Finance

Preparing for Retirement “5 years at a time”

Preparing for retirement is not a passive activity, especially not for Steve Morton, founder of Morton Wealth Management, LLC. Morton, who started his career as a CPA, has spent 35 years dedicating his practice to creating solutions for those either in, or approaching retirement – and not just from a financial perspective alone.

In order to better understand “what needs to be replaced to have a satisfying retirement,” Morton interviewed psychologists, life coaches and marriage counselors to develop an appreciation of all the different things besides a paycheck that people get from working, and he integrates these insights into his practice.

Morton believes everyone should approach retirement with a proactive attitude and he has written a book on common mistakes that retirees make. “Continue to set goals and live life with intention,” he said. “Spend money in the areas you should and have a proper consumption rate.”

According to Morton, the concept of retirement originated as a jobs creation tactic under FDR, but “today’s retirement looks a whole lot different than what has been portrayed. As a society, we spend a ton of energy getting people educated and up to speed, and very little effort has gone into how to have a successful retirement. It’s difficult.”

That’s where Morton tries to help, by not only structuring plans for optimal after-tax capital retention and growth, but also with a commitment to communication and education for both his firm and his clients. In addition to annual or semi-annual client meetings, the firm also hosts client events with guest speakers on subjects such as travel planning and grief management, and how those topics relate to a client’s financial security.

Morton’s greatest success has been in developing his “Five Year” strategy – one that helped his clients stave off devastating losses during the recession. By evaluating a client’s cash needs for the next five years, he is able to keep those funds out of volatile investments. “Beyond five years is where we can put assets and investments in a growth posture. The five years’ worth on the sidelines allows you to be patient with the growth portfolio.”

By adding a holding period to growth assets, Morton is able to reduce risk while taking advantage of market highs. “Year by year, you never know what the market is going to do, but over a five-year period, there will be some point when stocks are pretty cooperative.”

His system is designed for longevity, too. “You’ve got to help the client to get the right withdrawal rate on their assets and the right structure in their portfolios,” Morton explained. “If you get the withdrawal rate right, it doesn’t matter if they live 20 years or 200 years. It’s a sustainable system in the future.”

For more information, visit: www.mortonwm.com


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