Segregating assets. . . assuring income when you need it
To manage your assets and retirement distributions, Vector offers you PensionTRAC™, a wholly-owned pension management application. It helps us develop an investment policy based solely on your financial goals.
First we segregate assets into four portfolios; Assured Income, Principal Preservation, Growth and Legacy. This portfolio segmentation process is based on the fact that the core principles of investing and market cycles don't change just because you are a certain age.
Portfolio 1: Assured Income
This portfolio provides income for the first one to four years of retirement, making certain that none of these assets are subject to market risk.
Portfolio 2: Principal Preservation
This portfolio has a time frame of four to six years. Due to the relatively short time frame, this portfolio relies on a preservation strategy with a growth component to address anticipated inflation.
Portfolio 3: Growth
This is the first portfolio with more of a growth component due to the fact that we have approximately three market cycles or 10 years for these assets to grow.
Portfolio 4: Legacy
This is the long-term growth portfolio, with the greatest flexibility to orient toward growth depending most specifically on your risk tolerance and objectives.
Your portfolios are adjusted over time
Your portfolios are adjusted over time
As you consume some of your portfolio for income, dollars are shifted from the three growth portfolios to replenish your short-term needs. Each portfolio is adjusted to achieve the growth or stability required over the assigned time-frame. We call this process Time Segmentation.
Time segmentation means that your assets are assigned specific tasks and time-frames that are tied to their intended usage. This personal approach is specific and unique to each client.
With time segmentation, we design lower risk portfolios that match your cash flow needs. This process "de-links" the income component from the growth component of your portfolio, a process that is targeted and efficient.
Liberating you from having to time market cycles
What we absolutely know about the investment market is that it cycles. A cycle is defined as one market top to another. No one knows exactly when a cycle will start or end, although experience tells us that typically market cycles tend to be 3.5 to 4.5 years in length.
Vector Wealth Management, through PensionTRAC™, develops an assured income strategy, defined by your needs, that helps liberate your income sources from the volatility of market cycles.
This approach allows us to decide when to adjust portfolios independent of current market conditions.
Knowing with clarity what your assets can provide
With all of the complexity surrounding the accumulation and management of financial assets, it is often difficult to know if you are saving too little or, perhaps, too much. Financial liberation occurs when you obtain the clarity of knowing what your hard-earned savings can really do for you.
We feel that our greatest success is when clients see that they'll have enough money to enjoy retirement. They move from a feeling of fear that their money owns them, to a confidence that they own their money.