Our clients understand that individual, fixed-income securities can provide a measurable reduction in risk, costs, and tax implications when compared to bond mutual funds. That’s why our advisors create fully customized portfolios of individual income-producing investments that are tailored to our client’s needs. Our active management of these fixed-income securities allows our team of portfolio managers to continually identify opportunities to help maximize returns on our clients’ behalf.
Shifting your investment focus from growth to income in the years just before retirement makes sense for most. But how do you know if an income strategy is right for you?
Our Goals: Asset Preservation and Dependable Income
Let’s start with the basics. The income model is designed to help you achieve two objectives that become increasingly important as you near retirement: asset preservation and dependable income.
A 2017 survey 1 by the Teachers Insurance and Annuity Association found there are three common themes almost all Americans are looking for in retirement:
1. Freedom from financial worries
2. Flexibility with their lives and their finances
3. To spend time with family, relax, and travel
Chances are good that these themes might match up well with what you want from retirement, too. However, to make it happen, you’ll need to identify your specific goals around those themes. Travel where? Relax how?
Once most people take the time to think about it, they realize their goals are purpose-based. In other words, they’re investing with the goal of having the financial resources to be able to travel, relax, and spend time with friends and family in retirement.
Once you’ve identified your goals, you need to ask yourself how you want to pay for these things. Will you want to liquidate shares of your stock? Probably not. You would most likely want to pay for them using your income.
Passive Income You Can Count on In Retirement
Once most people realize this, they understand the benefit of having a financial plan geared toward owning assets and investments that generate passive income they can count on in retirement. And this doesn’t mean that you cannot remain invested in the stock market once you near retirement. For those with the ability to endure some level of market risk, dividend-generating stocks can be a viable way to generate steady income in retirement.