Grow Assets
Helping You Transition to Retirement With Confidence
How it Works
Retirelink is comprised of a series of investment portfolios that are tailored to match your specific needs, goals, and attitude toward risk. These portfolios employ different types of investments for funds you’ll need in the early years of retirement, versus funds you won’t need until later.
This approach seeks to align your investments with your retirement timeline—offering an alternative solution to traditional retirement planning, along with the freedom and security to live your retirement years with confidence.
RETIRELINK SEEKS TO HELP INVESTORS
Protect Against Market Volatility
Overcome Sequence of Returns Risk
Maintain Clarity of the Financial Plan
Confidently Stay Invested Throughout Retirement
What worked for you leading up to retirement may not deliver the results you need while active in retirement.
A traditional approach to investing for retirement is based on investing in a blend of stocks and bonds. For instance, investing 60% of funds in stocks and 40% of funds in bonds is commonly known as the 60/40 portfolio.
Unfortunately, with the traditional 60/40 portfolio, adverse market conditions could significantly impair your long-term ability to fund your retirement.
In other words, if stocks and/or bond markets drop, your traditional 60/40 portfolio will drop. While it might work well during your accumulation phase, it may not be suitable for retirement investing due to several factors:
THE 60/40 APPROACH
Market Volatility
When markets experience volatility and are liable to change rapidly, prices can dramatically fluctuate. This can cause a great deal of uncertainty and risk, making it hard to stay invested, which can significantly impact your portfolio’s value in retirement.
Inflation Risk
Inflation is an especially significant risk for those who rely on fixed-income investments, like bonds. While bonds provide stability, they may not keep up with inflation over the long-term, resulting in a loss of purchasing power. This can be particularly problematic for retirees who rely on investments to provide income for covering living expenses.
Sequence of Returns Risk
If your portfolio experiences negative returns in the early years of retirement, you may be forced to withdraw a larger percentage of your portfolio to cover living expenses. This can lead to a depletion of your portfolio’s value, leaving you with less money for the remainder of your retirement years.
Retirelink helps to remove the guess-work from planning for retirement by focusing on your specific needs and timeline.
Now
Years 2-5
Years 6-10
Years 11+
AN ALTERNATIVE SOLUTION
Retirelink helps to remove the guess-work from planning for retirement by focusing on your specific needs and timeline.
The Retirelink portfolio strategies work side- by-side with your retirement timeline, investing groups of assets differently based on when you’re going to need them.
By dividing your investments into different categories, or “buckets”, Retirelink aims to provide reliable access to funds while managing your risk exposure. The type of investments utilized in the short-term focus on capital preservation, while investments that sustain long-term needs focus on growth.
Client Case Study
Process Step: After selecting the Retirelink strategies for your retirement plan, you will work with your financial advisor to identify your annual funding needs.
Solution: Client ‘Jane Smith’ requires $50K annually for her funding needs. She will be retiring in one year, and she has $1 million of total investable assets.
Process Step: Hold ‘year 1′ funds in Cash.
Solution: Cash: $50,000
Process Step: Invest the next four years of assets in the conservative portfolio (Retirelink 1.)
Solution: Retirelink 1: $200,000
Process Step: Invest subsequent years of cash in proportion to the more growth-oriented portfolios (Retirelink 2 and Retirelink 3.)
Solution:
Retirelink 2: $250,000
Retirelink 3: $500,000
Process Step: Work with your financial advisor to rebalance funds annually and include any year-to-year changes in funding needs.
Solution: During Jane’s annual meeting with her advisor, they will revisit her plan, assess her progress, and adjust her plan based on her most recent funding needs.
THE BENEFITS OF
Retirelink™
BETTER ACCESS TO FUNDING
These strategies allocate funds for near-term income needs in the first bucket, while the second and third buckets are allocated for intermediate and long-term needs, respectively. This structure allows you to better dictate your cash flow and aims to provide reliable access to funds throughout retirement.
INCREASED FLEXIBILITY
As market conditions change, instead of selling stocks or bonds at a loss during a market downturn, you’re able to tap into your cash reserves being held aside to cover immediate expenses while you wait for the market to recover.
BETTER RISK MANAGEMENT
By allocating investments into different buckets with different risk profiles, these strategies help you manage your risk exposure effectively.
REDUCED EMOTIONAL STRESS
By delivering a clear and structured plan for managing investments, Retirelink can help you feel more confident and secure about your retirement income, reducing the pressure to make impulsive investment decisions.
Disclosures: Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client’s investment portfolio. INVESTING INVOLVES THE POTENTIAL FOR GAIN AS WELL AS THE POSSIBILITY OF LOSS. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. The Retirelink models invest in various asset classes, each with a specific allocation. The Retirelink models are managed with a view toward long-term investing, and are primarily compromised of ETFs, but may also include mutual funds, closed-end funds and individual securities. The target asset allocations for the Retirelink models are based on their specific investment objectives. Each Retirelink model also contains a cash allocation, which is considered when calculating each strategy’s total returns. Economic factors, market conditions, and investment strategies will affect the performance of accounts invested in each strategy. This material is provided for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Investors should consult their financial and tax professionals before implementing any strategy. Total fees and expenses, including advisor, platform, brokerage, and custody fees for an account invested in Retirelink model will vary and yield different results. Consult our Form ADV Part 2A (a copy of which is available from Alphastar upon request and from the SEC at http://www.adviserinfo.sec.gov) for additional information about Retirelink model fees and expenses, and ask your advisor how these fees apply to your account. Investment advisory services are offered through Alphastar Capital Management, LLC, an SEC Registered Investment Adviser. Registration does not imply a certain level of skill or ability.