Quick Preview:
Our Cornerstone Retirement Blueprint Process is focused around 5 key pillars of retirement planning designed to help our clients achieve the retirement they have always dreamed of. On this episode, we’ll explain the second pillar in our process: investment planning. What can you do with the remaining assets after your income plan is in place?
On This Episode:
As we move through a series on the five key pillars of retirement, the second might be the one most people associate with planning and that’s investing.
For the average investor, this step of the process is deciding which stocks to buy. Most people don’t go beyond that and truly look at all the investment options available to them to help reach their retirement goals.
To help us explain this pillar, Cornerstone Co-Founder and Investment Advisor Daniel Mann joins Jammie Avila to talk about what all investment planning entails. We’ll spend the first part of the show listing some of the options and talking about the benefits. From a REIT to equities to annuities, we’ll touch on a number of different ways we assist clients with investing.
As you’ll find out, there’s a wide variety of asset classes that we utilize for clients. Once we understand your goals and risk tolerance, we’ll sit down and build out a portfolio that uses many different assets in concert with one another. And we can show you how that portfolio will work in different scenarios to show you exactly how much money you’d gain or lose and whether you are comfortable with that. That process includes multiple software programs and Daniel will tell us about those as well.
The final aspect of this pillar is active vs passive management and we’ll provide examples of the ways our team will provide value to your portfolio during this pillar of the retirement planning process.
For us, there’s about 10 or 11 different asset classes that we use in concert with each depending upon the goals and risk of the client.
Timestamps:
1:36 – Once the income plan is established, what do we do with leftover funds?
2:39 – The income plan revolves around
3:22 – Finding tax efficiencies
4:42 – Benefits of a REIT
6:35 – How the Tax Reform Act helps even more.
8:40 – The other asset classes we utilize with clients.
10:35 – Structured notes issued by a-rated banks.
11:51 – There’s 10 to 11 asset classes we’ll balance in a portfolio. Here’s how we come up with that formula.
14:26 – A lot of people don’t know what kind of risk they’re taking on in their investments.
15:28 – Another software program we utilize
18:20 – Investors are concerned about fees and we try to design portfolios with that in mind.
19:48 – What we mean by ‘dry powder.’
22:13 – Why active management can be a big benefit.
23:01 – An example of a client we helped with investment planning during the COVID pandemic.
