Un­der­stand­ing Your Op­tions

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New­Bridge Re­tire­ment Ad­vi­sors

Dur­ing his first week at a large bro­ker­age firm, the new in­tern thought the firm was just hav­ing an un­usu­ally busy day. As it turns out, young Peter Car­masino found him­self smack dab in the mid­dle of the 1987 stock mar­ket crash.

“I was hooked into the or­ga­nized chaos of it all,” he said, re­call­ing its in­ten­sity. The next day he bought The Wall Street Jour­nal and be­gan to study the mar­ket. Now, more than 25 years later, Car­masino will tell you plainly that the or­ga­nized chaos which so at­tracted him in the first place is now the very thing he tries to avoid.

Car­masino started his own company, New­Bridge Re­tire­ment Ad­vi­sors, fo­cus­ing on build­ing re­la­tion­ships with clients by pro­vid­ing bal­anced strate­gies to meet their long-term fi­nan­cial needs. New Bridge works best with clients in the pre-re­tire­ment stage, with base as­sets of about $250,000. “That’s re­ally our sweet spot be­cause it gives us the ca­pa­bil­ity of run­ning a multi-faceted, multi-strat­egy plan.”

Build­ing from a client’s ex­ist­ing as­sets, Car­masino ex­plained how New­Bridge ap­plies a unique ap­proach to cre­at­ing a plan. They of­fer a “func­tional di­ver­si­fi­ca­tion,” a strat­egy that goes beyond the typ­i­cal as­set al­lo­ca­tion model by tak­ing ad­van­tage of trends in the mar­ket­place.

For to­day’s pre-re­tiree, Car­masino’s ad­vice is to un­der­stand that longevity is the num­ber one re­ducer of re­tire­ment in­come or as­sets. Longevity is in­creas­ing, mak­ing long term care as well as plan­ning for in­fla­tion crit­i­cal to de­vel­op­ing a suc­cess­ful multi-strat­egy plan.

“Tra­di­tion­ally, peo­ple have come into re­tire­ment from an ac­cu­mu­la­tion plan – their 401(k), or an IRA, for ex­am­ple – look­ing for it to per­form the best it can for as long as it can,” he said, con­tin­u­ing, “But then we have the kind of re­ces­sion we had be­tween 2007 - 2009. I am meet­ing prospects to­day who are just now start­ing to see a bet­ter than break-even point from the pre-2007 days. If you re­tire into that kind of en­vi­ron­ment with an ac­cu­mu­la­tion strat­egy, it’s almost im­pos­si­ble to make back the money that you with­drawal in a de­clin­ing mar­ket.” In­come plan­ning pro­vides a foun­da­tion for the port­fo­lio’s sta­bil­ity, and New­Bridge then starts to strate­gi­cally take on risk based on trends. “The team of money man­agers that we use have strate­gies that will move in or out of the mar­ket based on the cur­rent trends,” Car­masino de­tailed.

His re­tire­ment plan­ning method cre­ates what he refers to as an “in­come floor” first. This in­come is matched to the house­hold ex­penses. After that is es­tab­lished the re­main­ing as­sets are ex­posed to the mar­kets. This method helps gives the in­vestor a pre­dictable in­come for 8 - 10 years while al­low­ing a smaller por­tion of their as­sets to grow in the mar­kets.

By mak­ing use of client com­mu­ni­ca­tions, re­port­ing, and clearly de­fined fee struc­tures, New­Bridge places clients in a bet­ter po­si­tion to un­der­stand the ad­vice be­ing given and the ben­e­fit to them. This in turn cre­ates trust be¬tween the client and ad­vi­sor, which is the foun­da­tion for a long term re­la­tion­ship. “We’re on the side of the client much more than the av­er­age ad­vi­sor,” Car­masino em­pha­sized. “But I en­cour­age clients to trust, and then ver­ify where their as­sets are be­ing placed.”

Pete Car­masino, Re­tire­ment Ad­vi­sor

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