Typical client situation

A retired couple is living primarily on investment income. The couple’s investment strategy was very conservative. She never wanted to take risks with their portfolio and invested most of their assets in Certificates of Deposit. The goal was to accumulate enough money to generate a safe income to supplement their social security.





How we can help

Our planners can review their portfolio and help the couple determine overall asset allocation. In addition, they can assess past tax returns to determine their marginal tax bracket. Planners will examine the couple’s risk tolerance levels and annual expenses. After thorough analyses, alternative investments will be suggested.

Several fixed income investments will be considered, such as municipal, government and corporate bonds. These investments will provide a higher interest rate than CDs, yet are still considered conservative. The planners will recommended different maturities for bonds to help protect principal if interest rates rise. Only investment grade bonds will be proposed to help reduce risk of possible default of the underlying issuer. Ankerstar Wealth will share pros and cons of individual bonds versus bond funds.

The planners will also presented additional ways to assist in obtaining a dependable retirement income. One method is a systematic withdrawal from retirement accounts. This withdrawal provides a fixed dollar payment amount that can be direct deposited monthly to a personal bank account. Shares are sold periodically to produce necessary cash needed to support withdrawals. Dividend income and anticipated appreciation can help sustain the principal on an ongoing basis.

Our planners can help the couple increase cash flow from their investments without substantially increasing their risk.  This additional income can enable them to help maintain their desired lifestyle and still be comfortable financially.

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