INITIAL AND ONGOING HOLISTIC RETIREMENT INCOME PLAN
At Retirement Income Center, we specialize in retirement income planning. Traditional retirement planning as practiced by most financial planners focuses on the accumulation and “spending down” of assets. This often proves to be inadequate for meeting one’s financial needs throughout retirement. Using our tax-sensitive retirement income planning strategies, we plan for and provide our clients with a predictable optimized income stream designed to match their projected financial needs for the duration of retirement.
8-STEP RETIREMENT INCOME PLANNING PROCESS
Step 1 – Discovery Interview
Get to know you and your priorities.
Step 2 – Build and Customize Your Asset Map
Enables us, with your input, to quickly construct, update, and visualize your complete financial picture on one page.
Step 3 – Establish, Prioritize, and Periodically Update Your Retirement Income, Education, and Other Financial Planning Goals
Customized and time-sensitive for you and your family.
Step 4 – Gather, Discuss, and Analyze Detailed Information and Documents Pertaining to Your Current and Projected Financial Situation
Including nonretirement, retirement, and real estate assets, liabilities, income, expenses, income tax, insurance, and estate.
Step 5 – Establish and Maintain Real-Time Connections with Your Financial Institutions in Secure Online Retirement Income System
Establish and automatically update daily account values of banks, investment custodians, mortgage companies, and life insurance companies. This eliminates the need for us to periodically request statements from you after the initial planning has been completed.
Step 6 – Identify Strategies to Optimize Your Projected After-Tax Retirement Income and Achieve Your Other Financial Goals
Our tax-sensitive strategies our designed to help you make more-informed decisions about your financial future. They generally include a sustainable income floor to reduce the likelihood that you will outlive your assets.
Step 7 – Present and Discuss Initial and Ongoing Recommendations in Quarterly In-Person, Zoom, or Telephone Meetings
Our recommendations are objective, independent, and always in your best interest. With your permission, we consult with, and include your other financial and legal professionals in meetings.
Step 8 – Implement Agreed-Upon Planning Recommendations
Implement agreed-upon planning recommendations using an agreed-upon timetable.
RETIREMENT INCOME PLANNING SERVICES
Income Tax Planning
Robert Klein leverages his long-time experience as a practicing CPA with a Master of Taxation (MST) and his association with Ed Slott’s Elite IRA Advisor Group to provide timely income tax planning expertise to his clients who are mostly high net worth individuals.
Holistic Retirement Income Planning
Plan for tax-advantaged predictable optimized income streams designed to match financial needs for the duration of retirement. This includes cash flow planning and design of investment and income management strategies for achieving retirement and other financial goals.
Risk Management and Protection Planning
Analysis of current plan and recommendation of strategies to protect your loved ones from the physical, emotional, and financial consequences of life-changing events including disability, extended care, death, and property and casualty losses.
Employee and Executive Benefit Planning and Management
We analyze, coordinate, and manage your employee and executive benefit plans as part of our retirement income planning services. This includes assistance with choice of benefits, Traditional vs. Roth 401(k) contribution decisions, and semi-annual rebalancing of 401(k) plans.
Social Security Planning
We analyze and make recommendations regarding choice of starting age. We team up with Social Security experts to implement customized strategies to optimize your lifetime Social Security benefits.
Retirement Income Center begins planning for minimizing Medicare Part B and D premiums long before you retire. We work with Medicare experts to help you choose the best plans for you.
Housing Wealth Strategy Planning
Retirement Income Center recognizes the importance of using housing wealth strategies to protect and secure your retirement.
Estate, Legacy, and End-of-Life Planning
We work with your estate planning attorney to design and implement strategies for achieving your estate, philanthropic, and legacy goals. We periodically review retirement plan, life insurance, and annuity beneficiary designations and make recommendations for changes that are consistent with your estate plan.
INVESTMENT ADVISORY AND INCOME MANAGEMENT SERVICES
Unlike traditional investment management firms that only provide investment advisory services, Retirement Income Center also offers income management services to help close the gap between your projected retirement income needs and sources, reducing worry and stress associated with stock market volatility before and throughout retirement. We use your retirement income plan to determine and recommend the blend of services that is most appropriate for you.
