A Successful Retirement Income Plan = Growing Distributions For You & Your Heirs

I have often said change is the only certainty in the world of investment management. The future unfolds in ways that cannot be accounted for over a lifetime. Long-term goals for saving funds, however, don’t change that often. You may have short-term goals, like saving for a down payment on a home, funding an education, or building a nest egg. Or you may be entering the later years of life, where preservation of capital, income, and legacy planning are your primary investment goals. It is estimated that 10,000 Americans are entering the retirement years each day. Many have the same goal as the Jeffrey Family. They have stayed the course throughout the last 45 years and are positioned to meet their goals for the next 45. I often wonder what my own family would be like if I had not wandered for several years, dragging the family along with me, before settling here in Rock Hill.

I grew up in a little house in a small farming community in north-central Iowa. The house faced the Main Street of the town, but Main Street was much more than just a little two-lane road. In fact, if I walked off my porch, took a left and kept walking until the road stopped, I would end up in Boston. If instead I turned right and kept walking, I would make it all the way to Newport, Oregon.

What a trip either would be. On the way to Boston, I could cross the Mississippi River, visit Chicago and the Great Lakes. Enjoy the Indiana dunes, the Finger Lakes and the Berkshires, and countless towns and villages along the way. 

If instead, I took the right, I would enjoy crossing the Missouri River and the Great Plains. Visiting Hells Half Acre in Colorado, Yellowstone in Montana, and Craters of the Moon in Idaho before hitting the Cascades and ending just a short distance from the Pacific Ocean. 

My Main Street was also known as US 20, America’s longest highway. From Boston to Newport, Oregon, it stretches 3,365 miles. I am sure the Anderson family would have done just fine settling in any one of the thousands of communities along that Main Street. But one major drawback caused us to veer in another direction. Every thousand miles or so of Main Street would have led us to chilly if not freezing weather, and plenty of snow. For some, that is not only acceptable but desired. Not for me!I ended up going south and east instead to find our home. 

Our story today concerns another family who chose to not veer off and take a side trip, but to stay the course despite any distraction they encountered. This was the Jeffrey family from Columbus, Ohio, whom I have written about before in past letters. The name came up again recently in a brief written by James Garland, CFA. Garland was the successor to the work of Tad Jeffrey. This brief, “A Cash-Flow Focus for Endowments and Trusts,” was published by the CFA Institute Research Foundation (1). 

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Disclosure: Anderson Griggs & Company, Inc., doing business as Anderson Griggs Investments, is a registered investment adviser.  Anderson Griggs only conducts business in states and ...

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