Our Mission:
Transform money from a source of worry to a resource for fulfillment
THE RETIREMENT INCOME CRISIS
In retirement you're looking at one of two outcomes: either you will outlive your money, or your money will outlive you.
Your dignity and independence will depend on the strategy you've implemented to produce a lifetime and lifestyle sustaining income. We are living longer and may have to support ourselves for longer periods than in the past. Factor in inflation and taxes along with rising health care costs and you need to ask yourself if the total long term return of your portfolio will equal or exceed your withdrawal rate.
Is your investment strategy appropriate?
Have you questioned if buy and hold, static allocation and passive diversification are appropriate strategies? Your investment strategy needs to address growth and change as your wealth grows and changes.
Advanced Portfolio Enhancement Strategy
The liquidity and flexibility offered through no-load mutual funds is fundamental to our investment management strategy. Our innovative qualitative and quantitative Advanced Portfolio Enhancement Strategy identifies funds that are participating in the latest upward trends. Our investment strategy takes advantage of the excess returns provided and the diversification offered by these top-performing funds. Perhaps more importantly we avoid under-producing, troubled areas of the market.
What will you FOCUS on financially?
The average retirement age in this country is 62. Assuming your spouse is also 62 and neither of you smoke, the age at which the survivor's death will occur is 92. So if you retire today, you and your spouse are looking at the probability of a 30-year retirement. Does this seem inconceivable? It might. Many of our parents and grandparents did not enjoy decades-long retirements. But we may. Many of us will need income 30 years after we retire. The trouble is that people cannot invest successfully for a retirement they cannot imagine.
What NEEDS to be done?
The goal, then, is to produce a lifestyle-sustaining income with the capacity to last an average of 30 years. Are you absolutely certain that your income will sustain your lifestyle throughout your retirement? Or will your money eventually run out?
Your long-term financial fate depends on a lifestyle-sustaining income. And the dominant financial issue which governs whether you will have a lifestyle-sustaining income is the preservation of purchasing power!
Emotionally, this is difficult for many people to grasp. Our instincts tell us to protect our principal - but our life experience tells us why preserving purchasing power is so important.
Your income must RISE
Inflation never really stops rising. If 3% inflation continues for 30 years, consumer prices will increase roughly 2¸ times. That's a 60% loss of purchasing power. In the 30th year of retirement, you will need $2.50 of income to purchase the goods and services which $1.00 of income will purchase today.
The price of a postage stamp tells the story vividly. In 1980, a first-class U.S. postage stamp cost 15 cents. Now, that same stamp costs 44 cents.
The long-term investor is well advised to vigorously defend against the loss of purchasing power. Accepting that risk is the erosion of purchasing power is necessary before one can truly make sound portfolio decisions.
INVEST to keep pace
The only rational goal of a long-term retirement portfolio is to produce a dollar income that outpaces or keeps pace with the rate of inflation. Owning a diversified equity portfolio that evolves as the market changes is the surest way to accumulate and preserve wealth over the long term.
The DECISION that matters
At some point during your 30-year retirement when your living costs have doubled, your income will no longer be enough to sustain your lifestyle. As the gap continues to widen, you will start spending principal - and that's the beginning of a spiral into poverty.
You have only one investment decision to make. It has nothing to do with the markets or the economy. It has everything to do with whether you run out of money or not.
If sustaining your lifestyle throughout retirement is your goal, owning a well-diversified equity portfolio is the only answer, because only equities can so peerlessly defend your purchasing power!
What's your plan?
What impact will your behavior and portfolio performance have on your future?
We encourage you to start a conversation with us to learn more about how our proven strategy of investing in top performing no-load funds can produce a lifetime and lifestyle sustaining income.
Nickel Investment Advisors 707- 838- 6971
