Our Unique Money Method
What Makes Us Unique?
We feel that ideology offers a limited scope for asset management and income planning and can leave many holes that are not adequately addressed. As a result, we developed our proprietary solution, the Unique Money Method to address the limited scope the industry has in retirement planning and attempt to fill the holes that are not addressed in traditional planning.
De-Risking Your Portfolio through
Strategy, Planning, and Execution
Many of the financial service firms in our industry continue to use asset allocation as the sole way to reduce risk in a portfolio. At McPherson Financial Group, this is where we begin the process of de-risking your portfolio; however, we find that using asset allocation modeling for risk reduction is only part of the solution. Asset allocation modeling is still subject to large market swings and interest rate swings that can impact performance and risk on portfolios when used in isolation.
Smart Portfolio Allocation Strategies
Based on an age-weighted asset allocation strategy, for some clients we traditionally believe your total portfolio should have 65% invested in stable, or income-producing assets, and the remaining 35% in growth-orientated investments. However, sometimes we will recommend using non-traditional modeling techniques with the goal of reducing some of the interest rate risk in the bond markets and market risk in the equity markets. Our goal is to minimize market volatility, to increase portfolio stability, and increase overall long-term interest and growth.
Safer Strategies for Greater Financial Security
Many asset allocation modeling uses bonds, high-yield bonds, treasuries, dividend paying stocks, and income funds as stable or income asset management models. One potential flaw in this form of modeling is that there can be significant interest rate risk on bonds and market risk on dividend paying stocks. We do use the above asset types in our modeling in addition to utilizing index annuity strategies that offer guaranteed minimum crediting rates and help reduce market volatility.
Growth-Driven Investment Solutions
Many asset allocation models focus on growth investments like stocks and mutual funds. Sometimes REITs and oil and gas programs will be mixed in to add diversification. Meanwhile, our modeling will not only include those but also mutual fund strategies for our conservative-growth clients. For clients seeking more aggressive growth we may recommend incorporating managed stock portfolios, so stocks can be incorporated strategically to take advantage of money flows and volatility. Our portfolios are also monitored by WealthGuard, an account monitoring software that alerts our client and us when a predetermined level of risk is reached.
Optimized Income Strategies
Typical income models based on portfolios consisting of equities, bonds, and cash typically reflect income at a 4% withdrawal rate. This type of modeling projects funds lasting the standard length of retirement of 30 years or more based on a normal life expectancy. Since we may be using non-traditional asset allocation modeling in your portfolio as an alternative strategy for income and growth, we may be able to increase that income using products offering reduced market volatility and minimum interest rate guarantees.
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FAQs
What Can I Do to Help Protect My Investments from Big Market Swings as I Get Older?
We use innovative portfolio strategies that help safeguard your investments from major market swings, especially as you approach retirement. We use a mix of stable investments and newer options, like index annuities with guaranteed minimum rates, along with ongoing risk monitoring to help keep your savings secure even when markets change unexpectedly.
How Do I Make Sure My Retirement Money Lasts and Stays Safe?
We recommend combining time-tested investments like bonds and dividend stocks with innovative financial products designed to reduce risk and boost stability. These strategies help you balance income and growth so you can feel confident about your financial future.
Is There a Way to Increase My Retirement Income and Keep Risk Low?
Yes—by using alternative investment strategies and products that offer more consistent returns and protect against market ups and downs, we may be able to help you increase your withdrawal rate and make your retirement savings last longer.
Want to learn more about our Unique Money Method?
Fill out the form below to request your complimentary portfolio review and our team will be in touch with you shortly!