We specialize in Income Distribution Planning for Retirement because a comfortable retirement requires more than simply the accumulation of assets to use during retirement. It involves addressing a complex set of decisions regarding pension benefits and Social Security, as well as creating a strategy for drawing income from your investments. All this while keeping in mind the many risks and unknowns that retirees face—everything from health issues to boomerang kids.

Income Distribution Planning involves the transitional process of taking assets from the Accumulation phase (working years) and converting them to the Distribution phase (retirement years). That is, creating a strategy for turning assets into income that you can use during retirement.

At Fleming Wealth Management, we are a part of the Advanced Time Segmentation ® (ATS) Advisor Network and use the ATS ® Strategy to create Retirement Income plans for our clients. ATS ® is a specialized strategy that matches unique retirement income needs with time-segmented investments.

Retirees face 3 major risks:

Longevity Risk – living longer than planned
Market Volatility – poor market returns (especially early in retirement, known as Sequence of Returns risk) that lead to reduced portfolio value
Spending Shocks – large expenditures that may deplete retirement assets

Retirement Income Planning is a strategy that addresses these risks. We believe the best way to mitigate these risks is with a segmented, safety-first approach. As life expectancy increased, retirees are expected to spend 20+ years of their lives in retirement; you shouldn’t have the same strategy for Year 1 money as you do for Year 20 money.

Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results.

Phase 1: Immediate Income
Using low-risk and/or guaranteed account options to fund immediate income.

Phase 2: Future Income
Using mid-term assets matched to mid-term liabilities (typically years 7-15 of retirement) which helps create a bridge between Income in Segment 1 and Long-Term Growth in Segment 3, thus allowing additional time for Segment 3 to grow.

Phase 3: Long-Term Growth
Using more aggressive, growth-focused investments with a typical time horizon of at least 15 years. By withdrawing assets from Segments 1 & 2 during the first 15 years of retirement, Segment 3 investments can be left untouched to satisfy long-term retirement needs.