INVESTMENT ADVISORY SERVICES
Independent Fiduciary Investment Advice
Investment advisory services are provided by Robert Klein in his capacity as an Investment Advisor Representative (IAR) of Retirement Income Center. Bob is an independent financial advisor who is required to serve the best interests of his clients in a fiduciary capacity.
Our Investment Management Process
We have developed investment models that are designed for pursuing our client’s retirement income and other financial planning goals. We manage various types of accounts, including individual, living trust, traditional and Roth IRA, charitable remainder trust, and donor advised fund.
Exchange traded funds, or ETFs, are the predominant security used, however, mutual funds are also included in portfolio models. Fixed index annuities are sometimes substituted for a portion of clients’ fixed income portfolio allocation for larger investment accounts to provide protection from bond and equity market declines.
Semi-Annual Portfolio Rebalancing
All portfolios are rebalanced semi-annually after obtaining your written approval. The purpose of rebalancing is to adjust the value of investment categories to their targeted percentages to reduce portfolio risk and to replace individual holdings that are not performing well relative to their peers.
Affiliation with TD Ameritrade Institutional
Retirement Income Center has chosen TD Ameritrade Institutional as its investment custodian.
TD Ameritrade’s award-winning and industry-leading technology enables us to service our clients efficiently and effectively.
INCOME MANAGEMENT SERVICES
Predictable Optimized Income Stream
Retirement Income Center has designed conservative tax-sensitive retirement income planning strategies that we use to fulfill our mission of providing clients with a predictable optimized income stream to dovetail with projected financial needs for the duration of retirement.
Customized Blend of Fixed Income Annuities to Close Projected Income Gaps
A customized blend of fixed income annuities with highly rated life insurance companies providing sustainable term and/or lifetime income that closes projected income gaps at various stages of retirement is the most efficient and conservative use of our clients’ retirement assets.
We have found that deferred income annuities, fixed index annuities with income riders, and single premium immediate annuities are the most suitable income management products for achieving our clients’ retirement income planning goals.
Affiliation with Crump Life Insurance Services
Income management services are provided through Crump Life Insurance Services, Robert Klein’s insurance agency.
INCOME PROTECTION SERVICES
An unexpected uninsured or underinsured event such as disability, extended care, or death can significantly reduce the longevity of your assets and disrupt the flow of income for you and your family, not to mention the physical and emotional consequences experienced. Without proper planning, you may find that funds earmarked for retirement or other financial goals suddenly need to be diverted to handle the significant challenges brought on by such an event. Retirement Income Center has the experience and expertise to assist you with planning for your income protection needs.
EMPLOYMENT INCOME PROTECTION
Disability insurance is designed to replace 45 to 60 percent of your gross employment income on a tax-free basis. Your disability insurance benefits will be taxable if your employer pays your disability insurance premiums and they are not included in your gross income.
Four Questions to Ask Yourself
- How long can you afford to live without your paycheck, or draw, if you are self-employed?
- How would you and your family be affected financially and emotionally by your unemployment?
- For how many days, weeks, or months could you support your current lifestyle before depleting the assets you have accumulated?
- Do you have a plan to replace your income if you become disabled and aren’t able to work for an extended period?
EXTENDED CARE PROTECTION
When a loved one requires extended care, it can have a profound effect on your family and your retirement income in the absence of an extended care plan. There are two sets of consequences to your family of not having a well-defined plan:
- Emotional and physical well-being of caregivers
Emotional and Physical Well-Being of Caregivers
Studies have shown that providing care for an individual who is chronically ill can have a devastating effect, both emotionally and physically, on caregivers. When a loved one requires care, a wide circle of primary and secondary caregivers, other family, friends, and community members often provide the care and are adversely impacted by the responsibilities.
If care is paid from retirement assets, it will require a reallocation of income intended for retirement. Financial consequences include unnecessary or prepayment of, income taxes, potential depletion of assets, and undermining of the financial viability of a spouse or children.
Robert Klein has specialized expertise in extended Care planning. Bob has held the Certification for Long-Term Care (CLTC®) designation since 2006. He has implemented numerous extended care plans for Retirement Income Center’s clients.
Life insurance helps protect your retirement income plan against premature death. Insufficient life insurance can severely reduce investment assets otherwise intended to be used for retirement.
