THE ROAD TO RETIREMENT


THE RETIREMENT GLIDE PATH


THE GROWTH PHASE AGE

20 to 39

The earlier you start saving, the more wealth you are likely to build. Growth Funds are more volatile but over the long-term the return potential can be much higher.


Target Date Funds are Excellent for Long-Term-Accumulation.

The Twenty-Year-Old investor would choose the 2060 Fund where the Thirty-Nine -Year-Old investor would generally use the 2045/2050 Fund.


The closer the investor comes to retirement the less risky the fund allocation will be!


THE LOWER RISK PHASE

40 to 65

The 100 Minus Age Rule?

This rule says you should subtract your age from 100.


The result is the percentage of your assets you should allocate to stocks, also referred to as equities. You would have a 60% allocation to stocks at age 40. You would reduce this to 35% by age 65. This strategy is referred to as a “declining equity glide path.”


We do not recommend bonds at this time for fixed income considering the principal risk prevalent during low interest rate cycles. Should rates increase, bond discounting will effectively erode principal value.


RETIREMENT RED ZONE

5/5

Five years before and the five years after retirement is a critical period when you may have less time to recover from investment mistakes and poor investment performance think. (Safety-First.)


We believe in taking extra time and providing the care needed to educate our clients and help them understand the retirement process and the solutions presented. We help clients navigate the biggest retirement hurdles and adhere to the Safety-FirstStrategy in every plan we develop.


The educational process is the most important aspect as the “investment in knowledge always pays the best interest”.
-Benjamin Franklin
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