True Link blog

What’s Unique About Our Methodology?

Published by:
Kai Stinchcombe
December 12, 2016

We combine the best of traditional approaches with a unique focus on the needs of retired adults. Here’s a bit more about our methodology…

In developing our investment methodology, we first examined the main offerings for retirees in the marketplace today — target date funds, annuities, robo-advisors, and traditional financial advisors.

On the plus side, here’s what we like about each of these options:

  • Target date funds and similar mutual funds typically offer broad, balanced exposure, meaning that you don’t have too much of your wealth wrapped up in one asset class
  • Annuities can provide guaranteed lifetime income regardless of longevity
  • Robo-advisors offer transparency and objectivity
  • Traditional financial advisors customize plans to meet client needs

However, these offerings also have drawbacks:

  • Mutual funds are a one-size-fits-all investment solution; they lack personalization and fail to address the specific needs and goals of the individual investor
  • Certain types of annuities can be costly, inflexible, and have relatively low returns; borrowing against them may result in significant penalties
  • Robo-advisors are ill-suited to provide budgeting support, to factor in medical inflation and long-term care insurance, or to handle already-invested assets — all things that matter to retirees
  • Personal investment advisors can be influenced by hunches or sales commissions, making it difficult for clients to feel certain that decisions are being made in their best interest

With these pros and cons in mind, we created an approach that combines what we believe to be the best aspects of existing offerings — balanced exposure, lifetime guarantee, objective investing, and human personalization — without the drawbacks.

How do we avoid the pitfalls of existing offerings?

First, we raise the ethical bar by offering a transparent fee structure, eliminating conflicts of interest and commissions, and hiring professionals who share our values of honesty and integrity. Second, we empower our advisors with the right tools and technology to create objective, highly personalized plans. We use a time-based allocation model, Modern Portfolio Theory, staggered-maturity bond ladders, and annuities as the core building blocks of our approach, and employ them when it makes sense for you. Our strategy is data-driven and specifically built to address the needs and goals of retirees.

What does this mean?

By drawing from the best elements of current investment offerings, incorporating new technologies, and prioritizing trust and ethics, True Link Financial Advisors offers retirees a smart solution to manage spending and asset growth in retirement.

You can see our methodology in action by trying out our free online planning tool and scheduling a consultation with one of our advisors.

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