General account graphic 2
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This document discusses general account examples and ideal allocations. It provides an example account with $2,000,000 total, normal annual income of $300,000, normal annual expenses of $300,000, and "bad years" annual expenses of $400,000. It suggests allocating $1,000,000 long-term in a predictable environment seeking growth, and using a "bad years" hedge of laddered bonds to match historical spreads. It asks if the reader's account is structured similarly and seeks a demonstrably matched allocation to their needs.
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General account graphic 2
- 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