Compass Strategy


Even Smart People Get Off Track Getting from Here to There

Don't get lost in the maze of Retirement FundingOver the past generation, a seismic shift has occurred in how retirements are funded in this country--away from employers and the government and onto the shoulders of individuals. A majority of American households became stock market investors-for the first time-directly or through their retirement savings plans (401k, IRAs, etc.).

A recent retirement income study gives evidence that many soon gave up or made very ill-advised choices because of the baffling maze of necessary decisions.

The Fidelity Paycheck Replacement Study
The Fidelity Research Institute Retirement Index is an industry-leading analytical measure that tracks the progress Americans are making in preparing for retirement.

A key finding in the 2007 Index:
Overall, Americans are on track, from all sources, to replace 58 percent of pre-retirement income, once retired, compared to 57 percent reported in the spring of 2006.

The Implication of the study: The typical American Household is likely to face a 42 percent pay cut in retirement. 42 %!!! And that's the average-one half will do worse.

Just imagine the lifestyle adjustment you, or your employee if you're a plan sponsor, would have to make with a 42% income reduction.

The REALLY Smart Find a Way Through the Maze to Get to Their Number
Right choices and educated turns are critical to navigating the retirement income maze. The REALLY Smart:

  • Develop realistic paycheck replacement plans,
  • Cushion their retirement portfolios against the certainty of financial shocks,
  • Have a portfolio withdrawal strategy that recognizes it's harder to manage money during retirement than before,
  • Hire the right advisor type as navigator and review and update plans as circumstances change.

The Madden Team & The Compass Will Get You There
Confidence that you'll reach Your Number comes from having a specialist with a compass to guide you thru the maze. The Retirement Income Compass has distinctive competencies in the four necessary disciplines:

  • Planning
  • Investing
  • Paycheck Replacement
  • Navigating