Early retirement is a concept that is achievable at most any age, though traditional benefits designed to supplement a retirement such as Social Security, Medicare benefits and retirement accounts may not be available for use until specific ages are reached, which could be well after your ideal retirement age. Because of this, the accumulation of wealth is necessary to create a portfolio which is sustainable and provides for lifelong income, no matter how long the desired retirement timeframe. A portfolio must be carefully designed to be suitable for each individual and families’ situations and must be adaptable to evolving economic conditions and changing life circumstances.
In creating a portfolio which will provide perpetual income, the following areas must be addressed and planned for within your financial plan.
Professional Investment Management: As market conditions are ever evolving, professional investment management is critical for proper re-balancing and updating of allocations to continue an appropriate course.
Growth and Income: A portfolio designed for an elongated retirement must provide enough income according to individual needs and provide for growth as future income needs typically change and must be capable of adapting.
Inflation Hedge: A portfolio must be able to keep pace with increasing rates of inflation to provide a similar standard of living throughout an indefinite retirement period.
Diversification: A portfolio must be capable of enduring market volatility to be successful, therefore diversifying a portfolio among multiple asset classes is needed to reduce risks as time continues.
Multiple Income Sources: As a risk reduction strategy, it is common to utilize multiple sources of income to sustain a longer retirement.
- Tiered Income Layers: Separate assets working to accomplish your goals.
- Liquidity: Emergency Funds for unusual and unexpected expenses.
- Income Producer: Assets designed to generate income for normal living expenses.
- Race Horse: Assets invested with the intent of growth to hedge inflation risks.
Strategic Distribution of Assets: Creating a unique plan based upon your financial situation to generate lifelong income, and minimization of annual tax liabilities, through strategies such as tax loss harvesting.
Craft asset management does not provide accounting or legal services; however, we can work closely with your accountant, attorneys or other professionals. Please contact us for a complete description of our Financial planning and asset management services.