Financial Stages

A Financial Strategy for each Financial Phase

Most McKinley clients travel through three financial phases, the Wealth Accumulation, the Retirement Income, and the Legacy phase. Although they are interrelated, each phase calls for a specific and distinct Financial Strategy.

Unfortunately, sometimes life does not always go according to plan and we find ourselves in a Transition Phase, which can occur either from a divorce or because of the loss of a loved one. There are strategies and ways that we can help make these difficult times more bearable.

Client Centered

The Wealth Accumulation Strategy primarily focuses on longer term investments. When assets are invested for the long term, that time horizon itself can potentially mitigate some of the risk that would otherwise accompany higher yielding investments. At the same time, the Wealth Accumulation Strategy calls for intelligent diversification of public-market financial assets, plus diversification into alternative financial assets that have low or negative correlation with the public markets.

The Retirement Income Strategy is seeks to allow clients to maintain their lifestyle, keep up with inflation, and never outlive their money – considering market volatility, inflation, and taxes. The Retirement Income Strategy matches each year’s retirement income needs with a specific time-sensitive investment. In this manner, every retirement asset has a specific purpose of its investment.

The Legacy Strategy is an element for most but not all clients. The Legacy Strategy seeks to be tax-efficient and flexible. Broadly speaking, the Legacy Strategy seeks to ensure for the client that it is their children, grandchildren, other family members or community who derive immediate and lasting use of the client’s financial assets.

Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

All investing involves risk including loss of principal. No strategy assures success or protects against a loss.

Unexpected Transitions

Life during any unexpected transition can be extremely painful whether you are coping with life after losing a partner or starting a new life after a divorce. It’s never too early-or too late—to start taking control of your financial situation. There are many tasks that you will need to perform in order to get your finances in order. Remember to take your time and seek the help of professionals to help guide you. McKinley Financial has created a checklist to help you get started. (Please note this is only a preliminary guide and is not intended to be a comprehensive list of things you need to consider.)

Our advisors have been certified to help during these times and can work with you to make decisions on confusing topics things such as health care directives, power of attorney’s, understanding social security and long-term care. Another important tool that we’ve created to help our clients is the Beneficiary Designation Review Checklist. Updating your beneficiaries on your retirement plans, annuities and life insurance policies is extremely important as beneficiary designations generally kick in immediately after a death and can override a will.

Checklist for the Recently Divorced

Checklist for the Recently Widowed

Beneficiary Checklist

McKinley Financial and LPL Financial do not provide legal advice or services. Please consult your legal advisor regarding your specific situation.