As you approach retirement, you may begin to prioritize more conservative investing and money management. Wanting to protect your personal assets from unnecessary risk is a natural response. Fortunately, a solid financial plan can help safeguard your wealth from market risk, sequence-of-returns, longevity, and inflation risks.
Our Philosophy & Approach to Asset Protection
1. We believe asset protection means safety of principal
While market-based tools like fixed income or bond funds help diversify your portfolio, they don’t safeguard your money. When the objective is preserving principal, we turn to products with minimal risk.
2. We stress tax efficiency in retirement savings and income planning
Paying unnecessary taxes can threaten your financial stability and independence. We recommend strategies and tactics that can minimize your lifetime tax obligation.
Market declines in early retirement can be especially damaging to your invested assets. Withdrawing funds during market downturns can erode your portfolio’s longevity, a phenomenon called sequence-of-returns risk. You’re essentially selling at the wrong time, and it can lead to running out of money in retirement. One way to prevent this is to keep a portion of your savings in conservative investments.
Protecting your assets from tax liability is another important consideration. By minimizing your lifetime tax obligation through tax and estate planning, you can maximize the money left to spend and leave to your heirs. For example, contributing to a Roth IRA or using a Roth IRA conversion can promote tax-efficiency. While you might face higher taxes in the short-term, you can enjoy long-term savings through tax-free growth, income, and wealth transfer.
A major life event, such as the need for long-term care, can also threaten your financial stability. If you have significant savings, you might consider self-insuring by setting aside assets specifically for health care costs. Long-term care insurance, whether a standalone or hybrid policy, is another viable option. You can also transfer money into an irrevocable trust to protect your assets from nursing home or home health care costs.
The good news is you can anticipate and sidestep many risks to your assets with sound financial advice. Talking with a financial advisor professional can help you protect your assets for long-term use and enjoyment.
How We Help You Protect Your Assets
At Johnson Brunetti, we believe asset preservation goes beyond a diversified mix of securities. Rather than relying on fixed income securities and bond funds, we prioritize products with downside protection. These are products that can weather the market cycles of a typical 20- or 30-year retirement. For example, insurance products like fixed index annuities can limit or eliminate downside losses while providing upside potential.
Our primary focus is not how much you’ve saved, but rather what rate of return you need for a successful retirement. Balancing your portfolio risk and return becomes crucial as you age. You may be taking on more market risk than is necessary for your financial goals. We believe in focusing on investments that offer more reliable and consistent returns.
Tax efficiency is another asset protection strategy. Instead of focusing on your annual tax bill, we look at your lifetime tax obligation. We may encourage you to use different financial strategies and investment tools such as Roth IRA conversions. A Roth conversion, which moves tax-deferred assets out of a traditional 401(k) or IRA, can help reduce your long-term tax burden.
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Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
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Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
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Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
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Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
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Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
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Testimonials received in response to Johnson Brunetti survey conducted in 2024. Please click here for a description of the survey and the overall results.
We can help answer the following questions:
- How will my assets fare if there is another Great Recession or DotCom Stock Bubble?
- How can I safeguard against rising health care and long-term care costs in retirement?
- How significant of a risk is rising inflation?
- How can I effectively reduce my tax bills?
- Is it wise to keep all my retirement savings in tax-deferred plans?
- What should I do if my retirement coincides with a market downturn?
We also provide valuable insights into:
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