A New Approach to Retirement Planning: Lifestyle Driven Investing™

What is Lifestyle Driven Investing™?

Creating your Preferred Lifestyle™ is one thing; keeping it is another.  Your wealth has been earned over a lifetime of hard work and wise choices.  You are looking for reliable advice and honest solutions to create and sustain your desired retirement lifestyle.  Whether you are retired, or retirement is right around the corner, you need a plan that will work in good economic times or bad.  

Lifestyle Driven Investing™ differs from traditional planning by focusing on creating predictable income streams to fund your retirement lifestyle.  Traditional retirement planning has as its core amassing a magic “number” on a net worth or balance sheet, which may or may not have any bearing on one’s ability to fund retirement expenses.  One might have a single asset that, on paper, shows up as a large number on a balance sheet, but on its own has no ability to create spendable income.

Planning for Your Preferred Future™

To create your Preferred Future™, we look forward to a time in the future – call it “retirement” or “financial independence”—and imagine what things will cost at that time.  We begin building your House of Security™ by segregating your expected expenses into four different categories:

  1. Needs are your basic and non-negotiable expenses; things like food, shelter, health insurance and the basic necessities of life
  2. Wants are the extras – the country club memberships, vacations, dining out
  3. Likes are generally big ticket items like a second home, a ranch or an RV
  4. Wishes are your legacy wishes – what portion of your finances you want to leave to your family or to charity

Once we have those expenses laid out, we match the category with specific investments that will generate the cash flow to fund those expenses.  The problem with traditional asset allocation is that all expenses are considered equal.  We believe food and shelter should take a higher priority than country club memberships and vacations.  Hence, we believe the investments one uses to fund a “need” should potentially be different from an investment that funds a “want.”

Contact Botsford Financial Group today for personalized retirement planning services.  Offices in Frisco, TX and Atlanta, GA.


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