1. Longer Term
$1,000,000
Contingent
5 years?
Cash
Flow
General Account Example
Total Account $2,000,000
“Bad years” Annual Income
$200,000
Normal Annual Income
$300,000
Normal Annual Expenses
$300,000
“Bad years” Annual Expenses
$400,000
Plug in your own numbers, are you managing to needs?
Ideal General Account Allocation?
2. Longer Term
$1,000,000
Contingent
5 years?
Cash
Flow
Allocate long term
in a predictable environment
seeking growth
“Bad years” hedge could be
laddered to match historical spreads
Cash
Seek reasonable returns Manage Admin Expenses
Seek certain maturities
Is your account structured like this?
3. A Predictable Range of ReturnsOther
International
Stocks
Small Cap
Value
Small Cap
Growth
Large Cap
Value
Large Cap
Growth
Bonds
Cash
We like building and maintaining these
So we can provide that
952-224-9085
rick@adamshansen.com
4. Longer Term
$
Contingent
5 years?
Cash
Flow
Is there an allocation demonstrably
matched to this need?
Is this a Bond ladder or…?
Normal Annual Income
$
Normal Annual Expenses
$
“Bad years” Annual Expenses
$
What is your situation?
Editor's Notes
They go through all of that to get to this, a predictable range of returns. If the portfolio were not reallocated to maintain your risk, this would be a snap shot rather than a portfolio forecast. The investment strategy allows us to have some confidence in long term results. This graphic shows our conservative portfolios expected results. The lower line shows us to be at or above that line 95% of the time, the upper line does the same with the high end of what is possible