The results for the low end of the range reflects a 70% likelihood of achieving the amount shown or better, and the high end of the range reflects a 50% likelihood of achieving the amounts shown or better. These results are determined using a Monte Carlo simulation-a forward-looking, computer-based calculation in which we run portfolios and savings rates through hundreds of different economic scenarios to determine a range of possible outcomes. We assume salary growth based upon a women-specific salary curve provided by Morningstar Investment Management LLC, and that you save 20% of your salary each year. Fees include those for the recommended ETFs and Baobab Wealth’s fee of 0.50%. The high end of the range assumes that 20% of your salary is invested with Baobab Wealth in a diversified low-cost ETF portfolio comprised of 91% equity to start and growing more conservative towards the end of the investment horizon (40 years). Fees include average mutual fund fees and an assumed advisory management fee of 1%. The low end of the range assumes that you invest 20% of your salary ($85,000 currently) with a financial advisor in a diversified mutual fund portfolio comprised of 60% equity and 40% bonds, which is rebalanced to this allocation each year. HOW WE CALCULATED THIS INVESTMENT PROJECTION The banking account results assume a 1% long-term average annual cash return over 40 years. HOW WE CALCULATED THIS RETURN BY SAVING IN THE BANK We sum up both projected salaries over 40 years, in today’s dollars, and calculate the difference. We projected the salary of a 30-year old woman currently earning $85,000 and one earning $110,500 (assuming a 30% raise) using a women-specific salary curve from Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc. HOW WE CALCULATED THIS INCREASED EARNINGS WITH A RAISE We added up her projected salary each year over her 40-year career. To project the salary of a 30-year old woman currently earning $85,000, we used a women-specific salary curve from Morningstar Investment Management LLC, a registered investment adviser and subsidiary of Morningstar, Inc., which includes the impact of inflation. HOW WE CALCULATED THESE LIFETIME EARNINGS If this sounds like you, and your situation, we invite you to schedule a friendly introductory meeting with us to learn more and explore the possibility of a partnership. You tend to be more optimistic than pessimistic. You would like to see choices in how your retirement income could be structured and not just offered one solution or product. You don’t want the cookie cutter advice you have realized is offered at most financial planning firms these days and would prefer a personalized plan that reflects your specific dreams and goals. We wrote the book on this subject and you can learn more at. If you also want to pay the IRS the least amount of tax and achieve (or be as close as possible to) the 0% tax bracket (yes, this is absolutely possible) in retirement, we are probably the right firm to work with. We best serve savers who have accumulated between $250K and $3M of investable assets. If you want to understand the best way to create a safe, increasing and predictable income you can’t outlive, we are the right firm for you. We are comprehensive financial planners, but specialize in tax-efficient retirement income planning. This is the 10 years leading up to your retirement (financial independence) date as well as the first 5 years of retirement. Our most valuable work is done for those in the retirement ‘Red Zone’, where getting it right is crucial to long-term financial success. We enjoy working with those who strive to be and do better than average. Thus, we like to focus our work on those we can serve best with our expertise.įirst, we are only looking to work with those seeking a long-term, trusted relationship with a fiduciary financial advisor and have specific goals and ideas for their future. Although it would be great to help everyone achieve financial independence, the truth is, like everyone, we have limited time and capacity.
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