The financial challenges you’ll face in planning and retirement are many and complicated — an ever changing financial landscape, the unknown longevity of your time in retirement, inflation and rising cost of living, and market uncertainty, to name a few. In fact, the road ahead is so unpredictable, that, even as you enter retirement, you probably feel that you can’t confidently spend your retirement money.
From planning to construction, management, and ongoing communication, we never forget that down markets will happen and preparation is the key to thriving through them. The harvesting strategy helps preserve your financial confidence through inevitable market volatility.
The goal of our harvesting strategy is sustainable wealth management. Making your hard-earned wealth last as long as you do—maybe even longer. We apply a similar planning process to the systematic withdrawal strategies by constructing balanced portfolios of quality investments, diversified across a variety of securities. There are two distinct and important additional steps to our process:
1. Fund the retirement income gap—We let the amount allocated to short term bonds, funds, and money markets be guided by how much of your spending needs are funded by new money sources (your retirement income gap). We build your plan to fill this gap from reserves, without the need to sell stocks to do so.
2. Invest old money to generate new money—We help keep that retirement income gap lower by avoiding investments that don’t pay dividends or interest. We gravitate towards companies who pay substantial dividends, have a history of raising them regularly, and have the fundamentals in place to continue those dividend payments and increases going forward.
The harvesting strategy gets its name by its sell discipline. When the consumption balance gets low, we replenish these reserves with the portfolio investments that have appreciated. We feel that selling into strength on our schedule as your needs dictate is preferable to selling into potential declines as your resolve fades or your needs arise at inopportune times.
We think of it as living off the fruit of the tree, not the branches, trunk, or roots.
Our strategy is designed to help cultivate sustainability and longevity while providing for your needs. This approach is built on one key principle: spend “new money” (pensions, dividends, interest, earned income, etc.) and let “old money” stay invested. The primary goal is to help provide for your needs by harvesting the fruit of your investment portfolio without having to sell quality investments. That key principle informs our asset allocation and investment strategy. We look to position your portfolio in high quality dividend securities that generate a reasonable flow of new money each year. Our secondary goal is to help you find confidence so you won’t have the need or even be inclined to sell your quality long term investments into down markets.
Managing concentrated stock positioning comes with its own unique set of challenges, like managing your risk exposure, finding and timing your optimal exit strategy, understanding and minimizing tax implications, and understanding and following regulations and restrictions. We have a long and time-tested track record of experience in helping corporate executives and other employees manage their concentrated stock position to better mitigate their risk, find better balance for their portfoilio as a whole and pursue the most favorable outcomes for their unique situations. Contact us today to see what Harvest Wealth can do for you.
The financial professionals at Harvest Wealth specialize and have significant experience in helping executives and retired executives integrate their equity awards into a comprehensive wealth plan. Taking into account your particular situation, restrictions, needs and goals, we’ll help you develop a logical exit strategy and help you reap the optimal outcome from your equity awards through our extensive experience in this particular type of financial service, and through our comprehensive Wealth Management Analysis and sustainable wealth harvesting approach.
Our specialized wealth harvesting strategies are crafted and customized to put you and your needs first, for the short, medium and long term. In an effort to keep your money productively working for you, yet provide sufficient liquidity to help meet your needs as they arise, we allocate your assets into two broad strategies:
Assets for Consumption: Lower volatility, short duration funds that are likely to be consumed to help close any retirement income gap and meet your needs which may arise within the next 5-7 yearsAssets for Investment: Traditional long term investments like equities and fixed income designed to help meet your needs which will arise further down the road.
At Harvest Wealth, we take a thoughtful approach to wealth management. First, we identify and help you prioritize your goals — only then can we truly customize a strategy to help meet your needs. Then, we itemize your resources, including your income streams and asset pools. Next, we prepare a comprehensive Wealth Management Analysis, wherein we combine what we know — your goals, resources, timelines — with what we can project, such as taxes, inflation and estimated costs of your goals and dreams. Overall, our goal is to help you develop a sustainable financial wellspring that will help meet your immediate needs while increasing your longevity so you can build the life and legacy you want. We do this through our time-tested strategy of harvesting your wealth to create income streams which are designed to be sustainable, sufficient, rising, secure, and tax advantaged.
For affluent families, corporate executives and retired executives, we provide a robust range of financial services to help meet your changing and complex financial planning needs. See how Harvest Wealth can help.
The Harvest Wealth team is comprised of highly educated, intelligent financial professionals whose likeminded passions are centered on providing excellent service to our clients and on the soundness of our harvesting strategies.
Sustainable wealth management is within reach — at your fingertips, in fact. Click below to start your wealth harvesting journey today, so you can build the life you want for today, tomorrow, and further down the road.