Broker Check

A Revolutionary Approach

   Brandon Scott Smith, MBA, CLU, ChFC - Milestone Financial Solutions

“I believe that the Portfolio Waterfall strategy is a revolutionary approach to investment planning. Most recently, Jimmy and I have been using the strategy for a young, retiring corporate executive with a $2,000,000 457 Top Hat plan – a Charitable Remainder Trust allows her to offset a portion of the tax burden while receiving a lifetime income of 5% of her account’s value. Sustaining that distribution over 30-40 years would be very difficult with traditional income strategies that limit withdrawal rates to 3-4%. Thankfully, the Portfolio Waterfall strategy allows withdrawals of 6-8% by creating a replenishing income account fed by capital gains, dividends, and interest from seven different asset classes, which means that selling shares in volatile markets can be avoided. The Portfolio Waterfall strategy can also be applied to life insurance and annuity subaccount allocations using the same cash flow management principle, I look forward to building it into our entire planning process.”