At exit 332, the Millers and Jacksons find themselves in a “culinary crisis.”
They have multiple dining options, but they can’t agree on where to eat.
Margie Miller is feeling adventurous—she’d really like a cauliflower taco and a fish taco from a food truck with stellar Google Reviews.
Her best friend Amanda thinks the truck looks sketchy. “I want something healthy,” she says, “Where could I get a fruit smoothie around here?”
Bob, meanwhile is eyeballing a local BBQ dive across the way. And Jim is pointing out, “We could just go through the drive-thru of that burger joint. It’s fast. Cheap. Nothing special. Just a chain. But least you know what you’re getting.”
This little travel snapshot is a great reminder.
We have diverse personalities along with unique concerns and desires. These differences are what makes life frustra—er, “interesting.”
In my last couple of columns, I’ve mentioned the Retirement Income Style Awareness Profile® (i.e., the RISA®).
This ingenious test measures two factors that affect someone’s preferences when it comes to retirement income.
The first has to do with RISK. Are you “probability-based”? In other words, do you want your assets in the market where they’re exposed to potential loss—but also to the historical probability that they will likely grow over time)?
Or are you “safety first”? That is, do you want your assets secured in products that don’t fluctuate with or depend on the market?
The second scale measured by the RISA® is more about FLEXIBILITY. Do you want to commit to a long-term income solution (like an annuity). That kind of solution will tie up some or all of your assets, but it will also give you a steady, predictable amount of income.
Or do you prefer to keep your options open so you can respond to potential personal changes or economic opportunities?
The beauty of the RISA® is that it can measure your unique preferences and map them onto a matrix to show which of four distinct retirement income personas you are most like:
- Someone in the “Total Return” quadrant is someone who is probability based (“If history is any indicator, the market will probably grow over time”) with an optionality orientation. (“I like keeping my options open. I don’t want my money locked into some long-term investment vehicle.”)
- A “Risk Wrap” quadrant individual is one who is probability based, but with a commitment orientation (“I’m willing to commit some portion of my assets to more secure and steady income source.”)
- “Income Protection” describes the more conservative man or woman who is safety-first with a commitment orientation (“I don’t want market exposure—it’s nerve-wracking to see my assets fluctuate. A guaranteed monthly check for life is what I want.”)
- And the “Time Segmentation” quadrant is where you find folks who are safety-first with an optionality orientation. (“I’ll put my money in ‘buckets’—so that it’s as secure as can be, but also available to me at different times.”)
Why do these designations matter so much?
Because if you’re an adventurous food truck person, you’ll never be happy eating at a chain burger joint. And if you like healthy fare, a hole-in-the-wall BBQ joint is going to leave you scowling.
Trust me. An “Income Protection” type person with a “Total Return” type retirement plan…that’s the recipe for a sleepless retirement.
Do you know your Retirement Income style? If not, email me at bmoore@argentadvisors.com. I’ll send you a free link to take the RISA® Profile. It only takes a few minutes, and it can save you a LOT of angst and frustration down the road.
Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.
