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June 13, 2019

A “floor” that makes your life comfortable and secure.

I had a interesting conversation with a guy yesterday who called me to talk about his planning needs for the gains from his business sale and how to convert them into an investment income plan. After some discourse about various tax ideas and introducing him to the 360 Family Office CPA team we talked about his needs for lifetime income. “What do you need and how do you like things to work?”  Then he told me how he was going to split his money into different sections for his lifetime use and how each would provide a certain income amount.

What became clear was that there was no clear delineation of which assets are in the growth modus and the assets designated for lifetime income. To transition from growing assets to having them produce income is to use a familiar phrase – taking the money off the volatility table.

The income assets must be segregated where they can’t be diminished, eroded or shrunk from volatility of market forces. Market forces include; the stock market volatility, interest rate effects that reduce fixed income values or inflation eroding the purchasing power of cash-flows. Assets and income position have to be carefully allocated so that they create a certain return and a sure way to have the money come into his hands on an annual or monthly basis.   

This process is called creating a income floor. The most important outcome of this approach is that one does not have to have a variable lifestyle, that each year must be adjusted based on investment performance. At 360WR we have a carefully designed process called Seurte (sir tay) that creates the pension type surety of monthly income that our clients overwhelming desire.  

As I related to my new friend – if you desire the confidence and feeling of financial security my Grandpa had from his pension and Social Security payments – rather than an annual review of your financial uncertainty – let’s connect you to eMoney which automatically calculates your monthly expense rate and then we will add up the various social and financial assets and a floor, upside and reserve structure are the result.  

Financial success is a team sport. Losing and a small insecure retirement life is an option that 80% will experience.  Our team is trained, certified and focused on providing you with the 20% outcome that is confidence and surety.  

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