Retirement Income Planning Consultation
We are retirement income specialists. As Investment Adviser Representatives of Commonwealth Financial Network, through planning and investment management, we help our clients ensure that they are on course for pursuing worry-free retirement income that they will not outlive. Using sophisticated retirement income planning software and time-tested strategies, we help clients determine whether they are on the right track; when they can retire; whether they are choosing the right allocation with their retirement savings; and what kind of income they can expect, given their current assets, social security, pensions, or other sources of income they have. The consultation process generally consists of:
An initial consultation where we gather information about the client's situation such as:
- 401(k)/IRA/DROP and other retirement account balances
- Asset allocation
- Estimated or current social security benefits
- Pensions and other assets (e.g., real estate, partnerships)
- Risk tolerance
- Age when the client would like to retire (if he or she is not already retired)
- Other assets and factors
- Estimate of monthly expenses at retirement
Once we have gathered all relevant information, we enter the data into a retirement income evaluation program. We also enter the client's investment information into an advanced asset allocation and analysis software program from a leading research firm.
Then we have another meeting where we present a detailed report on our findings. We will let the client know:
- Budget and financial tips to target a worry-free retirement
- The likelihood of outliving his or her money
- If the client is saving or has saved enough
- If the client has assets allocated properly based on his or her objectives
- How well assets have performed vs. indices, such as the S&P 500 Index or 6-month T-Bills
- Which distribution strategies may work best
We want our clients to get the maximum benefit from the Retirement Income Planning Consultation. When we present the evaluation, we will not recommend specific products or investments to which we offer access. If a client would like us to do that, we will ask him or her to consult with us at another time for a no-obligation proposal. If the client is comfortable with his or her current advisor/investments, no problem. The client can repeat the process whenever it is convenient.
Fee-Based Investment Management
For those who choose to let us manage their investments, we realize the tremendous responsibility that comes with placing their trust in us. That is why, once we complete the initial process of setting up a portfolio, it doesn't end there. We'll monitor the progress our client's money makes. And we'll meet regularly to ensure the investments reflect his or her current life circumstances.
The PPS Select program is a mutual fund, exchange-traded fund (ETF), and closed-end fund wrap program with portfolio management provided by Commonwealth’s Research team. The Research team uses the Commonwealth model portfolio allocations, as well as the Commonwealth Mutual Fund Recommended List (which includes ETFs), to implement and manage client portfolios. We assist clients in matching risk tolerance, time horizon, and investment objectives to these managed model portfolios and leave the research, monitoring, and rebalancing to the Commonwealth team.
Commonwealth’s PPS Select portfolios are based on state-of-the-art asset allocation concepts and Nobel Prize-winning Modern Portfolio Theory in an effort to provide solid, long-term, risk-adjusted returns for investors across the risk/return spectrum. This managed solution allows advisors to focus on the client relationship, while ensuring appropriate asset management.
Commonwealth’s Research team conducts extensive due diligence when selecting funds for inclusion or removal from the PPS Select portfolios. The process has five steps: (1) Screening, (2) Evaluation, (3) Analysis, (4) Portfolio Construction, and (5) Ongoing Monitoring.
Many clients have needs that require us to tailor a portfolio to their goals. For example, a retiree may need a set dollar amount of income each month. Using the universe of mutual funds, ETFs, individual stocks, bonds or other investments, we construct a portfolio specifically for you. We then monitor it, make changes as necessary, and meet with you to discuss performance and allocation.
We use research from many different sources, including Morningstar, Argus, S&P, Value Line, and others, when selecting the securities for inclusion into your custom portfolio. If you have a particular fund family (e.g., T. Rowe Price, Vanguard, Fidelity) that you would like included in the portfolio, we will do our due diligence and include the securities if appropriate.
Commonwealth maintains relationships with several third-party advisory firms that offer various investment management styles, including strategic and tactical asset allocation, passive investing, and institutional money manager relationships.
Hourly Wealth Management Consulting
Many people have portfolios held in other places and would like to know if it is meeting their objectives. Therefore, for an hourly charge, we provide advice on portfolios that we do not manage. Examples of this are 401(k)s, trusts, annuities, and brokerage accounts (Schwab, Fidelity, etc.). When reviewing these, we look at many factors, such as the allocation, performance, and fees. We then will let you know if they match up to your objectives and risk level. If not, what course of action to take.
We also provide advice on many different financial topics that include, but are not limited to, pension buyouts, mortgages, reverse mortgages, cash flow analysis, college funding, major purchases, and general financial planning. If you have a financial issue, we will combine common sense with a calculator to help you come up with a solution.