Getting There: Your Working Years
Charting Your Course Through Retirement
ul a
total assets
t en m e tir ion e t R er P um c Ac
Accumulation Phase
$ Wages
$
Coordination Center Design, construction, and maintenance of your financial plan
· Education · Car · House
$
$
t io
n
$
$
Saving, future
• • • • • • • •
Cu
r re n
t sp e n di
ng
Define future needs Pre-retirement assessment and projections Create and manage separate “buckets” for specific items like car, house, and college Select appropriate retirement savings vehicles Determine investment mix for various accounts Minimize tax & interest costs Adjust plan/investments as situation changes Incorporate inheritance or windfall, if applicable $
Retirement Reservoir: Saving for the future Time horizon
Shorter
Risk tolerance
Low
Longer High
Necessary rate Preservation of return
Investment model % Stocks/bonds
© Niehaus Financial Services, LLC
nt
time
$
Specific needs & emergency fund
Ret i Di
e m u re rib st
Getting There: Your Working Years
Transition
5600 Harrison Avenue . Cincinnati, Ohio 45248 513.471.9600 . www.niehaus-financial.com
Growth
Defensive Conservative
20/80
40/60
Balanced
Equity-tilted
Equity
60/40
75/25
100/0
1
Charting Your Course Through Retirement
ul a
total assets
Transition Phase
t en m e n ir et tio R e Pr u m c Ac
Ret i Di
e m u re rib st
Decisions: Once in a Lifetime
Transition
5600 Harrison Avenue . Cincinnati, Ohio 45248 513.471.9600 . www.niehaus-financial.com
nt
t io
n
time
$ Sustainable withdrawal rate
Pension decisions
Coordination Center Design, construction, and maintenance of your financial plan Long-term care insurance option
Account consolidation
Helping you with transition phase decisions, including: • How much can you afford to spend from your investments and have your money last? • When should you take Social Security? • What pension payout option should you select? • How can you consolidate accounts for ease of management and record-keeping? • How can you fine-tune your investment mix in anticipation of future distributions? • What are tax-saving strategies to consider as your sources of income change? • Should you pay off your mortgage? • Should you consider puchasing long-term care insurance?
Mortgage payoff timing
© Niehaus Financial Services, LLC
AL SECURITY SOCI
Social Security timing
Investment mix fine-tuning
Tax-saving strategies 2
total assets
Distribution Phase
t en m ire n et tio R ePr u m c Ac
nt
t io
n
time
Retirement Reservoir: Income that lasts Time horizon
Shorter
Risk tolerance
Low
20/80
· Legacy · Gifts · Long-term care
High Growth
Will
Defensive Conservative
% Stocks/bonds
Specific needs & emergency fund
Longer
Necessary rate Preservation of return
Investment model
Ret i Di
e m u re rib st
Making It Last: Drawing Income & Leaving a Legacy
Transition
5600 Harrison Avenue . Cincinnati, Ohio 45248 513.471.9600 . www.niehaus-financial.com
ul a
Charting Your Course Through Retirement
40/60
Balanced
Equity-tilted
Equity
60/40
75/25
100/0 $
$
• Coordinate withdrawals from various accounts
Design, construction, and maintenance of your financial plan
• Establish withdrawal plan (systematic or take as needed) • Decide what to sell to raise cash for withdrawals • Monitor investment mix and realign with model as needed • Update projections periodically to confirm money will last • Review estate planning considerations
Social Security/ pension
© Niehaus Financial Services, LLC
Investments $
$
$
$
$
during reti re ing d en
t en m
$
Part-time wages
Sp
Coordination Center
• Minimize tax & interest costs
$
3
Disclosures:
Charting Your Course Through Retirement
a. Securities offered through Securities America, Inc., Member FINRA/SIPC and advisory services offered through Securities America 5600 Harrison Avenue . Cincinnati, Ohio 45248 Advisors, Inc. Niehaus Financial and the Securities America companies are unaffiliated. 