There are 2 techniques used in the Rapid Retire planning process. The Flooring technique and the bucket concept. They are used in way that accelerates a person’s normal speed to retirement. Once you are able to meet your basic necessities of life for THE REST OF YOUR LIFE you enter into Phase 1 which allows you to retire and do something else for income that should be less demanding of your time and energy.
While working to achieve Phase 1 status, assets are investing according to the bucket concept using models and allocations that are 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 either reduce your contributions, roll it over using an in service distribution, or allow us to manage it according to the Rapid Retire planning process by reallocated and updating your holdings accordingly.
During this time, we are also exploring and implementing programs for the flooring technique.
That will include but not limited to:
- Ensuring you have the right type of life insurance or figuring out how to self-insure if you’re life insurance averse.
- Considering whether or not real estate investing is right for the plan.
- Understanding social security and pension options available to you in retirement.
Phase 2 is achieved when you no longer desire to work any job for income. At this point all assets should be aligned according to the flooring technique and bucket concepts.