"Too Much Risk"

John & Mary recently retired. 

Now both 61, their primary concern was to ensure a decent rate of return on their investments. They felt sure they needed to achieve a certain high level of return, particularly in the early years of retirement, to ensure they’d have enough to live out their lives.  They felt it best to have a financial advisor review their current investments and structure their recommendations accordingly.

Prior to contacting us, John and Mary interviewed two other advisors at different national firms.  Based solely on John and Mary’s stated belief of the need of, and requirement for a high rate of return, each adviser determined a “risk/reward” profile for John and Mary that were similarly adventurous.  Both advisors had recommended portfolios heavily weighted towards equities and other volatile asset classes.  John and Mary walked away from those meetings feeling the whole process seemed pretty quick and “cookie-cutter.” 

 Their accountant then referred John and Mary to WealthBuilders.

We here felt it important to learn not what John and Mary thought they needed from their investments, but to learn what they actually needed their investments to do for them.  As part of our discussions, we helped them identify the cost of their lifestyle over the remaining period of their lives, allowing for inflation and the cost of possible long-term care. We also discussed and included certain other financial goals and objectives as part of their legacy planning, which they felt would add real purpose and meaning to the lives they’ve led.

In John and Mary’s case, we arrived at some surprising conclusions. We were able to demonstrate that a return of just 1% over and above inflation should be sufficient to ensure they never ran out of money.  We helped them understand that there was absolutely no need for them to flirt with unnecessary risk and that the higher rate of return they thought they needed was just a “boogeyman.”  What they needed, in fact, was a portfolio targeting a lower rate of return, which should offer less volatility.

John and Mary continue to enjoy their retirement and we meet with them regularly to review their accounts and ensure everything stays on track.

Do you know your risk number, or would you like to?

We can show you.

*This is a hypothetical situation based on real-life examples.  Names and circumstances have been changed.  The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  To determine which investments or strategies may be appropriate for you, consult your financial advisor prior to investing.  Your results will vary.