513.471.9600 . www.niehaus-financial.com b. Investments in model strategies may expose the investor to risks inherent within the model and the specific risks of the underlying investment directly proportionate to their allocation. All investments involve the risk of potential investment losses. c. A defensive investment model is suitable for highly conservative investors, including those nearing or in retirement or requiring withdrawals of some of their invested assets within a three-to-five-year time frame. This portfolio will have up to 80% of the assets invested in fixed income and no more than 20% of the assets invested in equity. d. A conservative investment model is suitable for conservative investors, including those nearing or in retirement or requiring withdrawals of some of their invested assets within a three-to-five-year time frame. This portfolio will have up to 60% of the assets invested in fixed income and no more than 40% of the assets invested in equity. e. A balanced investment model is suitable for investors uncomfortable with an aggressive all equity strategy who nevertheless require a greater return to pursue their specific investment goals. This portfolio will have up to 60% of its assets invested in equity and up to 40% of its assets invested in fixed income. f. An equity-tilted investment model is suitable for investors with longer time horizons who are willing to assume above-average shortterm volatility in pursuit of long-term growth. The portfolio will have up to 75% of its assets invested in equities and up to 25% of its assets invested in fixed income. g. An equity investment model is suitable for long-term investors willing to accept greater risk in pursuit of growth potential. This portfolio will have up to 100% of its assets invested in equity. h. Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns. i. Bonds are subject to interest rate risks. Bond prices generally fall when interest rates rise. The price of equity securities may rise, or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. These price movements may result from factors affecting individual companies, sectors or industries, or the securities market as a whole, such as changes in economic or political conditions. Equity securities are subject to “stock market risk” meaning that stock prices in general may decline over short or extended periods of time. j. Tax services offered through Niehaus Tax Services, LLC and legal services offered through Niehaus Law Office, LLC, both of which are unaffiliated with Securities America.
© Niehaus Financial Services, LLC Rev. 9.10.2014
4
ul a
total assets
t en m e tir ion e t R er P um c Ac
Accumulation Phase
$ Wages
$
Coordination Center Design, construction, and maintenance of your financial plan
· Education · Car · House
$
$
t io
n
$
$
Saving, future
• • • • • • • •
Cu
r re n
t sp e n di
ng
Define future needs Pre-retirement assessment and projections Create and manage separate “buckets” for specific items like car, house, and college Select appropriate retirement savings vehicles Determine investment mix for various accounts Minimize tax & interest costs Adjust plan/investments as situation changes Incorporate inheritance or windfall, if applicable $
Retirement Reservoir: Saving for the future Time horizon
Shorter
Risk tolerance
Low
Longer High
Necessary rate Preservation of return
Investment model % Stocks/bonds
© Niehaus Financial Services, LLC
nt
time
$
Specific needs & emergency fund
Ret i Di
e m u re rib st
Getting There: Your Working Years
Transition
5600 Harrison Avenue . Cincinnati, Ohio 45248 513.471.9600 . www.niehaus-financial.com
Growth
Defensive Conservative
20/80
40/60
Balanced
Equity-tilted
Equity
60/40
75/25
100/0
1
Charting Your Course Through Retirement
ul a
total assets
Transition Phase
t en m e n ir et tio R e Pr u m c Ac
Ret i Di
e m u re rib st
Decisions: Once in a Lifetime
Transition
5600 Harrison Avenue . Cincinnati, Ohio 45248 513.471.9600 . www.niehaus-financial.com
nt
t io
n
time
$ Sustainable withdrawal rate
Pension decisions
Coordination Center Design, construction, and maintenance of your financial plan Long-term care insurance option
Account consolidation
Helping you with transition phase decisions, including: • How much can you afford to spend from your investments and have your money last? • When should you take Social Security? • What pension payout option should you select? • How can you consolidate accounts for ease of management and record-keeping? • How can you fine-tune your investment mix in anticipation of future distributions? • What are tax-saving strategies to consider as your sources of income change? • Should you pay off your mortgage? • Should you consider puchasing long-term care insurance?
