play a role in certain retirement plans. However, like most financial products there are annuities that are right for the client’s specific situation and those that are not. We do not sell any annuity or insurance product. This allows our advisors to be independent evaluators of the need for an annuity. We can also fairly evaluate existing annuity contracts and help our clients understand if the contract is right for their situation and if the fees are appropriate. It is our desire to help educate clients on the use of annuities as an independent advisor.
Pensions can enhance the retirement plan for individuals that have them available. There are key decisions that need to be made when a client retires regarding the annuity and we are there to guide our clients through this decision making process. We also design our portfolios around the annuity as part of our holistic planning process. This complete planning provides the client with a more complete view of their financial situation.
Many people think of retirement planning as saving enough money to live the lifestyle they’ve envisioned and do the things they’ve planned. The financial skills and planning you need for this new phase of life should be implemented before retirement begins. We can help you develop a customized spend-down plan to decrease your tax costs and increase your odds of having enough money in retirement.
Our spend-down strategies include:
- Moving past the traditional tax goal of paying the least amount in a single year to losing the least amount of wealth over your lifetime.
- Defining the amount of money you need to achieve your desired retirement lifestyle and implementing a plan to fund that lifestyle.
- Optimizing your Social Security payout to achieve maximum benefits.
- Reducing the income taxes you pay by updating estate-planning documents to reflect current tax law.
- Sharing proven, field-tested strategies that our specialists have used to help others through this transitional phase.
- Identifying opportunities to lower taxes through IRA conversions and distributions and rebalancing and managing your portfolio.
- Putting your plan in writing so you understand how your retirement lifestyle will be funded.