Income Allocation Planning Disclosure and Assumptions
The Income Allocation Planning (IAP) method has been developed by Golden Retirement, LLC, and is implemented in Go2Income programs through its two affiliates: Golden Retirement Advisors, Inc a registered investment advisor, and the 2Income Annuity Group, an insurance agency licensed for life insurance and annuities. See About Us.
A Go2Income program may integrate (1) investments in major savings sources, including Rollover IRAs, after-tax personal savings, equity in a primary residence, and fixed and variable deferred annuities, and (2) income annuities ("IA"). A program may incorporate all your retirement savings or a single savings source.
An Advisor-Counselor will help you refine your plan, implement your plan and help you manage your plan going forward. GRA will provide you with recommendations as to the investment platform, types of investments, and specific portfolios that we have researched. As GRA updates its research each quarter, you will receive summaries of that research. Go2Income together with the 2Income Annuity Group provide support and advice around income annuities whether you’re considering as part of a Go2Income program or as a standalone purchase.
The comparisons in the Go2Income website between the asset allocation and Income Allocation Planning methods are based on age, gender, retirement savings, and percentage of savings in a Rollover IRA. In addition, the comparison is driven by the stock market outlook and investment allocations.
The Asset Allocation method assumes that withdrawals from the Rollover IRA are based on a calculation used to determine Required Minimum Distributions (RMD). For ages under 70 where RMDs are not required, the Asset Allocation withdrawals are based on an extension of life expectancy factors to these younger ages. Because all income under the Asset Allocation method is dependent on withdrawals of savings, we assume - consistent with multiple studies that investors underperform the market - that the individual's stock market returns are 2% under the market. Here's a study on market underperformance showing even worse under performance.
The Income Annuity pricing in the illustrations of the Income Allocation Plan is based on the Go2Income proprietary pricing methodology. There is no assurance that the purchase prices in the commercial marketplace may be as favorable.
Income planning and consulting recommendations may pose a potential conflict between the interests of GRA and the interests of a Client. Clients are not obligated to implement any recommendations made by GRA or maintain an ongoing relationship with GRA. If the Client elects to act on any of the recommendations made by GRA, the Client is under no obligation to implement a Plan through GRA
It should be noted that past performance of the recommended portfolios should not be construed as an indication of future results. Investment portfolios will go up or down, depending on market conditions; and there are no promises, guarantees or warranties that any of the portfolios will generate the performance we have assumed in the preparation of your Plan.
The illustrations and graphs generated by the IAP tool on the Go2Income website are hypothetical in nature, and do not reflect historical results and are not guarantees of future results. You must make your own determination whether IAP is consistent with your retirement objectives, risk tolerance, financial situation and your own evaluation of the IAP results. You should review your decisions periodically to make sure they are still consistent with your goals. An Advisor-Counselor advisor is also available to review your IAP plan and to answer any questions. Click here to request an appointment.