MANAGING Your Retirement Income

Income Portfolio Strategies

We're all familiar with the concept of an investment portfolio. Wikipedia defines it as "an appropriate mix or collection of investments held by institutions or a private individual." It explains that "holding a portfolio is part of an investment and risk-limiting strategy called diversification."

A well-diversified, professionally-managed investment portfolio can enable you to pursue various financial goals in the accumulation stage of your life. As you approach, and move into, retirement, a customized income portfolio plan is essential for enabling you to close the gap between your projected income needs and your projected income sources without worrying about, and being dependent upon, the gyrations of the stock market.

What is an income portfolio? Whereas an investment portfolio uses a mix of assets, including stocks, bonds, and other types of investments with the goal of minimizing investment risk, an income portfolio uses streams of income to accomplish the same objective. The income streams are often laddered in order to dovetail with changing expense levels not funded from other income sources throughout retirement. 

Using Fixed Income Annuities to Build Your Income Portfolio

One of the most efficient ways to provide for different and distinct income streams to match expense needs associated with different stages of retirement is to use a customized blend of fixed income annuities. Unlike any other income planning strategy, in addition to closing projected income gaps, fixed income annuities can be structured to provide predictable inflation-adjusted income streams as well as tax efficiency for the nonretirement portion of one's portfolio. 

Similar to a traditional investment portfolio that employs diversification strategies to reduce investment risk, we have at our disposal two distinct types of income portfolio strategies:  immediate and deferred. The difference between these two strategies and the types of income streams that we include in our clients' income portfolios are discussed in the next section, Immediate and Deferred Income Portfolio Strategies.

Income Portfolio Strategy Compensation

In connection with our commitment to our clients to always put their interests first, we have a transparent, full disclosure philosophy at Retirement Income Center. This applies to all aspects of our relationship with our clients, including compensation. 

Whenever we implement one of the foregoing income portfolio strategies, it's done by Robert Klein in his capacity as an independent licensed life insurance agent (California Insurance License #0708321 and three nonresident state insurance licenses) through his association with Crump Life insurance Agency.

Bob is paid a commission by the life insurance company with which a particular solution is implemented. The commission may be a one-time payment or it may be a series of payments over several years. The amount and duration of the commission varies depending upon the particular product and company, is in accordance with industry standards, and is always disclosed to clients prior to any sale.

Always acting in his capacity as a fiduciary to his clients looking out for their best interests, Bob never bases any recommendations for any products or services on the amount of potential compensation. As a CPA, Bob is prohibited from accepting any fees or commissions from any parties solely for the referral of any clients to products or services of a third party.

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