Our Approach to Creating
Your Income Stream

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Your withdrawal rate

Most income streams begin from the age-old distribution Rule of Thumb of 4%. Social Security, required minimum distributions and insurance income distributions use some form of the "4% rule". At Lettin & Company, Inc., so do we. With all distributions you must be flexible if adjustments and changes need to be made.

Investment Portfolio

If you’d like $66,000 a year to live on, you'll need a plan that calculates how much principal you require to reach that goal.

Comfortable Life

If you’re not clear on how much money you need for a comfortable life, the US Bureau of Labor Statistics research shows Americans close to retirement spend about $66,000 annually per household on food, housing, clothing and transportation.

Greater Retirement income

Retirement income is a numbers game. The more money you put into your investment portfolios, the greater your retirement income.

Long-term growth rates should
exceed your withdrawal rate.

We focus on determining the income you want or need before or at retirement. As long as your portfolio growth rate exceeds your withdrawal rate, you will not outlive your money.

Calculating Your ‘Expected Return’

It’s our job to calculate what’s known as the “expected return” of the portfolios we manage. Here’s how we do it.

Our portfolios include over 21,000 unique holdings. These holdings reside in 21 different asset classes. Each asset class has an expected return. We combine these asset classes to offset each other. When some asset classes are up in value, other asset classes may be down in value.

The good news is that it's unlikely all of your asset classes will be down at the same time.

When the portfolio allocation of your asset classes is out of balance, we take profits from those asset classes that have exceeded their allocation percentage and buy those asset classes that have declined from their allocation percentage. This is called rebalancing — automatically selling high and buying low.

The goal of our process is to increase returns while lowering portfolio volatility.
money managers.
money managers.

We’ve hired third-party money managers to invest and rebalance each portfolio. This brings a team of more than 1,000 traders, researchers and academics to back you and us up.