The management of your FRS DROP distribution and savings accounts, such as TSAs and Deferred Compensation Plans, are important to the overall success of your plans for retirement. FRS Pension Plan members have the financial security of a lifetime income which may include an annual cost of living adjustment (COLA). Matching the timing of retirement income with spending requires effective budgeting. Living expenses that are unexpected and exceed your monthly pension income can be met through savings accounts or the use of loans or credit cards. Significant increases in living expenses due to chronic and custodial health care costs not covered by Medicare, represent a catastrophic risk that may require long term care insurance to avoid the spend down of your retirement assets.
The effective management of your retirement assets requires a clear understanding of FRS member’s financial planning goals and objectives, time horizons, and risk tolerance profile. The development of an Investment strategy to meet your stated financial goals and objectives requires development of an:
Your investment strategy should be developed with funds earmarked for specific goals or needs. Retirement planning goals have a specific risk tolerance and time horizon to control how funds are to be invested, each goal with its own asset allocation model. The importance of the goal and the associated time horizon will help prioritize the funding of your retirement cash flow needs.
Through a process of continuous monitoring, adjustments are made to the asset allocations based on the investment policy statement directives. Asset allocation changes might be required as a result of changes in personal circumstances and market conditions. True North Financial Advisors can provide the direction and advice to keep your retirement investments focused on the path towards your True North.
