Retirement Planning


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Retire Comfortably

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  • Retirement Planning

    1. 1. John K. Bahr, WMS Certified Investment Management Consultant Raymond James Private Client Group 249 E NC Hwy 54, Ste. 300 Durham, NC 27713 888-228-0931 [email_address] Helping People Retire Comfortably
    2. 2. What Makes Us Unique? <ul><li>Our Mission </li></ul><ul><li>  </li></ul><ul><li>We serve a limited number of clients who understand the value of having a dedicated and trusted financial advisor to help them and their families achieve their financial goals. </li></ul><ul><li>  </li></ul><ul><li>Our success is based on offering something others do not, a client experience that is grounded in communication, service and education . </li></ul><ul><li>Our clients can expect not only a personalized approach to financial planning but a professional relationship that they will find enriching and valuable . </li></ul>
    3. 4. Your Wealth Management Team Raymond James Private Money Managers Alternative Investment Specialist Insurance Specialists Corporate Trust Services Concentrated Stock Specialist Trading and Research Client and Family John Bahr & Team Local CPA Local Attorney
    4. 5. <ul><li>Independent non-proprietary advice-Fee based aimed at being Trustworthy </li></ul><ul><li>2) Developed resources and experience dealing with income distribution planning, estate planning, retirement projections, tax efficient investment management </li></ul><ul><li>3) Long Term Care licensed with non-captive companies and insurance resources for protection planning </li></ul><ul><li>4) Raymond James Trust Company for Planned Giving and Corporate Trustee work at a low minimum ($500k estate) </li></ul><ul><li>5) Ability to donate part of our fees to client’s favorite charity (Charitable Partners Program) </li></ul>
    5. 6. Charitable Partners Program <ul><li>While the investor retains full custody of his or her assets, the donation comes directly from John Bahr & Team. </li></ul><ul><li>We donate a portion of our net management fee quarterly to the charitable organization selected by the investor or the investor has the option of choosing one of the charitable organizations that we already have a relationship with (Must be charitable and non-profit organizations under rule 501(c) of the IRS tax code.) </li></ul><ul><li>A benefit to the client is that there is no added cost or effort for them. The charity can count on donations from the investor to support its cause with no added effort as well. There is also no added cost to the charity. </li></ul>
    6. 7. Common Investor Mistakes <ul><li>#1:  Treating Investments Like a Part-Time Job and Not a Business  </li></ul><ul><li>#2:  Not Having an Asset Allocation Strategy to Manage Risk </li></ul><ul><li>#3:  Trying to Time the Market  </li></ul><ul><li>#4:  Letting Emotions Dictate Investment Decision Making and Not Discipline </li></ul><ul><li>#5:  Ignoring or Underestimating How Much Future Income Will be Needed   </li></ul><ul><li>#6:  Expecting All Investments to Succeed ALL the Time/Not If Properly Diversified  </li></ul><ul><li>#7:  Making Initial Investment Decisions Based Solely on Past Performance </li></ul><ul><li>#8: Getting Caught Up in the Relative Performance Game Instead of Personal Needs </li></ul><ul><li>#9:  Inadequate Due Diligence Leading to Hanging on to Investments too Long </li></ul><ul><li>#10:  Not Having A Trusted Financial Advisor/Planner </li></ul>
    7. 8. Individual Investor Behavior Stocks Bonds Stocks Bonds Net Flows by Broad Investment Categories at Major Inflection Points in the Market Greed 2000 Fear 2002 Investors have historically added funds to asset classes that have performed well recently, often as those asset classes are taking a turn for the worse. THE RESULT: Many individuals investors buy high and sell low. Past performance does not guarantee future results. As of 12/31/02 ($ billions) Source: Investment Company Institute
    8. 9. Written Goals = Success! <ul><li>Long Term (10 years and longer) </li></ul><ul><li>Goal: Having enough income in retirement </li></ul><ul><li>(Retire at 55-60). </li></ul><ul><li>Strategy: Maximizing qualified plans and IRAs as supplement. Income Planning. </li></ul><ul><li>Goal : Provide education for children in 14 years. </li></ul><ul><li>Strategy: Use of 529 Plan and Automatic Investment Plan monthly. Gifting to 529 Plan </li></ul>
    9. 10. The Smith Family <ul><li>Personal Financial Policy Statement </li></ul>
    10. 11. Family Security <ul><li>Life Insurance- </li></ul><ul><li>General Strategy: Review policies </li></ul><ul><li>Date Last Reviewed: </li></ul><ul><li>Next Action: Request Current Ledger </li></ul><ul><li>Disability Insurance- </li></ul><ul><li>General Strategy: Review / Supplement </li></ul><ul><li>Date Last Reviewed: </li></ul><ul><li>Next Action: </li></ul>
    11. 12. Estate Planning - Personal <ul><li>Living Wills- </li></ul><ul><li>General Strategy: Meet with attorney </li></ul><ul><li>Date Last Reviewed: </li></ul><ul><li>Next Action: Meet with attorney </li></ul><ul><li>Long Term Care- </li></ul><ul><li>General Strategy: Review at age 50 </li></ul><ul><li>Date Last Reviewed: </li></ul><ul><li>Next Action: Discuss with family </li></ul>
    12. 13. We Provide Accountability <ul><li>Personal Meeting – Frequency: Quarterly </li></ul><ul><li>Reporting – Frequency and Types: Monthly </li></ul><ul><li>We acknowledge and concur with this Personal Financial Policy Statement (PFPS): </li></ul><ul><li>X__________________ Date:________ </li></ul><ul><li>John Smith </li></ul><ul><li>X__________________ Date:________ Mary Smith </li></ul>
