Aug 14, 2012 --- Determining cash flow and examining fixed
expenses are crucial in achieving retirement readiness, according to financial
advisory firm’s “90/70/30” Rule.” ---
Strategies for retirement planning can vary as greatly as
the climates where financial advisers practice. The focus might be on
accumulating a specific dollar amount, asset allocation or a complex portfolio of diversified investments.Mission
Wealth Management LLC, an advisory firm in Santa Barbara, California, aims to
make planning for retirement easy with its “90/70/30 rule.” The goal, Mission
says, is to help people realize how close they are to retirement.
“Our 90/70/30 rule makes cash flow, asset allocation,
portfolio distribution levels, inflation and growth concepts much easier to understand,”
said Brad Stark, principal and co-founder of Mission Wealth. “You can cut
through the emotional roadblocks and focus on the most important items: What
are your expenses, how much have you saved, and what does the investment world
offer” to help you meet your goals.
“At the end of the day, people want to know, ‘Can we take
that family vacation? Can I help my mom if her Alzheimer’s gets worse? Can I
live my life?’
” said Seth Streeter, president and co-founder of Mission Wealth.
Streeter and Stark devised the formula about 10 years ago. “The
whole investment world is product-driven,” Stark said. “They’ve trained
consumers to build portfolios and improperly buy investments based on past
performance, only to find that the same returns won’t be duplicated. Picking
investments in a rearview mirror doesn’t make you secure in retirement.”