Problem: A middle aged man and his wife who retired recently came to us from a well known national brokerage firm who could not provide comprehensive financial planning services. The client had a substantial net worth and decided to retire at quite a young age. With the market downturn the client was worried they might outlive their assets or might have to severely reduce their standard of living. The previous advisor did not develop an investment policy appropriate to the client’s goals and their portfolio was not adequately diversified, causing their net worth to decline more than necessary during the recent severe bear market.

Our Solution:

• Preparing a complete financial analysis that considered many different retirement scenarios. We used Monte Carlo techniques to simulate the client’s retirement under varying rates of return and inflationary conditions.
• Properly identifying the clients required rate of return from their portfolio.
• Creation of an investment policy that matched their goals with a minimum of risk and a lowering of volatility.
• Closing the “feedback” loop by re-running their financial projections on a regular basis to verify they were still on track and not at risk of becoming financially insolvent 20 years from now or before age 100.

• The client was put at ease knowing they could enjoy their retirement and maintain their present standard of living.
• The client could concentrate on their retirement activities … not spend time managing their assets.
• The reduced volatility in their portfolio will help them not feel “guilty” about making withdrawals to fund their lifestyle.
• The client knows that as a fiduciary we are guided by their interests and not our own.
• Individualized, timely service not found at larger investment firms.