    13. 14. Step 1: Discovery  Define Success We will work closely with you to: Fully Understand Where You Are Now B Clarify Where You Want To Go Our Objective : Develop a clear understanding of what is important to you and how we can help you. A For illustrative purposes only. Investing involves risk and you may incur a profit or a loss
    14. 15. Case Study: Correcting Common Mistakes: A Proven Approach to Portfolio Construction In order to manage risk to achieve long term financial goals, we follow a disciplined four step process: Step 1 Step 2 Step 3 Step 4 Diversification among different asset classes may lower overall volatility, but does not ensure a profit or guarantee against a loss. Develop a sense of the future through forward looking risk, return and correlation assumptions for different investment options Construct an asset allocation diversification approach for effective overall risk management Search for and hire best-of-class managers for our clients that have compensated investors for taking active risk Continuously monitor allocation, managers and progress towards client goals
    15. 16. Step 2: Diagnose & Organize <ul><li>Once we know how you define success, we will identify where there are gaps by: </li></ul><ul><li>Completing our “ Financial Planning Checklist .” </li></ul><ul><li>This takes a comprehensive view of your current financial status and helps us to create an action list. </li></ul><ul><li>Reviewing your investment statements, including retirement plan assets, tax returns and other important documents. </li></ul><ul><li>Beginning the process of organizing your financial life by creating a “ Financial Data Organizer .” </li></ul><ul><li>Our Objective : Simplify your life by organizing all your financial information . </li></ul>
    16. 17. Step 3: Plan Development <ul><li>We will construct your Financial Blueprint </li></ul><ul><li>Comprehensive Financial and Retirement Plan </li></ul><ul><ul><li>Connects your income and expenses with your investments </li></ul></ul><ul><ul><li>Summarize your spending priorities </li></ul></ul><ul><ul><li>Our Objective: </li></ul></ul><ul><ul><li>Help Clients answer the question: </li></ul></ul><ul><ul><ul><li>“ How much is enough?” </li></ul></ul></ul>
    17. 18. Tracking “How much is enough?” <ul><li>Uncertain < 75% </li></ul><ul><li>Not Saving enough </li></ul><ul><li>Inappropriate Allocation based on long term goals </li></ul><ul><li>Sacrifice >90% </li></ul><ul><li>Saving too much </li></ul><ul><li>Spending too little </li></ul><ul><li>Taking on too much Investment Risk </li></ul>Confidence & Comfort (in “balance”) High level of confidence and Peace of Mind How do we track “How much is enough? Central to the Wealthcare process is the Confidence calculation . This analysis simultaneously evaluates your goals, your investment allocation and your assets to determine how confident you can be that your goals will be met. The Wealthcare process subjects your goals and investment strategy to this sophisticated ‘stress testing’ process which simulates 1000 market environments, both good and bad. Your Confidence or Comfort is the percentage of the 1000 simulations that achieve your goals. For example, if you achieved all of your goals or more in 830 of 1000 tests your confidence is 83%.
    18. 19. Commitment to Communication <ul><li>Quarterly Newsletter </li></ul><ul><ul><li>Market Update </li></ul></ul><ul><ul><li>Personal Note </li></ul></ul><ul><li>Financial Data Organizer </li></ul><ul><ul><li>Annual Updates </li></ul></ul><ul><ul><li>Networth Statement, Asset Titling, Beneficiary Designations and more </li></ul></ul><ul><ul><li>Send to Professionals: Attorneys and Accountants </li></ul></ul>
    19. 20. Keys to Our Relationship Our goal: Your 100% satisfaction with the advice and service you receive. <ul><li>We focus the majority of our time on our clients, and we are selective in building our client base. We are often introduced to new clients by our existing clients and their other advisors. </li></ul>Introductions <ul><li>The success of our long-term relationship, and your long-term investment experience, depends on our maintaining an open, ongoing dialogue. </li></ul><ul><li>We will communicate with you regularly, openly and honestly about your financial plan, including fee schedules. </li></ul><ul><li>If you have a question or concern about the management of your account, your statement, your fees, or just something you heard from a friend, contact us about it. We are here to help. </li></ul>Communication <ul><li>In order for us to give you our best service, it is critical that you be as forthright as possible, providing us with complete and accurate information. </li></ul><ul><li>In disclosing this information, you can be assured that we take stringent measures to protect your privacy. </li></ul>Disclosure Confidentiality
    20. 21. Summary – A Wealth of Values <ul><li>Wealth Management Resource for : </li></ul><ul><ul><li>Affluent Investors, </li></ul></ul><ul><ul><li>Fiduciary reviews (e.g. 401k plans, Endowments, etc.) </li></ul></ul><ul><li>Investment Fundamentals </li></ul><ul><ul><li>Discipline </li></ul></ul><ul><ul><li>Investor psychology </li></ul></ul><ul><ul><li>Goal setting </li></ul></ul><ul><ul><li>Planning and investment discipline </li></ul></ul><ul><ul><li>Objective analyses with a focus on risk management </li></ul></ul><ul><ul><li>Ongoing portfolio and investment monitoring </li></ul></ul><ul><li>Special Services </li></ul><ul><ul><li>Tax loss harvesting </li></ul></ul><ul><ul><li>Portfolio Rebalancing </li></ul></ul><ul><li>Flexible pricing options </li></ul><ul><ul><li>Full disclosure with a potential tax benefit </li></ul></ul>
    21. 22. John K. Bahr, WMS Certified Investment Management Consultant Raymond James Private Client Group 249 E NC Hwy 54, Ste. 300 Durham, NC 27713 888-228-0931 [email_address]