FINANCIAL FREEDOM = YOUR COMPREHENSIVE WRITTEN RETIREMENT INCOME PLAN
Our clients want a comprehensive written retirement income plan. They are no longer willing to settle just for investments, or asset statements, that they simply don’t understand. They want every detail about their retirement plan documented so they can read it, understand it, and ensure they’ll remember the basis of their entire financial plan and retirement success. At Peak Financial Freedom Group, our entire process is focused on delivering you a Comprehensive Written Retirement Income Plan.
Many of our clients told us they didn’t understand or were confused about the investments and financial plans they’ve had in the past, as they had no idea how much risk they were taking, how much income they could receive, how much they were paying in fees, and how much they would actually pay in income taxes. The problem was they didn’t have an actual plan in place. Peak Financials’ comprehensive written retirement income plan encompasses four core services, outlined below.
FINANCIAL FREEDOM = YOUR PLAN
A written plan can be used as a measuring stick to track proper progress, and explain every detail of your plan for retirement success. Having a written financial plan will help you avoid confusion, mistakes, misunderstanding, and will significantly improve the probability of a successful retirement plan. There are four main components to Peak Financial’s Comprehensive Written Retirement Income Plan:
The most important thing is having a comprehensive written retirement income plan to guide you through retirement, to be used as a roadmap to help you make the best decisions with your money. Think of your written plan like navigation in your car. Do you use navigation? Well, a written plan is like navigation for your money, it will get you where you want to go financially, making sure you don’t get lost during retirement.
FINANCIAL FREEDOM = GUARANTEE YOU WON’T RUN OUT OF MONEY
One of the biggest fears almost every Retiree has is running out of money, so retirees need to create dependable income, they need a guarantee they’re not going to run out of money for as long as they live. That sounds pretty simple, but it’s very difficult for retirees to figure out how to do this. They get conflicting advice. To eliminate the fear of running out of money you first need to decide how much income you want to be “Certain Income” – income that is guaranteed to be paid to you for as long as you live. Secondly, you will need to decide how much income you’re comfortable with being “Maybe Income” – income that is not guaranteed and can decrease or stop at any time.
What is the only single thing you can do as a Retiree to totally eliminate the fear of running out of money? You have to create as much “Certain Income” from your assets as possible, income that is called “Guaranteed Lifetime Income”, that will be paid to you, and your spouse if married, for as long as you live, even if you live past 100 years old! Let us at Peak Financial Freedom Group help.
FINANCIAL FREEDOM = PROTECT AND GROW WHAT YOU HAVE
Right now, if the stock market crashes, how much will you lose? You probably have no idea, and it’s probably a lot more than you think, and a lot more than you could withstand. It’s imperative you know exactly how much risk you are taking, in writing. You need to have a risk stress test performed on your portfolio, just like a cardiac stress test you would have the doctor perform on your heart. Once you know how much risk you are taking currently, it makes it very easy to decide your next steps.
You are Retired, you are not working any more, not earning a salary, and not adding to your savings. In fact, you may now be using your savings, so it’s no longer prudent to take excessive and unnecessary risks to try and earn the highest possible rates of return. If you try to get the highest rates of return, you have to take the highest level of risk. Right now, your sole focus must be to protect and grow your assets, in that order. You must first protect what you’ve worked so hard for, and then secondly you can try and make it grow.
You also need to know the rate of return you need to make you retirement plan successful, it’s probably a lot lower than you think, which means you don’t have to take as much risk after all! Many retirees have been under the false impression that the more risk they take, the better off they will be, the higher rate of return they will receive, the more income they can safely take out of their accounts, and the better chance they’ll have that their money will last for as long as they live. We have found it’s the opposite: the more risk you take the better the chance you will suffer a big loss, not be able to take out as much income, and have a higher probability of running out of money before you die.
Our focus has to be on risk mitigation first, and return on your retirement investment second, because you do not want to lose any of the hard-earned assets you currently have. At Peak Financial Freedom, we help retirees look at what they must prioritize as their number one financial goal: Asset protection against big losses which maximizes their income and increases the probability you won’t run out of money for your entire lifetime.
FINANCIAL FREEDOM = EXPOSE & REDUCE THE FEES YOU PAY
Many Retirees think they are paying 1% in total fees on their portfolios, because that’s all they can see on their statements or that’s what their broker has told them. But what if you found out that you, like most Retirees we have seen, are actually paying 3%, 4%, or even 5% per year in fees? That could really hurt your plans for retirement. In addition to making the fees you pay transparent, for the vast majority of our clients we have been able to provide significantly lower total fees to the majority of our clients which includes advisory fees and hidden fees.
To minimize fees, you have to understand all of the potential fees you could be paying, which we can help with, we have sophisticated software to help us uncover even the hidden fees. The bad news is that you may have paid far too much in fees during the last 15 years. The good news is that you no longer have to pay more than you should in fees once you schedule a complimentary financial planning review with us.
FINANCIAL FREEDOM = DON’T BE AFRAID TO INCREASE YOUR INCOME BECAUSE OF TAXES
It’s a fact Retirees and Pre-Retirees fear big losses and running out of money, but we have found that many Retirees are just as afraid of paying income taxes. Many Retirees believe they will pay a huge amount of income taxes if they use their assets for income, or increase their income, so they don’t use their assets. The fact is that most Retirees will not be in a high effective tax bracket so they should take income from their assets to live the retirement of their dreams. Peak’s retirement planning guidance includes helping our clients navigate tax issues and utilize their assets today.
The majority of Retirees feel very uncomfortable increasing their income significantly during retirement, because they’re afraid of getting killed with income taxes, and it’s simply because no one has explained how the income tax rates actually work. It’s very sad, but some Retirees won’t use any of their money at all due to their paralyzing fear of taxation. While you were working, you saved your money so you could use it during retirement. You didn’t save it to not use it because you were worried about how much income taxes you would pay. Schedule a meeting with us and we’ll go over retirement tax planning strategies in detail with you.
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