​​The Collaborative Retirement Blueprint

​​​​What is it?

The Collaborative Retirement Blueprint is our 6 step process for getting past a lot of unanswered questions and to a point of more stability and predictability around your retirement.


The name says it all...


It's Collaborative. 


That means you're involved in the design, layout and building of your plan.  Not only will you have a better understanding of everything as a result, but that in turn will lead to you becoming way more confident about your financial well-being and outcome.  And that, in turn, leads to a better life overall.


It's YOUR Retirement.


We'll be working to get all your ducks in a row. 


For example, the unique investment risks that you'll be especially vulnerable to during retirement (called Sequence of Returns risk), creating a withdrawal strategy from your qualified retirement accounts that doesn't involve the IRS getting the lion's share, and you getting a better handle around making your money last your whole life.


It's a Blueprint.


Well, not exactly.  More like a well-organized binder.  In it will be all the documented planning we do together, laid-out in different sections: from your primary goals and concerns, to your retirement cash flow analysis, your tax planning strategies and your Bucket Plan and investment strategies, to name a few.  It's well organized... so it's easy to refer back to anytime you want.  And it's easy to review and update whenever changes might be warranted.

Who It's For

The program is ideally suited to benefit you if:

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    You are retired or planning to retire within the next 5 years
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    ​You want real education and guidance to improve your financial outcome in ways that make sense to you
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    You want to have a clear mental picture of how your retirement will play out
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    You want a well-planned and written plan that gives you greater peace of mind
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    You have at least $500K in retirement assets

How Does It Work?

The Collaborative Retirement Blueprint is a 6 step process done over a series of 3 to 4 in-person meetings with Reno, or a team member working directly with him.

Step 1: ​Prioritizing Your Goals & Concerns

The first thing we do is talk about your main goals and concerns. 


For example, you might be concerned about running out of money in retirement or paying too much in taxes.  Perhaps it’s protecting your money from a market decline or making sure your income and assets keep up with inflation.


You might also have some specific goals in mind, like retiring by a certain date, enjoying travel and hobbies or planning for the next generation.


We’ll help you formulate a game plan by discussing all of these, and they will be our guide as we create your Blueprint together.

Step 2: Optimizing Your Guaranteed Income Sources & Budget

One of the most important aspects of a successful retirement is having a “true” budget.  


A true budget is simply a realistic estimate of how much money you will need on a regular basis to meet all your living expenses.  We will help you develop one if you haven’t already done so.

 

We’ll also estimate, help you optimize and document all your sources of guaranteed income.  We discuss the best time to take your Social Security benefits and how to elect your pension. 


If you currently own an annuity, we’ll calculate the annuity income and discuss how to best utilize that policy.


This step will determine if you have an income gap, and how much you’ll need to draw from your savings and investment during your retirement.

Step 3: Creating Tax- Efficiency

Here is where we’ll focus on tax-efficiency (that’s a fancy word for keeping Uncle Sam out of your affairs as much as possible). 


This could involve strategies that might at first sound counter-intuitive.  For example, sometimes it makes sense to withdraw more money from your retirement accounts than you need to.  We call this “bracket-bumping”, and it could help lower your overall tax bill on your retirement accounts, reduce future RMD’s and maximize your Roth IRA accounts in retirement.


This could also involve discussing a strategy for harvesting long-term capital gains at lower tax rates.


Finally, we’ll educate you about tax-efficient investment vehicles.

Step 4: Identifying & Addressing Risks

There are several unique risks that are specifically associated with retirement.  In this step we’ll look at what risks could affect your retirement the most.


Some of these might include investment risk, Sequence of Returns Risk (specifically, the risk of the market decline while you are withdrawing from investments), longevity risk (the risk of outliving your money), inflation risk and healthcare/long-term care.

Step 5: Investing Accordingly

After identifying your needs, your goals, a taxation strategy and the primary risks, it’s time to formulate an appropriate investment strategy. 

This includes building Bucket Plan and determining the right mix of investments according to your individual risk tolerance.


We’ll educate you about evidence-based investing and low-cost investment vehicles.  And if appropriate, we’ll help you evaluate various options for annuities, long-term care, or life insurance.

Step 6: Monitoring Your Progress

Once your plan is built, it’ll be important to monitor it and make sure you’re still on track throughout your retirement.  You might need to make periodic adjustments over time as things arise.


Some circumstances where you might need to adjust are tax laws changes, a major life event (buying a new house, death of a loved one), if your appetite for risk has changed or if your budget changes.


We’ll also help you during key events, such as starting to collect your RMD’s, electing Social Security or Medicare benefits at the right time or triggering income on an annuity at the right time.

Copyright 2018 Smart Money Financial Advisors, LLC