Keys to Retirement Success

Turning the corner with your financial plan

We all know what retirement is. It’s the time in our lives when we won’t work anymore. We’ll have more time to enjoy what we want to do. The idea of retirement is a little different for everyone and will come with different expectations and expenses. The problem is that most people, as they get closer to retirement, face the question: “I’ve accumulated a nest egg … now what?”

Now you have to turn that nest egg into income.

That seems simple enough, right?

No so fast. With the dangers of inflation, living longer and medical expenses, generating an income stream from a lump of money isn’t as easy as you might think.


Little by little, inflation can erode your hard-earned savings. Does your financial plan account for it?

No one can afford to have their money rot away in the bank. Consider alternative places to put your money that can help address inflation. In fact, if you wish, there are ways to build in step-ups in income in order to help keep up with inflation throughout your retirement years for a portion of your assets.

Decide if you want your income to have the potential to increase as time goes on so you’ll maintain purchasing power 15 years into your retirement that you did in years one through five.


The longer a retirement lasts, the greater the chance of falling victim to another significant market downturn. Depending on your withdrawal strategy, if you’re spending down your portfolio, you may also run the risk of spending your nest egg down to zero.

Medical Expenses

According to the latest retiree health care cost estimate from Fidelity Benefits Consulting, a 65-year-old couple retiring this year will need an average of $260,000 (in today’s dollars) over their lifetimes to cover medical expenses throughout retirement. Even if you face no other costs, paying for premiums and deductibles for the traditional Medicare choices of Parts A, B and D can chip away your nest egg.

Reverse Dollar Cost Averaging

During the pre-retirement or “accumulation stage,” investors making systematic payments into an investment portfolio could potentially benefit from “dollar cost averaging.” These investors can take advantage of periodic dips in investment prices. During these periods of share price decline, the consumer is getting more shares for the amount being invested. In periods of up increasing share prices, the consumer is getting fewer shares for the amount invested, however.

Once an investor retires and begins to receive systematic withdrawals from his or her retirement portfolio, these periodic declines in the price of these shares, now being sold to cover expenses, become harmful. Retirees look to generate income to pay for expenses during retirement by systematically taking money from their retirement accounts. When the share prices of the investments in the portfolio decline, the retiree, in an effort to maintain the same lifestyle, may be required to sell more shares to raise the dollars needed. This is “reverse” dollar cost averaging.

A Solution

Every individual will face their own specific challenges and there’s no telling what the market will do. We recommend you work with a retirement specialist. A retirement income specialist focuses not only on the accumulation phase (or the time in your financial life where you’re building and growing a nest egg), but also on the preservation and distribution phases, which are later in life as you approach retirement.

A retirement specialist focuses on helping you turn your nest egg into a sustainable income flow that you can live on during retirement. He or she knows the dangers along the way and the challenges you’ll likely have to navigate during retirement.

Our Process

We invite you to come in and meet with one of our retirement specialists. In the first meeting, we’ll get to know each other. We’ll learn what’s important to you, what your risk tolerance is, and what kind of retirement income you’re looking to generate. During this meeting, we’ll ask you to bring in your current financial, tax and estate planning information. With your permission, we’ll take this information back to our team and you’ll have five financial advisors and our CPA, looking at your plan. We can assess where your liabilities and opportunities are.

In the next meeting, we’ll present to you a report of exactly what risk you may be taking, what costs you’re paying and what liabilities we may see in your insurance, tax and estate planning. Then if you’re comfortable, we can generate a customized plan if our review warrants any changes, based on your current nest egg, that lays out what we would recommend you to generate retirement income.

From our process you can see how you might generate income and the approximate amount of income you could conceivably receive during your retirement.

If you find that our approach is not for you, you can walk away and it won’t cost you anything. Learn more about our process.

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