This is What a Real $3.2M Retirement Portfolio Looks Like

Video Description

Have you ever found yourself at a crossroads, wondering how to determine the perfect mix for your retirement portfolio? The questions can be overwhelming. What stocks should I own? What bonds should be in my portfolio? Where should I allocate them? In this video I walk through a real-life example to shed light on the steps taken to guide one couple through this intricate process. Meet Todd and Katie Todd, 66, and Katie, 63, approached us with a $3.2 million portfolio, seeking guidance on allocation. Despite diligent saving and investing, they felt uncertain about their financial security in retirement. Building a Foundation: Goals and Income With a retirement goal of $8,500 per month, including healthcare and travel expenses, Todd and Katie aimed for an additional $20,000 annually. Analyzing income streams, we considered Todd's Social Security and Katie's with a spousal benefit. Understanding Cash Flows and Expenses We broke down living costs, housing, healthcare, and travel expenses. Long-term care costs were factored in to ensure financial support for unforeseen circumstances. Portfolio and Account Allocation Strategy Determining the annual portfolio draw, we planned to source $600,000 from their taxable account for flexibility in tax-related strategies. Our recommendations focused on allocation strategy, ensuring each investment served a specific role. Diversified Portfolio Crafting a well-diversified portfolio for stability, we recommended conservative investments for the initial years. Emphasizing diversification even within their Roth IRA, we aimed to balance growth potential. Addressing Current Investments Shifting from predominantly large U.S. stocks to an 80-20 portfolio (80% growth, 20% stability) aimed to balance growth and risk mitigation. Todd and Katie's journey exemplifies the intricate yet rewarding process of crafting a retirement portfolio. By aligning investments with goals, addressing income streams, and strategically diversifying, we aimed to ensure they could enjoy a secure and fulfilling retirement. ======================= Work with us → https://www.rootfinancial.com/start-here/ Check out our Root Financial Youtube Channel → https://www.youtube.com/channel/UCopKwWs9ea1dAOxqZOqBjpg Get access to the retirement software I use → https://retirement-planning-academy.mykajabi.com/rpa Join Community → https://root-collective-58ba64.circle.so/join?invitation_token=7d3099b487a7dac1d9e97518d6661caff82a14cd-e9ef17fb-3ff3-48ef-ac1e-1d1939c91ae0 _ _ 👥 Make sure to connect with us on all socials below → https://beacons.ai/rootfinancialpartners ⏱Timestamps:⏱ 0:00 - Todd and Katie’s portfolio 2:05 - About them and their goals 4:28 - Income and cash flows 8:55 - Considering tax strategy and markets 14:17 - James’s recommendation 18:25 - Strategically allocated funds 22:08 - Dream big Other videos we think you'll like: About Root: https://www.youtube.com/watch?v=ZPy7Qlmemy8&t=1s Worried about retirement? Start here: https://www.youtube.com/watch?v=c1dCo73XTw4&t=1s -- Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation. The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal. Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements. Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written agreement with Root Financial.