9 Lowell Street, Beverly, Massachusetts, 0915-3652 - Phone 978.922.9961 - Fax 978.922-9961
Conflict Free Financial Planning, Investment Counseling & Financial Education
Services


                                                       Distribution Planning Service
      
This service is targeted to people who are close to retirement (10 years or less) or are already retired. Once
people reach retirement they must plan for the distribution of their retirement savings over their lifetime so they
do not outlive their assets. Their standard of living is a function of these income distributions, any pension
distributions and Social Security. The amount of income which can be prudently distributed is a function of the
amount of savings you have accumulated at retirement, the return you can earn on your investments and your
life expectancy. Retirees should plan on increasing these annual distributions by the rate of inflation in order to
maintain their desired standard of living. As individuals approach retirement they should estimate future
expenses in retirement to make sure they are in line with expected income. If anticipated expenses exceed
expected income the investor has a number of options. They can eliminate some of their anticipated expenses
to bring expenses in line with expected income. They can increase the amount of money they save each year in
order to accumulate a larger account balance at retirement or they can delay retirement until they have
accumulated a sum which will support planned expenses. The alternative is to risk running out of money. People
who are already retired and who are taking higher distributions than are prudent must either cut back on
spending, go back to work part time or risk running out of money.

Retirees generally have three objectives when they plan for the distribution of their retirement assets.

1. To generate annual income distributions that increase with inflation while not running out of money.
2. To maintain the inflation adjusted value of their principle.
3. To leave an estate if possible.

While pursuing these objectives retirees must answer four questions. This service is designed to help you
answer them.
                  
1. How much money can I withdraw from my retirement savings in my first year of retirement to sustain inflation
adjusted distributions for the rest of my life?
2. What rate of return do I need to earn on my investments to sustain these distributions?
3. What types of investments should I choose to earn a return that will support my distribution strategy?
4. How should I react if poor investment results cause losses to my retirement portfolio?

If you are still working your advisor will estimate how much retirement savings you will have on your planned
retirement date based on your current rate of savings. For those already retired this figure is known. Your
advisor will estimate your life expectancy and will develop projections as to asset levels and income distributions
for every year in retirement through age 100 based on various rates of inflation and investment returns.

Our portfolio management process is described in the philosophy section of this site. You will be presented with
a long term investment strategy in the form of a written Investment Policy Statement (IPS) which includes an
asset allocation, a sub-asset allocation amongst the various categories of stocks and bonds and specific
investment recommendations.

          Accumulation Planning Service                    Distribution Planning Service                    

                                            General Investment Strategy Service
9 Lowell Street, Beverly, Massachusetts, 01915-3652 - Phone 978.922.9961 - Fax 978.922.9961
Conflict Free Financial Planning, Investment Counseling & Financial Education
Copyright © 2009 Thomas J. Costantini, Monserrat Advisory Services, LLC,  All Rights Reserved.
Adam Smith
David Ricardo