Client Perspective - Business Owners

First Recommendation Saves Thousands

More alarming was that a full 2.0% move in interest rates could cost us almost a third of our bond portfolio.”
Bob Morse, client since 2009

SITUATION

For the last 15 years, the Morse's financial planner in Portland, Oregon did a fairly good job of recommending and managing a very conservative retirement portfolio. However, as retirement looms, the Morse's are asking more questions: How do you set up a cash stream for retirement? What about taxes? How will all this affect their estate? Is it possible to avoid paying taxes on Social Security? "Our financial planner was a good stock-broker, but not a comprehensive financial planner," said Bob Morse, who holds a Masters in Business Administration (MBA) and has spent over 30 years running his own business and advising such major high-tech companies as Microsoft, Hewlett-Packard, and others. "We barely understood the quarterly report that he reviewed and candidly, felt quite ignorant about most of our investments. We needed to get smarter advice and get smarter about our financial affairs."

BENEFITS

Avoided Bond Loss

"Brock calculated that a move upward of just two tenths of one percent in our large treasuries portfolio (.02%) would immediately cost us twice as much as the tax consequence for locking in gains now. More alarming was that a full 2.0% move in interest rates could cost us almost a third of our bond portfolio. Since the Fed usually moves in quarter points (.25%), the chance of not paying attention and having the rate move could happen in a heart beat," said Bob. 

On the way to tax-free retirement

The Morse's not only have locked in bond gains, they've started on the road to tax-free retirement income—goal: $100,000 per year without touching the principal—using the 7-year asset transfer strategy. "Our main goal was to protect what we had," commented Patti. "We weren't looking for sexy in our retirement, just safety."

Hyper-Inflation Hedge

Because of the volatile economic conditions, the Morse's also chose to hedge looming hyper-inflation possibilities with 5 percent of their portfolio in silver. "This isn't a buy and hold strategy," noted Bob. "We'll sell as the metals market heats up and use it to protect the buying-power of our portfolio."

Guaranteed Return

In addition, Brock is helping the Morse's preserve their savings using tools designed for times of economic commotion that provide a guaranteed base-rate of return with upside market potential.