Lifestyle Protection Analysis ™

Warning: The retirement analysis offered by many financial planners is greatly flawed.

The most common financial planning models use average rates of return or Monte Carlo analysis that may look sophisticated and complete, but are full of flaws. This is serious because relying on such analyses can provide investors with a false sense of security and lead individuals down the path of imprudent portfolio allocations, unsustainable spending levels and many other problems. The flaws in these tools did not necessarily reveal themselves during the multi-asset, mega-bull market from 1982 to 2007. But clearly since then, choppy conditions have revealed the problem more and more...and we are here to help.

We have a robust retirement analysis we call the Lifestyle Protection Analysis™. This analysis essentially back-tests and stress-tests a client's ability to retire using 110 years of market data. In other words, can test your ability to maintain your standard of living through:

1) The lucky periods (top 10% in market conditions) - see green line below;

2) The median periods (mid point between lucky and worst) - see blue line below; and

3) The unlucky periods (bottom 10% such as great depression and great recession) - see the red line below.

The sample Lifestyle Protection Analysis™ below shows both an analysis that gets our PASS grade (top example) and an analysis that gets our FAIL grade (bottom example). We can work with you to identify portfolio, balance sheet and cash flow changes that will enable you to have a plan that passes this back-test and stress-test with flying colors. Clients on our Complete Wealth Solution service package get this analysis when they start up as clients and periodically (typically every two years) thereafter.