Retirement Income

The Income Challenge! 

  • Limited or zero pension income
  • Uncertainty in Social Security
  • Growing Life expectancies
  • Increased market volatility
  • Low interest rates

We Get It!  The Retirement Income Challenge demands outside-of-the-box thinking.  We craft client specific income plans using just that kind of thinking.  In retirement you must consider longevity, sustainability, inflation and sequence of returns.  Fortunately, there are a number of creative ways to transition from accumulation to distribution of wealth.

The Bucket Approach

A unique strategy.  Think of an investment portfolio laying on it’s side.  By segmenting your investments into multiple distinct buckets we are able to manage investment risk (the probability of losing value) and longevity risk (the probability of you getting really old) simultaneously.  Each bucket will be used to hold assets in five year increments.

Bucket #1. The first five years of income are produced by very conservative investments. Each subsequent bucket is proportionally smaller, features increased risk and is held for a longer period of time.  As you move through retirement each bucket is converted to very conservative investments and consumed. Bucket two becomes bucket one and so on.  Ideally, the final bucket is left to your estate.

The Bucket Model
The Bucket Model


Personal Pension Plans

When appropriate certain insurance products can be an excellent tool to compliment a specific retirement income plan.

Distribution Portfolios

Chickens Or Pigs?  If you were a farmer and had to decide between two types of livestock which would you choose; Chickens or Pigs?   One distinct difference between a pig and a chicken is eggs!  You don’t have to consume the chicken to eat.  Pigs, on the other hand pay a high price for your breakfast.  This is much like using capital gains in stock portfolios for income.  As long as the stocks gain (fat pigs) all is well.  However, when stocks drop in value (skinny pigs) more assets are needed to keep you fed and the strategy can fall behind-often never to recover.

We prefer chickens.  We scour the marketplace for investments that have a history of paying consistent dividends (eggs) and we believe have a reasonable potential for appreciation over time*.


 *Past performance is no guarantee of future results.


Good plans shape good decisions. That’s why good plans can help elusive dreams come true.

Lester R. BittelAuthor