Mortgage payoff timing
© Niehaus Financial Services, LLC
AL SECURITY SOCI
Social Security timing
Investment mix fine-tuning
Tax-saving strategies 2
total assets
Distribution Phase
t en m ire n et tio R ePr u m c Ac
nt
t io
n
time
Retirement Reservoir: Income that lasts Time horizon
Shorter
Risk tolerance
Low
20/80
· Legacy · Gifts · Long-term care
High Growth
Will
Defensive Conservative
% Stocks/bonds
Specific needs & emergency fund
Longer
Necessary rate Preservation of return
Investment model
Ret i Di
e m u re rib st
Making It Last: Drawing Income & Leaving a Legacy
Transition
5600 Harrison Avenue . Cincinnati, Ohio 45248 513.471.9600 . www.niehaus-financial.com
ul a
Charting Your Course Through Retirement
40/60
Balanced
Equity-tilted
Equity
60/40
75/25
100/0 $
$
• Coordinate withdrawals from various accounts
Design, construction, and maintenance of your financial plan
• Establish withdrawal plan (systematic or take as needed) • Decide what to sell to raise cash for withdrawals • Monitor investment mix and realign with model as needed • Update projections periodically to confirm money will last • Review estate planning considerations
Social Security/ pension
© Niehaus Financial Services, LLC
Investments $
$
$
$
$
during reti re ing d en
t en m
$
Part-time wages
Sp
Coordination Center
• Minimize tax & interest costs
$
3
Disclosures:
Charting Your Course Through Retirement
a. Securities offered through Securities America, Inc., Member FINRA/SIPC and advisory services offered through Securities America 5600 Harrison Avenue . Cincinnati, Ohio 45248 Advisors, Inc. Niehaus Financial and the Securities America companies are unaffiliated. 513.471.9600 . www.niehaus-financial.com b. Investments in model strategies may expose the investor to risks inherent within the model and the specific risks of the underlying investment directly proportionate to their allocation. All investments involve the risk of potential investment losses. c. A defensive investment model is suitable for highly conservative investors, including those nearing or in retirement or requiring withdrawals of some of their invested assets within a three-to-five-year time frame. This portfolio will have up to 80% of the assets invested in fixed income and no more than 20% of the assets invested in equity. d. A conservative investment model is suitable for conservative investors, including those nearing or in retirement or requiring withdrawals of some of their invested assets within a three-to-five-year time frame. This portfolio will have up to 60% of the assets invested in fixed income and no more than 40% of the assets invested in equity. e. A balanced investment model is suitable for investors uncomfortable with an aggressive all equity strategy who nevertheless require a greater return to pursue their specific investment goals. This portfolio will have up to 60% of its assets invested in equity and up to 40% of its assets invested in fixed income. f. An equity-tilted investment model is suitable for investors with longer time horizons who are willing to assume above-average shortterm volatility in pursuit of long-term growth. The portfolio will have up to 75% of its assets invested in equities and up to 25% of its assets invested in fixed income. g. An equity investment model is suitable for long-term investors willing to accept greater risk in pursuit of growth potential. This portfolio will have up to 100% of its assets invested in equity. h. Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns. i. Bonds are subject to interest rate risks. Bond prices generally fall when interest rates rise. The price of equity securities may rise, or fall because of changes in the broad market or changes in a company’s financial condition, sometimes rapidly or unpredictably. These price movements may result from factors affecting individual companies, sectors or industries, or the securities market as a whole, such as changes in economic or political conditions. Equity securities are subject to “stock market risk” meaning that stock prices in general may decline over short or extended periods of time. j. Tax services offered through Niehaus Tax Services, LLC and legal services offered through Niehaus Law Office, LLC, both of which are unaffiliated with Securities America.
© Niehaus Financial Services, LLC Rev. 9.10.2014
4
