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Financial Services

Our Financial Services

At Durham Loyal we sit down with you as your Personal Financial Consultant to address your specific needs, concerns and desires to help you develop a customized plan that allows you to sleep at night knowing that your life will remain financially secure.

Retirement Planning

Investing in retirement can be tricky, as it requires that you consider several factors of lesser concern to younger investors. Make a mistake and you could find yourself surviving on less income than you planned, paying more in taxes, or leaving a much smaller legacy to your heirs than you thought you would. It seems unusual to consider longevity a risk, but when it comes to living out your retirement with enough money to do what you want, take care of medical costs, and even keep a roof over your head, the longer you live, the more likely you are to have trouble keeping up.

Whether or not you realize it, longevity is the number one challenge facing retirees. Retirees still need to invest a portion of their nest egg for growth, yet cannot afford to take on the same level of risks as a younger person because there is less time to make up for bad decisions that have a negative impact on your retirement portfolio. If low or negative return years occur in the early years of retirement, the damage to your portfolio may significantly impact your future income projections. Therefore, investments in retirement should be deposited into “baskets” such that the baskets subject to market risk will not be used for several years.

Wealth Preservation

Most investors do not realize that your income must double every 20 years just to keep up with the average rate of inflation. Many pensions do not include a cost of living adjustment, thus your personal savings will have to either grow adequately to cover inflation, or be large enough to allow you to draw an ever-increasing amount of income each year. Hedging for inflation requires retirement investments that have a growth component such as stocks or real estate.

The amount of retirement income you need to draw from your savings, just to maintain your lifestyle, will increase with time. Other costs, such as medical expenses, are also likely to rise as you grow older. It can be difficult to really envision what your life will be like in 20, 25, 30 or more years, and for that reason, many retirees begin retirement taking too large a percentage of their savings. The simple fact is, the longer you plan to be in retirement, the lower your initial draw down rate must be to ensure your principal is able to grow and keep up with inflation. Figuring out what you should take will require analysis of your life expectancy, the number of guaranteed/lifetime income sources you have (such as pensions or annuities), and the composition of your portfolio.

Tax & Estate Planning Strategies

Tax efficiency is very important when it comes to retirement and income planning. We understand that trading within your accounts, capital gains, RMDs, and wealth transfer may incur unnecessary taxes. Our goal is to keep your best interests in mind while minimizing your tax impact. We can also suggest strategies to help reduce estate taxes and transfer personal and family business assets to heirs quickly and privately, preserving what you spent a lifetime to build.