– From Bruce Grieve of Bentleys Wealth Advisors
I recently met with a lovely retired couple who were working with another advisor and were unhappy with the way their concerns regarding their investments were addressed and how their portfolio was structured.
After spending time understanding their income goals and planned capital expenditure, our team researched their current portfolios and overall strategy. We identified a number of concerns with their portfolio construction in that it was invested far too defensively and was unlikely to be able to sustain their desired income for their lifetime. In addition to this, the strategic opportunities that were meant to be executed annually were missed resulting in them not drawing out the income from the company as planned. When we put a plan in place, we work with our clients to make sure that we implement the strategic opportunities on an ongoing basis.
To illustrate the significant changes we will be able to make, attached is a projection based on their current investment allocation.
You will notice in the attached chart that it is projected they will run out of funds earlier than we would want. We ended up putting together a strategy that will position their investment into a more appropriate risk profile to allow them to meet their income goals which can be seen here.
This will provide our clients with far more peace of mind to know that they are on track to enjoy their retirement – which currently isn’t the case. The improved investment outcome isn’t achieved through taking on unnecessary risks, but simply having a clear, methodical approach to structuring investment portfolios based on long-term data and well researched strategies. The recommended investment strategy will result in them paying approximately $4,400 in tax per annum less on a comparative basis.
Lastly, we are able to execute a tax reduction strategy in a few years that will result in their children paying approximately $78,000 less in tax upon their passing. This is an important strategy that is often overlooked and one we ensure is actioned as soon as possible, where beneficial.
Once we put the plan in place, the work of implementing and reviewing the recommendations annually is a key role in our ongoing support to our clients. There will be good times when the markets are performing well, and bad times when the markets underperform. What is important is that our clients understand that our single focus is their personal and financial well being. We will always be available to remind our clients what they need to focus on and pay attention to. Likewise, we will let them know what things they should ignore and pay no attention to. If we can get this correct, our clients will be well on their way to enjoying their retirement without worrying about how to fund it.
If you have concerns about your future retirement Bruce is always available to have an obligation free discussion to see if he can assist.