Invest Smarter: Financial Bucketing For Retirement
Insure your income, insure your outcomes, invest the rest with purpose®
Retiring can be the most exciting thing you ever do, but it can also be one of the scariest. Right when you thought you had everything figured out, questions can arise. Doubt can set in.
Questions like “have I set aside enough money?” “How will I make my/our income last?” “What if the stock market falls right after I retire?” “Will Social Security always be there for me?” These questions are natural and normal—and none of them are irrational or illogical. Bucket planning for retirement can help.
We live in a complicated, constantly changing world. The stock and bond markets are even more volatile. If you are closer to age 64 than age 34, you are wise to begin making changes to the way you allocate money. It is a good time to move more of your money toward income and preservation, out of harm’s way, with a bit less toward market risk.
The IQ Wealth Financial Bucketing System™ helps you get serious about proper allocation. The goal is to help you a) invest smarter, b) receive a higher, more reliable income for life, and c) give each of your dollars a job to do. The benefit to you: a more clear and workable financial plan, with the real goal being more financial peace of mind.
The IQ Wealth Financial Bucketing system is practical and proven. The system seeks to address every financial aspect of retiring:
- The need for ample, ready liquid cash to handle essential living expenses-plus money for travel and recreation
- The need for secure, reliable income that is guaranteed for life (INCOME)
- The need to continue to prudently grow your net worth (EQUITY GROWTH)
- The need to address the risk of long term care funding, and to address your desire to leave a legacy (if that is your goal) (OUTCOMES)
The IQ Wealth Safer Bucketing System™allows you to organize and simplify your finances by assigning tasks and time deadlines to to each need listed above.
You want a financial plan that is clear, easy to understand, and works to help achieve your goals.
Rather than throwing your money into one big pot and hoping for the best, we help our clients meticulously address all the things that could go wrong and protect against them. Then, we position our clients to benefit when the markets and the economy go well.
Our team of planners and advisors work together to create a financial and estate plan second to none.
IQ Wealth Safer Bucketing™ Retirement System--The Basics:
“Remember When a Half Million or a Million in a 401(k) Meant Your Money Worries Were Over? That Was Then, This Is Now.”
Studies reveal that retirees are more concerned with running out of money than any other financial issue.
How long will your money last? Do you know? You should. Research by a leading USA accounting firm (Ernst & Young) indicates that today’s retirees now face up to a 56 percent chance of income failure in their lifetimes, due to withdrawing against low interest rates and volatile markets.
Retirement income planning was a snap when banks paid 6 percent, bonds paid 8 percent and retirements lasted 15 years. Today's retirees are faced with stiff winds.
In this century, interest rates have been cut in half and retirements have doubled in length. Your money's job just got twice as hard.
The IQ Wealth Safer Buckets System separates retirement money into categories, each with its own specific task and time deadline.
Rather than throwing all your money into one big pie chart of risky mutual funds and REITs, we analyze where each of your dollars need to be in order to achieve your objectives.
Because sustainable retirement income is the lifeblood of a stress-free and successful retirement, we believe it is important to separate a portion of your money and dedicate it to fixed income.
The concept is nothing new.
Even the venerable John Bogle, founder of Vanguard, promoted the wisdom of keeping "your age in bonds." Unfortunately, bonds today are paying poverty rates and bond mutual funds can lose money when interest rates rise.
Mr. Bogle meant that if you were 60 years old, 60 percent of your money should be out of harm's way and dedicated to fixed income for retirement. Let's call it your "income bucket."
Building an income "bucket" in the 21st century takes more work than in John Bogle's day when bonds paid three to four times as much as they do today. It happens to be the work that we enjoy and help our clients with on a daily basis.
Rather than drawing haphazardly "from the whole pile" of your money, you instead become very picky about exactly how much income you will get from your retirement money. Our objective matches yours: you want to be paid a steady income from a permanent and guaranteed resource--like a pension.
The goal is to find secured and even insured assets that can provide more income using fewer dollars. While this may lead us to annuities, it may not. However, if it does, we focus on helping our clients find the most optimal annuity choices, shopping up to a thousand or more.
Once we have matched and exceeded your liabilities with secure income, the focus turns squarely onto investment growth. In our view, that typically means dividends and real estate.
Plan, Invest, Insure, Retire and Stay Retired.
