The Lasting Paycheck™ Strategy
Retirement Changes the Job of Your Portfolio
After decades of saving and investing, retirement changes what your portfolio needs to accomplish. Growth remains important, but your investments may now need to generate meaningful income, provide liquidity, manage market risk, address taxes, preserve purchasing power, and continue growing for a retirement that could last decades.
For many retirees, the challenge is not simply determining how much they can withdraw each year. It is deciding where that income should come from, which assets should be used, how the portfolio should respond during difficult markets, and how to continue investing for the years ahead.
The Lasting Paycheck™ Strategy is our approach to managing those decisions together.
Rather than treating your investments as one large pool of money, we organize the portfolio around four distinct roles: Stability, Income, Hedge, and Growth. Each has a different purpose, with investments and strategies selected based on the role they need to play.
The Lasting Paycheck™ Framework
Stability
Protect What You've Built
Provide liquidity and reduce the need to sell longer-term investments at the wrong time.
Income
Generate Your Paycheck
Use multiple sources of portfolio income to help support your retirement lifestyle.
Hedge
Manage Portfolio Risk
Add a dedicated layer of risk management to help address volatility, downside risk, and concentrated positions.
Growth
Invest for the Years Ahead
Pursue long-term appreciation to support future spending and help preserve purchasing power.
More Than a Traditional Bucket Strategy
The four roles establish the framework, but the investment strategy within each is where much of the work takes place.
We are not simply dividing a portfolio into conservative, moderate, and aggressive investments. Each part of the portfolio can contain different investments and strategies selected for the specific job it needs to perform.
Depending on the client, that can include individual stocks and bonds, municipal bond portfolios, ETFs, actively managed strategies, dividend-paying investments, option-income strategies, structured investments, alternatives, direct indexing, defined-outcome strategies, and customized options overlays.
We manage those investments as part of one retirement-income strategy, considering income production, valuations, interest rates, market conditions, volatility, taxes, liquidity needs, and opportunities across the portfolio.
Building Retirement Income
Creating retirement income does not have to depend on one investment, one source of yield, or continually selling assets to raise cash.
The mix can change as interest rates, valuations, volatility, tax considerations, and your income needs change.
Multiple Sources of Portfolio Income
Bond Interest
Dividend Income
Option Premium
Structured Income Solutions
Other Income-Producing Investments
The objective is to create multiple sources of portfolio income while allowing other portions of the portfolio to remain focused on liquidity, risk management, and long-term growth.
Managing the Strategy Over Time
Retirement income planning is not static. Income needs change. Markets change. Interest rates and tax circumstances change. The portfolio needs the flexibility to change with them.
As conditions evolve, we can adjust the investments and strategies within each part of the portfolio and reposition assets among Stability, Income, Hedge, and Growth. During stronger markets, Growth may provide opportunities to replenish Stability or Income. During periods of volatility, Stability can provide liquidity while Hedge strategies may help manage portfolio risk.
The Lasting Paycheck™ is not a one-size-fits-all portfolio. How the strategy is built will depend on your income needs, other retirement-income sources, tax situation, liquidity needs, time horizon, risk tolerance, account structure, and the investments you already own.
For larger and more complex portfolios, it can also be customized around concentrated stock positions, significant embedded gains, individual securities, trust and entity accounts, and account-specific risk-management strategies.
Part of The Prestige Plan™
The Lasting Paycheck™ Strategy is the retirement-income and investment framework within The Prestige Plan™.
Portfolio decisions are considered alongside tax strategy, estate and legacy planning, insurance and risk management, liquidity needs, charitable goals, business interests, and the other financial decisions affecting your family.
The purpose is to build and manage a retirement portfolio around the income you need today while continuing to plan and invest for the years ahead.