Your Key to a Stable Retirement Income
Financial Strategies Institute uses a proprietary
Retirement Income Pyramid™ to build your
customized plan designed to provide secure
retirement
income.
This process incorporates
many
powerful retirement investment
strategies, and your FSI advisor will help
you identify those most likely to fit your
situation and goals. The process
uses
a pyramid to graphically
illustrate how
you and your financial
planner
together
can build your
retirement
income:starting at
the bottom, adding one
tier at
a
time,
until
you finish at the top.
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Tier 1 - Core Retirement Expenses
The foundation of your retirement income - which is the first tier of your Retirement Income Pyramid™ - is a secure lifetime income that completely covers your basic necessities. This includes costs of housing, cars, gas, groceries, clothing, health insurance, other insurances, taxes, and other necessary expenses. This should be the first priority in planning your retirement income.
A core income must be stable and able to be relied upon to continue for the rest of your life - and your spouse's life. Sources could include Social Security, a pension from your ex-employer, personal pension annuities and other assured cash flow. Provisions for inflation should be included or built into your plan.
Tier 2 - Enjoyment Expenses
The second step in the process, shown as the second tier on the Pyramid, is to cover those expenses that make retirement fun and enjoyable. This would include travel, club membership, hobbies, entertainment, etc. Some people might have aspirations to give humanitarian service or serve a church mission; that would also fall into this tier.
To create this enjoyment income, you allocate some of your retirement funds to investment strategies that will usually produce higher income with some growth potential. It is important to realize that you only allocate money to this tier after you have fully funded the Tier 1 Core income.
Tier 3 - Accumulation Goals
Step three in the process - the third tier of the Pyramid - covers your growth goals. Perhaps you'd like to buy a vacation home or a new boat. Or maybe you would like to help with your grandchildren's college educations. To fund these goals, you need to choose investment strategies that have the potential to provide substantial growth over time, without taking unreasonable risks. Working with your financial planner, you can select investments to target these goals.
Tier 4 - Pass to Heirs
In the top and final tier, we develop estate planning strategies that help you pass your long-term investments on to your heirs instead of leaving them to the IRS. We'll work with you to identify what is needed to leave a real legacy for your heirs using trusts, family foundations and other sophisticated estate planning tools.
Retirement Income Pyramid™ principles guide our strategic planning process as we seek right-fit solutions to help you navigate safely through life's changing seas.
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