Rob Fogarty is working on helping a single 62 year old client decide if it’s worthwhile to forgo full Social Security retirement age of 66 for an earlier age 62 distribution, in order to leave an undesirable work environment. Factors being considered include potential for layoff vs. taking Social Security benefits now, and also the client’s potential desire to remain partially in the workforce prior to age 66. Additionally, we are reviewing the crossover point as to where the lower payments over a longer time frame loses ground to having waited for the full retirement payment; while also accounting for the earlier payment’s relief of the need to tap into retirement assets.
Omar Mian is working with one client who is in the process of selling and downsizing his home and moving to a small house. This is huge especially since he was going to fall short on cash flow for retirement. We are looking at how this will help his cash flow and how we need to position his investments and withdrawals to make sure that his capital will last a long time.
David Morgan is currently working with two pharmacists that have recently divorced and are dealing with separation of assets and planning for retirement. He’s also helping another health care professional rollover an old 401k to an IRA to be managed by David at Compass Capital.
Tim Shanahan is counselling a managing partner in an investment firm as to what his exit strategy and possible quality of life career change may look like. Tim prepared various scenarios in a financial model to show that the client’s capital can fulfill his living needs and educate his children. He also proposed a conservative portfolio strategy that can distribute the cash flow that the client needs until his new career gets traction.
Walter Joly and Omar Mian and have been developing a plan and process to bring high quality, well constructed ETF based investment choices to small business retirement plans. New IRS and DOL Regs require all retirement plan providers to state all costs relating to plan maintenance & investment costs and fees to plan sponsors and participants by 9/30/12. Many participants do not really know the true costs associated with their company 401k Plan. Omar Mian and Walter Joly seek to provide a lower cost investment platform that will be 100% disclosed. They have ironed out the inconsistencies through working with current Compass retirement plan clients over the past 16 months, and feel excited at offering a first rate platform. Actively managing passive indexes inexpensively resonates in today’s “New Normal” lower investment environment with Plan Trustees.
Tricia Welsh is advising a client who has an opportunity to make a real estate investment in a rental property. She wanted to know if she could afford to take a large sum out of her investment account and still be on track for an early retirement, according to the financial plan Tricia prepared for her. Tricia’s plan showed her two things: First that given a very modest increase in real estate prices over the next ten years, she would still be on track for retirement. Also, she determined what percentage of her assets would subsequently be in real estate (including her primary residence and one more investment property she owns), compared to what she would have invested in financial assets. Together they determined that she would not be over-concentrated in real estate if she decided to go ahead with the investment. Armed with that information, she is deciding whether to make the purchase.
Tom Licciardelo has executed a retirement plan for a client who is in the “asset draw-down” phase of his plan. As a conservative investor, his primary concern was to have a return sufficient to meet his income goals while minimizing risk. Using a four-bucket approach, Tom first allocated sufficient capital into a money market and CD’s to satisfy his first 3 years of supplemental income needs. In the second “bucket” we built a laddered municipal bond portfolio that would carry him through ten years. The third bucket was a portfolio of preferred securities currently yielding 6.5%. Finally, his qualified plan assets are in a well diversified portfolio to satisfy his minimum required distributions when he attains age 70 1/2. The net result was to provide a reasonable expectation for higher returns without significantly increasing his risk. More importantly, the expected returns will allow him to attain his financial goals.
As Your Trusted Financial Advisor we offer a multi-diciplinary approach to personal financial planning and investment management.
Compass grows its business almost entirely through the referrals of satisfied clients and professionals who know and work with us. If you think there is anyone we should be talking with about how we could help or advise them, we’d be happy and grateful to have that conversation and thank you for thinking of us.