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72 Queen Street Southington, CT 06489

TEL.800-530-9896

FAX.860-329-0304

Distribution Planning

Edu4Retirement, Inc. collaborates with you on your retirement plan distribution. We will help you decide which products or services best meet your needs by determining your goals and timing.

Pre-Retirement Distributions:

Pre-retirement distribution is very different from retirement decisions. First, it begins with timing and working towards your ultimate accumulation targets.  Rollover decisions can have investment strategies such as, growth, balanced or conservative options, and many options in between. 

We offer a full range of options for investment purposes which include mutual funds, exchange traded funds, stocks, bonds, annuities, and insurance.

Retirement Distribution Planning:

Most computations run calculations targeting your retirement needs at 80% of your final average earnings and then show, based upon some assumptions of an asset allocation, normally 60% equities and 40% bonds; a projection showing that you would only run out of money a small percentage of times using the Monte Carlo theory.

These projections are interesting to look at, however, they are a disaster for those individuals that fail. Failure should not be planned, even 10% of the time.

We have adopted the approach of the Retirement Income Industry Association that uses your expenses, your sources of revenue and your retirement assets to formulate the distribution stream. In general, at 65, if you need to draw less than 3½% of your assets to meet your required and desired expenses, with reasonable asset allocation, you should not outlive your money. If you need to draw off more than 7% of your assets, then there is a good chance that you will run out of money.

Our investment strategy is based upon your risk capacity, not your risk tolerance. If you need to draw more of your assets, closer to the 7%, then our recommendations will be more conservative since your risk capacity is low. If you are drawing only 3½% or less, then you have more capacity for risk. This does not mean that you must take the additional risk, just that you have more options.