Understanding Your Options
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