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How Retirement Solutions, Inc. Allocates Your Savings with NextPhase™

People With Graphs

A clear investing approach for creating lasting, inflation-adjusted retirement income

Ask Yourself These Questions:

How much can I safely spend?

How much investment risk can I handle?

Are my retirement savings in the right place?

Do I have enough retirement savings to last my lifetime?

Meet NextPhase™

The Strategy

NextPhase Segments
NextPhase Segments Timeline
Your financial advisor will set up a series of income-producing segments, seeking to provide specific amounts of income over the course of your retirement. Optional components for emergencies, or longevity planning, can be incorporated.

Segment 1

NextPhase Segment 1
Segment 1 is invested in a conservative account, used to provide monthly income over the first five years of the plan. Generating predictable income from a conservative account is an ideal way to get off to a good start in retirement. While Segment 1 provides income, the other segments are invested to grow in value, until it is their turn to be converted into a conservative account, and provide predictable monthly income.

Segment 2

NextPhase Segment 2
Segment 2, also invested conservatively, will provide income in years 6-10 of retirement. The income in those years will likely be higher than the amount received in Years 1-5. That’s because segment 2 had 5 years to grow, and when converted, it will provide inflation-adjusted income.

Segments 3, 4, 5

NextPhase Segments 3 4 5
Segments 3, 4 and 5 contain investment allocations with more exposure to equities. Retirees investing in equities seek to achieve higher investment returns with increased risk of loss. Holding these accounts for the longest periods of time increases the chances of meeting long-term goals. The smallest share of your savings will usually be put in segments that seek the highest returns, and are held for the longest period.
NextPhase Segments 3, 4, 5 Timeline
Segment 3 is held for 10 years, Segment 4 for 15 years, and Segment 5 for 20 years. Together, these three segments are earmarked to produce income that, if their investment return objectives are met, will keep pace with inflation. When it becomes time to access a segment to draw income from, the money will be placed in a conservative investment account, just like Segment 1, to help continue your predictable monthly income.

When you know your monthly income is predictable, your retirement becomes clear, even in challenging markets!

NextPhase Increase Income

Segment 6

NextPhase Segment 6
The final segment is the pool that often receives the smallest share of savings, but is held for the longest time – typically 25 years. The objective is to grow at the highest rate, and is available to provide additional income, beyond 25 years. Or provide the financial legacy you desire to leave to children, grandkids, or your favorite charity.

What If I Have An Emergency Need?

NextPhase Reserve Acct
A separate reserve account can be established to access additional income to cover unforeseen expenses not budgeted for at the beginning of your plan. Your financial advisor will discuss the need for this account, and the amount you might want to set aside for unplanned expenses.

Will I Have Enough Money to Last My Lifetime?

NextPhase Longevity
Longevity can create a serious financial risk, because whatever the age, no retiree stops needing income. You probably know someone in their late 80s or 90s. To manage the risk of running out of money, another optional component is to add a Longevity Strategy. Longevity planning starts by allocating a portion of your retirement savings to an annuity to provide a lifetime stream of income.

If the equities in longer-term segments don’t perform well, the monthly income from your longevity strategy acts as a backup to help you meet your monthly expenses. This is an example of transferring a measure of risk away from you, and to an insurance company.

Want to see it work for you?

Don’t enter retirement without a clear plan for generating what no retiree can go without – income that lasts!

Investing involves risk, and you may incur a profit or a loss. There is no guarantee that NextPhase will perform as planned. If the strategy underperforms, the income levels and assets could be significantly reduced.

When utilizing annuities for guaranteed income, these guarantees are based on the claims paying ability of the issuing company.

Timing Risk is a trademark of Wealth2k, Inc. What’s My Income? is a registered trademark of Wealth2k, Inc.