Create a Stable, Secure, Sustainable Plan that Lasts for Life
Modern Retirement Theory
Modern Retirement Theory (MRT) is a comprehensive retirement planning process created by Jason K. Branning, CFP® and M. Ray Grubbs, Ph.D to offer customized solutions for each individual retiree. The goal of this proprietary process is a retirement plan that is secure, stable, and sustainable for the retiree’s lifetime.
MRT Model encompasses the following premises to build a retirement plan:
A hierarchical priority of retirement funding can be established to offset retirement risk.
At BWM we believe that retirement should be considered an absolute goal, rather than a relative one. Pre-retirees seek to retire and stay retired. By prioritizing retirement goals in the planning process, funds can be established to offset retirement risks.
We utilize this model to help our clients achieve their desired results. By revolving our Retirement Planning practice around MRT, we prioritize goals around the “unknown” – market declines, health events, etc. while also gaining a complete understanding of the “Core 4” foundations: Base Fund, Contingency Fund, Discretionary Fund, Legacy Fund.
Aligning Income and Expenses
The MRT process also strives to match Base Expenses with Base Income. Base Income should be stable, secure, and sustainable throughout the retirement horizon. We help our clients build their Base Fund through the following steps:
- Determine Monthly Retirement Expenses.
- Determine Social Security timing & strategy.
- Match Base Expenses against Base Income & determine income deficit.
- Cover deficit by converting assets (IRAs, 401ks, Investment Accounts, etc.) into income producing holdings. Remaining Base Income should be created using bond ladders, annuities (SPIAs, DIAs) or potentially other contractually guaranteed options.
- Calculate the Critical Path®.