Set the pace for an earlier finish.
Rapid Retire® is a program designed to potentially put you in position to retire 7–10 years sooner than you probably think you could. It is built on three disciplines that work together like a crew in sync.
Two techniques. One accelerated course.
The flooring technique and the bucket concept are used together to accelerate a person’s normal speed to retirement.
Once you can meet your basic necessities of life for the rest of your life, you enter Phase 1, which allows you to retire and do something else for income that is less demanding of your time and energy.
While working toward Phase 1, assets are invested according to the bucket concept, using models and allocations designed to achieve a specific level of portfolio volatility.
If you are still employed and your largest investment is a 401(k)-style retirement plan, your options will vary. You could reduce your contributions, roll it over using an in-service distribution, or let us manage it within the Rapid Retire planning process by reallocating and updating your holdings.
During this time, we also explore and implement programs for the flooring technique, including but not limited to:
- Ensuring you have the right type of life insurance, or determining how to self-insure if you are life-insurance averse.
- Considering whether real estate investing is right for the plan.
- Understanding the Social Security and pension options available to you in retirement.
Phase 2 is achieved when you no longer wish to work any job for income. At that point, all assets should be aligned with the flooring technique and bucket concepts.
Outcomes
The flooring technique
- Food
- Housing
- Medical
- Transportation
- Life insurance
- Annuities
- Pension
- 401(k) / 403(b) / traditional IRA
- Income-producing real estate
- Social Security
Pace each stretch of the race.
Bucket planning determines how to position your investments in the way that best aligns with your financial plan. In Rapid Retire, we determine how much of your assets are needed 5+, 10+ and 15+ years after retirement.
Short term
The nearest stretch: the lowest-risk holdings, positioned to be drawn on first.
Intermediate
The middle distance: somewhat higher risk, refilling the short-term bucket over time.
Long term
The far water: the highest-risk, highest-potential holdings, given the most time to work.
Many seniors live on a fixed income because they follow the old adage that being older means being more conservative. Along with spending too much, investing too conservatively is a major reason many retirees run short of money in their lifetime.
Add life-changing events such as long-term care and the result could be disastrous. Bucket planning helps us mitigate the risk of living too long and exhausting your assets.
Rapid Retire® answers these problems.
- Low savingsMany households save very little of what they earn.
- Forced retirementMany retirees are pushed into retirement for reasons they can’t control.
- No savings at allA large share of people have no retirement savings.
- Unmanaged riskMany people are unaware of the appropriate level of risk to take and have no risk mitigation system in place.
- College costsFamilies pay more for education than they should without a solid admissions and funding game plan, and many have only one year of tuition saved, at best.
Cash flow management.
Summed up in two words: inflows and outflows.
The inability to track finances, in my 25+ years of experience, is a major reason many people start financial plans but can’t stick with them. Personal finance isn’t taught to most young adults, and simply balancing a checkbook is a lost art. Most people have no idea what they make on an hourly, daily, monthly or yearly basis.
The Rapid Retire planning process is cash-flow driven. Without knowing the numbers down to the nearest cent, setting the goal of retiring 7–10 years sooner than you normally would is impossible. Our transaction-tracking process includes:
- Coupling budgeting with financial tracking systems
- Integrating life insurance, annuities, bank accounts, debt instruments and investment accounts for maximum efficiency
- Tracking financial transactions in real time, through financial planning software and online banking tools
Cash reserves, built on the 4-A system.
Adequate
A good rule of thumb is 90–180 days of expenses. Many people don’t have that saved, and some treat credit cards, home equity or a 401(k) as their primary reserve.
Accessible
Available without penalty: within 24 hours from a bank account, 48–96 hours from an investment account, and one week from a life insurance policy.
After tax
Held on an after-tax basis. An unpaid 401(k) loan is taxed as ordinary income, plus a 10% penalty if you’re under 59½, so it isn’t a true reserve.
Always there
Not invested in highly volatile assets or tied to credit. Card limits and home equity lines can be cut in a financial crisis.
Income generation, the fiduciary way.
There are many ways to create income. The first place to start is the fiduciary approach: assets are placed from low risk to high risk, building from the foundation up.
Many people are under-insured, under-saved and over-invested in places that, given their goals, they have no business being.
Think of it as a regatta. The eight at the base is the steadiest boat on the water and carries everything above it; the single scull at the top is the fastest and the easiest to tip.
Options, oil & gas, collectibles, commodities, precious metals
Common stock, stock mutual funds, personal business, variable life/annuity
Muni bonds, Treasuries, corporate bonds, mutual funds, income annuities, income-producing real estate
Checking and savings, CDs, home equity lines of credit, dividend-paying life insurance
Health, property & casualty, disability, long-term care and liability insurance
See what decisions could change your course.
Book a complimentary consultation to see how the Rapid Retire® program could work for you.
No guarantee can be made that you will be in a position to retire 7–10 years sooner or within any specific period. Results of the program will vary by user.
Past performance is no guarantee of future results.All investments, including real estate, are speculative in nature and involve substantial risk of loss. We encourage investors to invest carefully, to get personal advice from a professional investment adviser, and to make independent investigations before acting on information that we publish. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations. All investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators or signals will result in profits or that they will not result in losses. For more information call BrightTree Wealth Management at 808-521-4401.