Experience and Expertise to Protect Your Plan
At Retirement Income Center, we have the experience and expertise to help you determine your need for life insurance, the amount required for your financial situation, the right type of policies, and the most appropriate form of policy ownership and beneficiary designations. As part of our service, we evaluate your existing individual and group policies to determine how potential benefits would affect your financial situation, including your ability to achieve your retirement and other financial goals.
In addition to all of the various Holistic Retirement Income Planning, Investment Advisory and Income Management, and Income Protection services that are included as part of your comprehensive fee-based fiduciary retirement income plan, we are happy to provide you with the following value-added services:
24/7 secure online website with real-time net worth statement, cash flow, investment, and other retirement income planning reports.
The system includes a secure vault for storing and accessing all your important financial documents, including income tax returns, investment statements and reports, insurance policies, passports, property deeds, and estate planning documents. We do all the heavy lifting for you, uploading all documents to your vault as they become available.
Everplans End-of-Life Planning System
We offer a comprehensive end-of-life secure online planning system that includes a vault. Assistance with initial set-up is included.
Potential Reduced Investment Management Fees for Family Members
We take into consideration existing relationships with your other family members who also use our investment advisory services when calculating your investment management fees.
20% Discount on Income Tax Preparation Services Performed by Robert Klein, CPA
Income tax preparation is available as an additional service provided by Robert Klein, CPA upon request at a discount of 20% from the firm’s standard rates.
FEES FOR SERVICES AND OTHER COMENSATION
- Initial Retirement Income Planning Fee
Retirement Income Center charges an initial planning fee to prepare and review a holistic retirement income plan. The initial plan includes the eight steps in the Retirement Income Planning Process and addresses the various Retirement Income Planning Services that are applicable to each client’s situation.
The amount of the initial retirement income planning fee is based on the complexity of each client’s financial situation and requested services to be performed. Our minimum fee is $6,000 payable 50% upon signing of an engagement letter and 50% upon completion of the initial plan.
- Portfolio Management Service Fees
In addition to portfolio management, Retirement Income Center’s portfolio management service fees include ongoing income tax planning, holistic retirement income planning, risk management and protection planning, and other services listed and described in the Retirement Income Planning Services section as applicable to each client’s situation. Other services provided may change from quarter to quarter based on specific needs.
The annual fee for portfolio management services is charged as a percentage of assets under management, according to the following schedule:
|Assets Under Management||Annual Fee|
|$0 to $500,000||1.45%|
|$500,001 to $1,500,000||1.20%|
|$1,500,001 to $2,500,000||0.95%|
|$2,500,001 to $5,000,000||0.70%|
|$5,000,001 to $7,500,000||0.60%|
|$7,500,001 to $10,000,000||0.50%|
Our fees are billed quarterly, in advance, at the beginning of each calendar quarter based upon the value (market value or fair market value in the absence of market value), of the client’s household assets at the end of the previous quarter. Fees are debited from investment accounts in accordance with client authorization in the Client Services Agreement.
A minimum of $1,500,000 of assets under management is generally required for this service. The account size may be negotiable under certain circumstances. Retirement Income Center groups certain related client accounts for the purpose of achieving the minimum account size and determining the annualized fee.
Retirement Income Center’s advisory fee schedule is not negotiable.
Sales of fixed annuities and other insurance products by Robert Klein and other employees of Retirement Income Center are offered as an additional service that may be recommended as part of an initial or ongoing retirement income plan. Clients are under no obligation to purchase insurance products from Robert Klein, other employees of Retirement Income Center, or any insurance company.
Robert Klein receives a commission for the sale of fixed annuities and other insurance products from Crump Life Insurance Services, Bob’s life insurance agency. Other insurance products that Bob is licensed to sell include disability, extended or long-term care, and life insurance. All commissions payable by Crump Life Insurance Services to Robert Klein are disclosed in writing to clients prior to the sale of any products.
Neither Retirement Income Center nor any of its employees receive any fees, commissions, or other forms of compensation from affiliates for the referral of any clients to products or services. In addition, neither Retirement Income Center nor any of its employees receive discounts or any other form of compensation from any affiliates for inclusion on Retirement Income Center’s website.