Planning Philosophy

Protect

• Correct amount of insurance to protect family’s lifestyle.
• 3-6 months cash in emergency fund & no credit card debt.

Optimize

• Target 20%+ savings of income (retirement before college).
• Maximize all free money.
  • Matching, Employee Stock Purchase Plan discounts, etc.
• Utilize tax favored vehicles to pay the minimum amount of tax
  • Tax Deductible, Tax Free, Tax Deferred
• Evaluate paying off debt other than mortgage (cars, student loans, etc.)

Grow

• Construct a portfolio for risk-adjusted rates of return & to avoid market-timing:
  • Tactical Asset Allocation - Modern Portfolio Theory (i.e. risk & reward)
  • Goals Based Asset Allocation - match time frames of investments & goals.
  • Tax Location – strategic location of asset classes for tax efficiency & creative uses of tax favorable vehicles.

Distribute

• Retirement distributions are designed to be:
  • Sustainable throughout anticipated retirement – typically beginning at a withdrawal rate at or below 4% for a 25-year retirement.
  • Tax bracket sensitive – use IRA distributions and/or conversions to fill up bottom tax brackets
  • Multi-dimensional – taking into account Investments, Social Security, Medicare, Required Minimum Distributions, Pensions, annuities, Insurance, etc.
  • Hedged for longevity – taking into account long-term care & other risks associated with living a long life.

Legacy

• Our happiest clients live for a purpose bigger than themselves
• Define what matters & be strategic on who/what receives your money.
  • In the end, you can’t take it with you, & it either goes to family, charity, lawyers, or the government.
• Don’t wait till the end to:
  • Invest in relationships
  • Be charitable with time & money