PLANNING FOR EVERY STAGE OF YOUR LIFE

Congratulations! You’re here because you know the person that matters most in your retirement planning is you.

No matter what stage you’re in – early in your career, actively contemplating retirement or already retired – we’re here to help. When it comes to planning for and living in retirement, patience and discipline are much more than virtues – they’re necessities. While many people seem to think in terms of that single date, we’re quick to point out that the most important part of retirement is all the days that come after day one – because today’s retirements are more active, more complex and longer than ever before.

We help our clients plan for all the goals and stages of a full, long-term retirement. We help them understand how important it is that income not simply last, but grow. We help them quiet the media “noise.” And we help them temper the emotions – from irrational exuberance to an overabundance of caution – that can hinder even the best financial plans.

Here, we approach retirement planning with patience, discipline, and reason. We filter out the things we can’t know, carefully analyze the things we can and help you develop a unique financial plan for your retirement – from day one on.

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The Munn Gray Dynamic Allocation Investment Process™

Our proprietary process is a structured, unemotional investment process that combines asset allocation, a focus on relative strength, rebalancing and diversification to help develop and implement a customized financial plan capable of addressing your needs and risk tolerance in a tax-efficient, economical manner. It provides a proactive approach which includes a selling strategy that can help make your portfolio more conservative when we feel conditions warrant it, and help reduce the chances that your portfolio suffers an unrecoverable loss. This process also provides tactical modifications that could allow your portfolio to benefit by emphasizing asset classes that are outperforming (relative strength).
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Asset Allocation

Asset allocation is a long-term strategy designed to help investors achieve their financial goals without assuming undue risk. By allocating your assets to a diverse variety of sectors and investments, we attempt to increase the likelihood of generating a more consistent, positive return over the long term.
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Rebalancing

The investments in your portfolio will perform according to the market. Over time, your portfolio’s current asset allocation will deviate from your original target asset allocation. We typically rebalance portfolios on an annual basis to bring them back in line. Rebalancing a non-retirement account could be a taxable event that may increase your tax liability.
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Relative Strength

Relative strength is a measurement of performance relative to a benchmark or to the rest of the universe. Relative strength can be used to find the strongest trends in a market or to identify the strongest asset classes or sectors in a given universe.

Getting Started

Benefits of Starting Early

The main benefit of starting early is to take advantage of the power of compounding. Compounding interest allows you to earn interest on both the principal you invest and the interest you earn – potentially enabling you to turn a small sum into a substantial one over time.

 

When saving for retirement, or another future goal, consider using dollar-cost averaging as a strategy – the process of making regular investments on an ongoing basis, regardless of price; for example, buy 100 shares of an investment each month, quarter or year. You are aiming to buy more shares of a security when its share price is low, and fewer shares when its price is high. Over time, it’s likely the average cost per share will be lower than the average market price. For many, this is the most realistic way to save toward retirement because these periodic investments come from paycheck as opposed to having a lump-sum of money to invest all at once.

Managing Risk

Managing investment risk during the early stages of building wealth may require a little different strategy than managing risk for people nearing or in retirement (see our DAIP™ process).  The primary reason for this is that you may have time to recover and you are likely not living off your nest egg .  Not everyone who is just getting started is younger but if you are, the statistics show that time in the market is far more important than timing the market.  Market corrections occur virtually every year and by diversifying your investments among several asset types, this may enable you to take advantage of growth potential in different sectors and various financial markets. Focusing your money in one asset can be very rewarding if you guess correctly and very costly when you make a mistake.  You may want to avoid placing your retirement savings in only one type of asset.

Also consider dollar-cost averaging which is the process of making regular investments on an ongoing basis, regardless of price.  This can make the average cost of your investments lower than the average market price over time.  Although dollar-cost averaging may not mitigate market, inflation, and longevity risks, it typically offsets their impact on the value of your investments.

Creating a Plan
First, make sure your retirement team is in place, starting with your financial advisor. Depending on your situation, we may also act as your team’s “quarterback,” coordinating and working with family members, your CPA, an estate attorney, and insurance and trust professionals. Next, establish your priorities. We can assist you in understanding factors that will impact your retirement plan, such as your retirement lifestyle, risk tolerance, retirement date, unknown risks and your desire to support your family members or a favorite charity. Our unique process of retirement planning uses a method called Monte Carlo analysis, that calculates a probability of success in achieving your goals. This helps you plan for and maintain your standard of living while meeting the goals you have in life. A meeting with an MGFA advisor will help you develop a plan that helps meet your needs.
Changes in Lifestyle

Whether you’re changing careers, buying a new house or starting a family, we can help you live the life you choose today, while still prudently planning for the future.

