Establishing Reliable Retirement Income Portfolios [Video]

Let’s explore how to establish Sustainable, Stable Retirement Income Portfolios


We all want growth in our portfolios and, ideally, that growth at least exceeds inflation. If you don’t have growth in your investments, you’re going to get poorer as you get older, which is not a good outcome.

Usually, you garner growth with either high yielding bonds or with stocks. So, we need those tools in a portfolio. But as you get older, there’s something even more important than growth.


When we’re young and working, hopefully up until about five years before your retirement, you want to concentrate on Return on Investment, often called ROI. You need growth on your investment portfolio.

But when you get close to retirement, you have to start thinking about safety. So, the acronym changes to Reliability of Income.

And that is what we really focus on at Medallion Financial Group and Coast Financial Group. We specialize in building Reliability of Income-focused portfolios.

So, when you’re within five years of retirement, you need to shift gears and concentrate on building a reliable retirement income. You’re still focusing on ROI, but it is first and foremost, Reliability of Income and, secondarily, Return on Investment.

Preventing the Income Gap

In order to establish Reliability of Income, we must first consider all sources of retirement revenue. For example, are you a government employee with a TSP and pension? Did you retire with a pension from your employer or 401k? Do you have a SEP? Rental properties?

You also have to consider Social Security (which is a complicated topic we’ll save for another post).

Then once we’ve established your retirement income, we need to consider reasonable expenses. In the comparison, we often find an income gap.

You’ve got a shortfall between retirement income and paying your basic bills, especially when we consider inflation. Even if your retirement income meets your current expenses, what’ll happen in 5 years, 10 or 20 years? If the gap increases, you will not be able to sustain that.

Further, this retirement income needs to avoid the roller coaster ride of the markets. So, our job is to figure out how to best fill the gap.

Next Steps to Growth

Once we have safely established that Reliability of Income, then we can create a bucket for growth, which is usually invested in stocks and bonds. Not always, but often, we want some growth in addition to the Reliability of Income.

That’s extra money for future expenses, planned or unplanned and even fun money. It’s there if you want to go buy a boat, take a trip or you really like the new Jeep Grand Cherokee. Play money essentially.

So once we establish the Reliability of Income that you’ve grown through Return on Investments, then we’re ready to help you have a sustainable, lifetime income stream so that you can relax, go to the beach, play with your grandkids or your dog. Bottom line: you can relax and enjoy retirement.

If you know friends, family, co-workers, neighbors that would benefit from this information, please pass it on.


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