Many traditional cookie-cutter strategies are still based on the assumption that stocks always average 10 percent and bonds always average 6 percent.
While there was time when investors could count on those averages over a very long time period, that time has passed. The 1980s and 1990s were heady days for the stock market and economic growth in the U.S.
Today, with baby boomers retiring in greater numbers, reliance on 1990s thinking becomes not only archaic, but dangerous.
Are you still investing like it's 1999?
The economy is only growing at 2 percent today. In the 80s and 90s it grew at 4% and better.
Is it reasonable to assume the stock market will always provide an 8 percent margin of profit over the real economy? It never has in the past.
Bank accounts and bonds paid 5 to 8 percent in the 1990s. Today they are paying 0 to 3 percent.
You retire only once. We help people retire every day with ample liquidity, income, and investment growth. We can help you protect your heirs and protect your principal by helping you get more scientific and orderly with your money.
Rather than approaching retirement with a hodge-podge of financial products and hoping for the best, the IQ Wealth Safer Buckets Retirement System gives you more control over outcomes, and keeps you prepared for the worst. Our job as your advisory team is to keep you financially independent and not reliant on market outcomes.
Don't just manage your money, MASTER your money.
Explore the IQ Wealth Safer Buckets™ Retirement System
©Copyright 2014-2018 by IQ Wealth Management.
Investment securities and annuities are on opposite ends of the financial spectrum. We believe both can contribute to a well balanced retirement portfolio. Each has its own benefits and limitations. Therefore, we maintain two divisions: securities and insurance. Fee based investment advisory services are provided by IQ Wealth Advisory, LLC, a Registered Investment Adviser. Insurance and annuities are provided by IQ Wealth Management--Insurance Division. Annuities are insurance-based financial vehicles designed not for growth but for income preservation and sustainability. Annuities are not FDIC insured and may have surrender charges for a period of time. Generally, a partial withdrawal of 5 to 10 percent is allowed annually, penalty free. The annuities we recommend waive all surrender charges upon death. All guarantees rely on the financial strength and claims-paying ability of the issuing insurer. At IQ Wealth, our policy is to require at least 100 years of successful track records and strong ratings for any insurance company we recommend.
Income riders are a means to enhance the income benefits provided by the underlying annuity contract. A discussion regarding whether an annuity would meet your needs and objectives should take place, before deciding if an income rider is appropriate.
All written content on this site is for information purposes only. Opinions expressed herein are solely those of IQ Wealth Management and our editorial staff. Material presented is believed to be from reliable sources; however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Fee based financial planning and investment advisory services are offered by IQ Wealth Advisory, LLC a Registered Investment Adviser in the state of Arizona. Our firm also utilizes third party SEC registered investment managers when we believe it will benefit our clients.
Referring professionals (accountants and attorneys) are not employees or direct affiliates of IQ Wealth, however, typically they provide special pricing for our clients and listeners. Murray Titterington is an Investment Adviser Representative of IQ Wealth Advisory, LLC. IQ Wealth employees and principals do not render tax or legal advice. Referrals are provided as a courtesy to help our clients with their due diligence. No investment is required.
Insurance products and services are a separately licensed activity offered through IQ Wealth Management. Steven Jurich is the founding principal and licensee of both companies. IQ Wealth Management is a registered DBA tradename for both licenses with the Department of Insurance and the Securities Division of the Arizona Corporation Commission. The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any State other than the State of Arizona or where otherwise legally permitted. All references to locations outside of Arizona and all references to guarantees on income or death benefit relate to insurance services only. Guarantees rely on the claims paying ability of the insurer. Steve Jurich is a licensed life insurance and annuity agent authorized in multiple states, including Arizona (resident) and California (License 0b85609). Licensing in itself does not infer a level of skill. Because our portfolios often allocate a combination of securities and insurance based products, understand and inquire about the differences between investment securities and insurance products. Thank you.
Have a no-cost, no obligation conversation with an experienced adviser and fiduciary.
Steve accepts 4 to 8 new clients per month in order to serve each with optimal attention and personal service.
Free Retirement Readiness Review
Learn more about the IQ Wealth proven approach to practical planning. To arrange your free review, please contact Barb at (480)902-3333, or email: Barb@IQWealth.com
Get access to our helpful retirement kit, which includes three guides that address topics you should consider when planning your retirement.