Investment Management

How do we position our investments for retirement?


Situation Overview

Jim and Melinda were considering retirement. Jim, a Boeing Executive with substantial VIP-401(k) savings, other investment accounts, and executive benefits, was ready for life's next chapter! Melinda was looking forward to more free time with Jim.

Assessment

Their goals drove the design of their portfolio. Once we had a clear understanding of their needs, we created an Investment Policy Statement detailing their objectives, their asset allocation mix, and any special instructions. Jim and Melinda's primary concerns were:

  • How do we position our investments for retirement?
  • How do we create a well-diversified portfolio?
  • What is the best approach to draw income from our investment accounts?

Outcome

Today's investors are faced with an environment of rising risk and uncertainty. Economic concerns, low interest rates, and demographic shifts create a challenging climate for retirees. With this uncertainty, we work hard to understand their goals, manage their risk, and create portfolios designed to meet their needs.

Portfolio Design

We believe that an investment portfolio should be designed to address systematic (market) as well as unsystematic (investment) risks. We believe that an investment portfolio should be designed to adapt to ongoing market conditions. The result is a dynamic portfolio in which the overall asset allocation may change in different market environments in an effort to maintain attractive risk and return characteristics. Our dynamic approach is designed to bring an intelligent refinement to traditional buy and hold investing. Based on Jim and Melinda's unique circumstances, we created a customized portfolio with an asset mix that incorporates these broadly defined asset classes:

Real Life Solutions are for educational purposes and are not actual clients. These case studies are based on similar circumstances experienced by our clients. To learn more about our process, see Investment Management Services and Your Investment Roadmap Video.

Deliverables

Integrated Wealth Plan

Jim and Melinda's wealth plan was integrated with their retirement objectives. They organized their financial records and updated their insurance, tax, and estate plans based on their new stage of life.

Retirement Income Study - Taking into account their inflation assumptions, income sources, expense estimates, and investment capital, a long term plan was created.

Executive Compensation & Benefits - Jim's executive benefits and incentive compensation plans were reviewed, and action plans were set to align each program with their retirement plan. Careful consideration was given to the inherent risks and associated tax consequences of owning a significant amount of Boeing stock. The plan also addressed the level of income from pension and payouts from deferred compensation and supplemental benefit plans, and how that income may impact decisions related to other incentive plans.

Investment Management -Capital Planning designed a custom portfolio based on their return objectives, income needs, risk tolerance, and income tax considerations. When Jim retired, his VIP-401(k) was rolled over to an IRA account. Traditional and alternative investment strategies were selected to create a well-diversified portfolio. Ample reserves were maintained at the credit union to meet their short term cash requirements.

Investment Reporting - Jim and Melinda have access to our web-based investment reporting solution:

  • Performance
  • Asset Allocation
  • Portfolio Analytics
  • Transaction History
  • Cost Basis, Interest, Dividends, and Capital Gain Status
  • Projected Portfolio Income

Experienced Advisory Team - The Capital Planning proactive team is led by a seasoned financial advisor and supported by a dedicated client service associate. Other team members are available as needed to provide additional insight in the areas of financial advising, portfolio administration, and investment research. Regular reviews will be conducted to make portfolio adjustments, as Jim and Melinda's investment objectives may change.

Events

See our Events Section for more details.

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