Wherever your work or life leads you, we can assist you in managing your cash flow and allocating your resources, helping you reach both your short- and intermediate-term goals without endangering your long-term plans.

Nearing Retirement

Business Succession

An exit strategy is a key to retiring, selling your business or shutting your business down. If you don’t have a business succession plan, we can help.

If you’re a small business owner and haven’t already determined your exit strategy, don’t wait any longer. Among many other decisions, you’ll need to determine the most appropriate structure for divesting your business and tapping into the value it represents. When you are ready to remove yourself from the business, there are several options you could consider when thinking through this part of your planning. You could sell it to a competitor, sell it to one or more key employees, or keep it in the family.

Positioning yourself to reap the benefits of the work, time and effort you’ve put into your business requires time, thought and skill. Our team can help you make these decisions along with several other options to consider.

Assessing Your Current Situation

Do you know how much money is adequate to last through your golden years? It is a highly personal question and really depends on your lifestyle and spending habits.

Chances are you should reevaluate your retirement plan. Your financial circumstances, personal situation or retirement goals may have changed since the last time you reviewed your plan. Market turbulence may also have adversely affected your portfolio, making a fresh look important.

Making a Plan
First, make sure your retirement team is in place, starting with your financial advisor. Depending on your situation, we may also act as your team’s “quarterback,” coordinating and working with family members, your CPA, an estate attorney, and insurance and trust professionals. Next, establish your priorities. We can assist you in understanding factors that will impact your retirement plan, such as your retirement lifestyle, risk tolerance, retirement date, unknown risks and your desire to support your family members or a favorite charity. Our unique process of retirement planning uses a method called Monte Carlo analysis, that calculates a probability of success in achieving your goals. This helps you plan for and maintain your standard of living while meeting the goals you have in life. A meeting with an MGFA advisor will help you develop a plan that helps meet your needs.
Evaluating Your Retirement Income

Although many individuals nearing retirement have at least one 401(k), IRA or defined benefit plan, rarely will those income sources meet the full range of retirement expenses.

By working with us, we can help determine how much you will need to withdraw from your retirement portfolio to live comfortably in retirement. The less you withdraw, the better your chance your assets can generate income through the duration of your retirement. The general rule of thumb is a maximum withdrawal of 4% to 6% per year, but you may need to withdraw more or less depending on your specific circumstances.

Planning for Social Security

Most Americans consider Social Security benefits to be a significant source of reliable income in retirement. Deciding how and when to start drawing benefits will have a significant impact on your income, and thus your lifestyle in retirement, so it’s especially important to understand the options available to you.

The decision around when to begin taking Social Security is a key factor – but there are other important factors to consider.

  • Your health and life expectancy
  • Your spouse’s or ex-spouse’s benefit
  • Whether or not you plan to work after age 62
  • Your taxable income or other income sources in retirement
Managing Risk

Learn how to manage risk as you get closer to reaching retirement

Regardless of your age or your financial situation, every investment decision entails some sort of risk. We will work with you to identify the factors and risks most relevant to your situation and plan for them, including:

LONGEVITY Longer life expectancy means your assets have to last longer. You have to consider the possibility of living 20 or 30 years after you retire.
INFLATION For example, health insurance premiums and prescription costs are rapidly increasing. If you are retired, this would increase your cost of living, erode the value of your savings and reduce your purchasing power.
SPENDING AND
WITHDRAWALS
Overspending, living beyond your means or withdrawing more than the recommended percentage from your retirement funds can adversely affect how long your assets last.
MARKET RISKS Market declines and the timing of these declines pose risks. How and where your assets are allocated across different asset classes plays a key role in managing this risk.
UNKNOWN RISKS Major health events, disability, long-term care needs and other unexpected occurrences can complicate a retirement plan.
Healthcare Considerations
It’s never too early to start thinking and planning for retirement, especially when it comes to major expenses like healthcare. For one thing, Americans are living longer. Yes, increased longevity is wonderful, but it also comes with a greater risk of experiencing changes in health, which could mean greater expenses as healthcare costs rise. The fact is, even with insurance and Medicare, out-of-pocket healthcare costs in retirement can be expensive, with the potential to derail even the best-laid plans. Understanding potential costs, evaluating your options and developing a comprehensive plan that accounts for those expenses can help you achieve a secure, comfortable retirement.
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5 Steps To Plan For A Comfortable And Secure Retirement Munn Gray &Amp; Associates Private Wealth Manage

Nearing Retirement?

