|
|
|
Home >
Finance > Grant Hicks |
| |
|
Retirement Planning with Grant Hicks
|
 Grant
Hicks, C.I.M., FCSI is a professional speaker, co-author and
a Retirement Planning Specialist A leader in
the financial industry, Grant has been helping Vancouver
Island residents plan and create their retirement lifestyles
since 1989. |
| |
Manage Your Retirement Income With The Cash Wedge
A fellow Winnipegger, Daryl Diamond
created a retirement income strategy called “the
Cash Wedge” (copyright Rarestone Financial Series
inc.). Daryl is a Winnipeg-based author, educator
and advisor on the subject of using assets to
realize the greatest amount of security.
If you want to withdraw income from
your portfolio, how much do you take out and what
will be the rate of return on your overall
portfolio. With volatility and markets up and down
each year, how can you predict how it will do and
how much you can take out ?
The cash wedge is for conservative
retirees who are wondering, where do I take my
income from, stocks, bonds, GIC”s mutual funds or
all of them? When we experience large fluctuations
on our statements, especially to the downside,
taking income may leave you wondering how long it
will last and add worry to your retirement plan.
Consider adding a “cash wedge” and
withdraw income from a less volatile and
conservative investment.
For example, if I have $500,000 and
want to withdraw 5% per year of $25,000 I can take
approx $2083 out per month from the total portfolio.
The cash wedge strategy suggests you
invest $25,000 into a short term high interest
investment and withdraw monthly from it. Then you
would invest into GIC’s for one and two years so
three years of income is covered. Each year you
replenish the cash wedge with a maturing GIC and
plan to buy another GIC for 2 years. Then the rest
of your nest egg, $425,000 will not be touched for
at least three years. The remaining portfolio can
have some time to grow.
If the $425,000 grew at 5.75%
compounded, it would grow to $502,609. You can also
plan to have up to 5 years of income and have a
rolling 5 year GIC strategy where every year you
invest in a 5 year GIC and the maturing GIC is used
for monthly income and invested into a short term
liquid investment.
Speak to your financial professional
about designing your own cash wedge for retirement
income today.
.
, email:
web:
|
| |
| Copyright mySeniorSite.ca. All
Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed without permission. |
| |
| |
|
 |
|
|
|
It's easy to stay up to date on the things that interest you. Just
