He also makes sure that his customers are short of cash to ensure peace of mind.
“A cash wage would be something that we would set aside in a high-yield savings account with a year or two of customer income payments, so that .8% of the money collected today would be there,” Little said. “So, we are not getting a lot of returns on that. But, what we are doing is really providing peace of mind as people in fear of their portfolio falling in the fear of actually compromising their income. gets transformed.
“By keeping that money aside in those cash wedges, they can really see it on their statements. It brings a very significant level of comfort and peace of mind to them knowing that they know what’s going on for this particular bad time.” Earnings are safe. And, certainly, in 2022, we’re seeing a little bit of that kind of weakness in the market.
Little also uses retirement programs to link the performance of clients’ portfolios over the long term. He said that, if he could get a minimum return of 7% over the long term, he could retrace all glide paths at a rate of 5.3%.
“I know that as long as I can maintain that 7% return, I can still withdraw 5.3%,” he said, “and a client has never had money in my tenure. Looks like the oldest client we had was 102. So, the cornerstone of this whole process is to make sure we have an asset legacy retirement income plan, which clients hire us to do for them.
