Retirement Planning2018-11-13T19:20:33+00:00

Retirement Planning

At some point in retirement, your challenge is replacing your salary or business income with Social Security, possibly pensions, and income generated by your nest egg. Odds are, you’ll come to the point when you need your retirement nest egg to provide significant income every month for the rest of your life. Whether you’ve accumulated $500,000 or $50 million, it’s critical that you manage your nest egg to provide your desired income for life and an adequate cash reserve — all with some certainty.

Bottom line: Retirement is about cash-flow management.  How do you manage your assets to generate the most after-tax income possible?  This has to be balanced with your other goals and your situation.  For some it is important to maximize income after attention is given to passing on money to heirs, and their biggest challenge is cutting income and estate taxes.  For others, the kids can have what is left, if anything and their total focus is on maximizing their income.  Either way it is tax strategies to reduce taxes and generate income that can be counted on in the face of market crashes, lawsuits, and taxes.

What is your plan for optimizing your cash flow?  Let’s see if we can make it better.

Many people think that if their assets grow enough, they’ll have enough income for life. It’s important that you understand that the market is a great place to grow money, but a very challenging place to withdraw money. That’s why a custom financial plan is required to provide a high probability of tax-minimized lifetime income.

Advanced Retirement Strategies


Outdated traditional financial planning is based on the Modern Portfolio Theory and the Efficient Frontier.

These concepts suggest that there is some optimal combination of stocks and bonds that offers the highest returns at any given level of risk. Used as an investment strategy, it provides no protection of sequence of returns risk and running out of money.

The Modern Portfolio Theory was intended to apply to large, ongoing pools of money, not individual investors who, on their own, need income from investments over a specific period of time.

According to The American College, current research shows that there is “a better efficient frontier” — a better way to invest that offers higher returns and more predictability of income.

This better approach is accomplished by replacing much of the bond portion of the portfolio with a “risk-free asset.” This may sound counterintuitive, but here’s what makes this approach so powerful:

  1. Adding a “risk-free asset” provides greater predictability of lifetime income because the risk-free asset can be used for income needs if and when the risk portion is down (i.e., a market downturn). This way, you don’t lock in losses. Remember, the goal is to always sell high.
  2. Certain risk-free assets can provide dependable lifetime income. Once income is insured, then reserves can be invested for high growth. Volatility is less damaging since there is no need to withdraw money from the market each month. This freedom to access withdrawals from a volatile market portfolio when the account is up allows for greater overall growth and removes sequence of returns risk!
  3. Certain risk-free assets have outperformed some long-term consumer stock and bond portfolios.1

Obviously, a retirement plan needs to be designed for your goals, challenges, opportunities, and realities, but having the knowledge of advanced planning tools, like “a better efficient frontier,” allows Heafner Financial to create a more effective plan.

1Dalbar QAIB Study – 2013 Mutual Fund Returns vs. Investor Performance

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Our Philosophy…

You may ask: What’s in a logo? We want our logo to represent our philosophy. Our logo is a lion in winter. We want you to be a lion in the winter of your life — leading an independent, abundant, and satisfying life — and finish strong! Bring as much passion and spunk to your winter years as you did during your spring, summer, and autumn years. This requires your passion and a great financial plan.

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10700 Sikes Place
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Charlotte, NC 28277
(704) 552-1230
(704) 552-1281
info@HeafnerFinancial.com

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Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors.
WealthGuard is a portfolio monitoring system, which identifies a client’s maximum portfolio downside or loss and indicates that immediate action is required in order to limit losses per the clients’s pre-determined risk tolerance. It is not an actual stop loss, and may not automatically sell the individual securities in the portfolio. Therefore, the WealthGuard Value is a reference point to encourage a conversation between Heafner Financial and the client, and to determine if the client/s would like to liquidate the portfolio and move the assets into cash, reset the WealthGuard percentage, or reallocate to a different risk profile. Investing entails risks, including possible loss of principal. The use of tools cannot guarantee performance. Past performance is no guarantee of future results.
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