Many investment management firms only manage client’s assets. Assets under management, or “AUM,” is often the primary, and sometimes only, compensation for these firms. Income management solutions aren’t proposed, are rarely discussed, and are often dismissed.
At Retirement Income Center, we aren’t tied to a single compensation model. Our recommendations are objective, independent, and always in your best interest. When appropriate, our strategies include a dependable income floor to reduce the likelihood that you will outlive your assets.
Asset Management Services
Prudent retirement income planning strategies begin with conservative investment management. We won’t recommend any investment strategy or individual investments until we prepare a detailed customized retirement income planning analysis for you.
In addition to being conservative, the strategies that we recommend are tax- and inflation-sensitive. Our clients benefit from founder Robert Klein’s specialized knowledge of the role that the tax code plays in retirement planning. A seasoned investment adviser, Bob is also a well-established CPA with a Master of Science in Taxation and has received the CERTIFIED FINANCIAL PLANNER™ and Retirement Income Certified Professional® (RICP® ) designations.
Investment Advisory Services
Robert Klein provides investment advisory services to clients in his capacity as an Investment Adviser Representative (IAR) of Retirement Income Center. As an IAR, Bob is an independent financial advisor who is legally bound to serve the best interests of his clients in a fiduciary capacity.
Retirement Income Center’s investment advisory services process includes quarterly or semi-annual meetings or telephone conferences with clients as appropriate. The focus of these meetings is how you’re doing relative to where you should be based on your goals as stated in your retirement income plan.
We monitor and analyze the performance of our clients’ investment accounts on an ongoing basis. Recommended portfolio rebalancing transactions are presented to you twice a year for approval. The purpose of rebalancing is to adjust the values of investment categories to their targeted percentages and to replace individual holdings that may not be performing well relative to their investment category peers.
Income Management Services
A well-diversified, professionally-managed investment portfolio can enable you to pursue various financial goals in the accumulation stage of your life. As you approach, and move into, retirement, a customized income portfolio plan is essential for enabling you to close the gap between your projected income needs and sources without worrying about, and being dependent upon, volatility of the stock market.
Whereas an investment portfolio uses a mix of assets such as mutual funds, exchange traded funds, etc., with the goal of minimizing risk, an income portfolio uses income streams to accomplish the same objective. The streams are often laddered to match projected changing expense needs in different stages of retirement.
Income Portfolio Strategies
An essential element of retirement income portfolio strategies is that they are sustainable, i.e., income, once it is started, will continue for life. At Retirement Income Center, we have found that a customized blend of fixed income annuities that closes projected income gaps at different stages of retirement is the most efficient and conservative use of our clients’ retirement assets for this purpose.
Unlike other income planning strategies, immediate and deferred fixed income annuities can be structured to provide predictable inflation-adjusted income streams as well as potential income tax savings for the nonretirement portion of one’s portfolio. Deferred fixed income annuities that we recommend include deferred income annuities (DIAs) and fixed index annuities (FIAs) with income riders.