Not outliving your nest egg is one of the biggest challenges facing retirees today. You need income from your investments, but you also need growth to ensure your portfolio lasts throughout your retirement. That’s why the financial advisors at Financial Synergies developed The Retirement Salary® to meet this challenge.
The security of a consistent salary doesn’t have to go away in retirement.
A steady income that you control, consisting of cash, money market funds, and short-term bonds. Your distribution is direct deposited in your bank account regularly and is designed to deliver a consistent stream of income. The salary component coordinates with other streams of income like Social Security, pension income, and royalty income.
Your retirement time horizon could be longer than anticipated – you’ll need growth from your investments.
The engine of your portfolio, designed to outpace inflation through a diversified mix of stocks, bonds, and real estate. The allocation is designed to meet your specific goals, risk tolerance, and income needs. The profits from the growth component feed the salary component to create a consistent and reliable stream of income.
If we enter a prolonged downturn in the stock market, we’ll look to the bond positions of the growth portfolio as the second-tier cash reserves. This will prevent us from having to sell stocks when they are down. Bonds can act as a defensive mechanism during stock market pull-backs, often producing positive returns. This would only be necessary in extreme environments.
At Financial Synergies, our team of Houston financial advisors have been applying The Retirement Salary® methodology for decades through many challenging market environments, and it has served our clients well. Let our team help you create a customized retirement income strategy that’s ideally suited to your needs and specific situation. Please contact our wealth management advisors today to see how we can serve you!
The Financial Synergies Retirement Salary® program is our proprietary retirement income strategy. The objective of the Retirement Salary® program is to produce a steady and predictable income to the retiree, while continuing to grow the investment portfolio conservatively over time, outpacing inflation. The growth component of the portfolio is invested in a diversified mix of stocks, bonds, real estate, commodities, and alternative strategies. The income component is invested in ultra-short duration bonds and money market funds.
Please view our video and contact us with additional questions.