This guide will provide a better understanding of where you are now and where you need to be at to establish security and confidence going into your retirement.
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Living In Retirement

Give Your Plan a Checkup
Once you’ve retired, managing your money is more important than ever. During your retirement years, your personal goals and situation — as well as the economic environment — are likely to shift. These changes require careful scrutiny, perhaps resulting in adjustments related to your goals, your portfolio or both.
Risk Management
Managing investment risk takes on a much more prominent role as you enter retirement.  The reason for this is that once retired you may be converting your savings in to an income stream that needs to last as long as you do and there may not be enough time for you to recover.  Really large market declines early in retirement could possibly derail your ability to stay retired.  For this reason we have developed the Dynamic Allocation Investment Process ™ which focuses on long term growth while putting an additional emphasis on reducing risk as our economic indicators suggest an economic recession draws near.  Simple math is not so simple sometimes:  A 10% portfolio loss requires a mere 11% portfolio gain to get back to even.  A 50% portfolio loss requires a 100% portfolio gain to get back to even and it is compounded even further once you factor in the monthly withdrawals mentioned earlier.  Why not learn more about how we help our clients preserve their retirement?
Healthcare Considerations

Many retirees underestimate how much they’ll need to cover healthcare expenses. In fact, a Center for Retirement Research study recently estimated out-of-pocket costs for a healthy 65-year-old couple to be $260,000 to $570,000 for their entire retirement. Income from investments and Social Security can go toward paying ongoing medical costs, such as Medicare premiums, deductibles and copays, but as healthcare costs continue to rise, this could place a significant strain on your retirement. We can work together to anticipate your healthcare expenses in retirement and account for them within your overall retirement income plan.

Another risk-management option is long-term care insurance, which covers a range of nursing, social and rehabilitative services for people who need ongoing assistance due to a chronic illness or disability. While you can’t know for sure if you’ll need long-term care or for how long, a comprehensive policy can help you plan for the unexpected.

Legacy Planning

Depending on your financial situation, you may be confident you can fund a comfortable retirement and still allocate funds to leave an inheritance for family members or to donate to a favorite charity. The first priority should be ensuring your expenses can be met before you leave a monetary legacy behind.

We can assist you with your estate and legacy planning, including helping you to optimize your assets, potentially mitigate tax implications, and determine the course most appropriate to your situation. In addition, we can help you select effective vehicles to implement your plans.

Keep in mind that money isn’t everything. Passing on ideals, such as ethics, morals, faith, and religious beliefs, is 10 times more important to both baby boomers and their parents than the financial aspects of inheritance, according to the 2006 Allianz American Legacies Study.

Withdrawals and Tax Implications

In addition to Social Security benefits, you probably have at least one IRA, 401(k), pension plan or other assets you’re relying on now for income – or counting on later – to finance your retirement years. At this stage we feel that you should work with a professional to maximize the benefits you receive from any withdrawals you are making or plan to make.

Tapping Social Security

Although you’re entitled to draw Social Security benefits as early as age 62,
tapping into your benefits before full retirement age can permanently reduce your benefits. In general, electing to delay your benefits past full retirement age – up to age 70 – will increase the amount you are eligible to receive.

When to start taking Social Security benefits depends in large part on your income needs and your health. It’s also important to consider how the amount of your monthly benefit might affect your overall retirement plan, including implications for withdrawal rates and your tax situation, among other factors.

Coping with the Unexpected

Widespread economic weakness and market fluctuations have taken a toll on many investors. If you are at all concerned your retirement plan may no longer be sufficient to meet your needs, don’t delay taking action. While there are no magic fixes, a number of effective strategies do exist for potentially mitigating losses, generating additional income and planning for growth, including:

  • Planning for long-term care needs not covered by Medicare or other insurance
  • Paring your spending and rethinking non-essential goals
  • Allocating a portion — or a greater portion — of your portfolio to undervalued, growth-oriented investments
  • Preserving income with financial products
  • Hedging income against rising inflation with investment options that adjust to changes in the inflation rate
  • Returning to work on either a full-time or part-time basis

Download the Retirement Guide Now

This guide will provide clarity on the next steps you should take to reduce uncertainty and gain confidence knowing that you are getting the most out of your retirement.
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