Preservation Specialists, LLC
Founder and Owner
Patrick (Pat) Strubbe is the founder and owner of Preservation Specialists, LLC, established in 2003. Pat and his team offer a dynamic process that integrates their clients' financial resources with their vision of personal fulfillment and security. Since 1997, Pat has been teaching consumers age 50+ how to preserve their assets and increase their income through the use of tax efficient strategies.
Pat vividly remembers being in high school and how his grandfather’s need for nursing care at that time affected his entire family. His mom having to handle the bills and coordinate payments, his grandfather having to depend on someone else to take care of him both physically and financially — the entire situation wore down the family. This experience is what gave Pat the desire to help people attain their financial goals and avoid the problems his family faced.
A well-known financial educator and retirement planning specialist, Pat is a recurring guest on the WIS (NBC)-TV news with anchor Dawndy Mercer Plank. He also was the financial columnist for the Lexington Chronicle for many years and has been featured in USA Today, Columbia Business Monthly, Investor’s Business Daily and other national publications. He has been a featured guest on numerous radio shows around the country and is often recruited as an area "expert" in the field of retirement planning. He is the host of the show “Retirement with Confidence” on WVOC and author of the Amazon.com best-selling book, “Save Your Retirement from Mass Destruction by the 7 Retirement Villains!” His professional designations include Chartered Financial Consultant (ChFC), Chartered Life Underwriter (CLU) and Registered Financial Consultant (RFC).
Pat lives in Columbia, South Carolina, and is married to his beautiful wife, Janelle, who works as a nurse. He is the proud father of three children: son Carter and daughter Ava are students at Dutch Fork High School, and baby Gabriella is enjoying time at home with her mom and dad. Plus, he and his family are excited to announce that Pat and Janelle are expecting a girl later this year!
Pat enjoys watching NBA basketball games with his friends and family. He loves to see his favorite team, the LA Lakers, whenever he can, and has fond memories of watching the Lakers in the era of Magic Johnson from his youth. Pat also is an active member of Hope Lutheran Church in Irmo, where he has served as an elder of finances since 2003.
BS, Accounting, Purdue University
Securities offered through Kalos Capital Inc. and investment advisory services offered through Kalos Management Inc., both at 11525 Park Woods Circle, Alpharetta,Georgia, 30005, (678) 356-1100. Preservation Specialists, LLC is not an affiliate or subsidiary of Kalos Capital Inc. or Kalos Management Inc.
This is a great question, as we all should consider what type of allocation makes sense to us based on where we are in our lives. 2 to 5 years from retirement is definitely a critical time to make sure your allocation is set the right way for you. There are very few savings or investment vehicles that can truly provide you with some kind of "guarantee," and a fixed annuity is one of them.
Based on the information you have provided, this is definitely a good approach. The goal should always be to do the following:
1. determine the safe versus growth balance that is right for you, and then,
2. monitor both types of savings and investments to ensure you're getting the best return with least risk.
Unfortunately, with interest rates at historically low levels, finding a good solution for your goal is extremely difficult. I look at it this way - there are three things most of us would love to have from our investments: 1) growth, 2) safety, and 3) accessibility. However, there is no one investment that provides all three. If someone tells you they have something with all three, BEWARE! :-)
To some degree, in your question, you're looking for all three. You mention growth, but also the safety to know that you won't have a negative return. Finally, you need access in two years, when many investments will require more time. If I were you, I would give some thought to those three possible goals and prioritize them. Most likely, you want accessibility within two years primarily, then you want safety next. Growth is actually the last of the three. In this case, unfortunately, you may not have a better option than on online money market or shopping for the best CD rates.
I'm sorry I don't have better news. I hope that helps, and I wish you all the best!
You've asked an very important question, although I believe it is challenging to answer with only partial information. Having said that, I'll offer my opinion as best I can:
While there is nothing wrong with the American Funds, I personally believe that a different investment strategy would be extremely beneficial. Since you have mentioned that you have reached the point where you have a Required Minimum Distribution (RMD), this means that for the rest of your life, you will be required to take money out of your retirement account. It sounds as though all of your funds are invested in assets that can go up or down in value on any market day, such as long term bonds. This means that your current strategy is based on what we would call "Reverse Dollar Cost Averaging."
I would encourage you to google "Risks of Reverse Dollar Cost Averaging," as it would be difficult to cover this topic in detail here. Basically, by taking systematic withdrawals from an account that can drop in value, you are creating additional risk for yourself. While there is nothing wrong with having some of your retirement account in American Funds, we would strongly encourage you to diversify some of your retirement account into assets that either provide a guarantee of principal or generate steady dividends that can help cover your RMD each year. This way if the American Funds are down in value, you may not have to sell them at such a low value.
I hope this helps, and I wish you the best!
This is a fabulous question! My answer would be similar to a couple of different books that address this in greater detail:
1. The Richest Man in Babylon
2. The Automatic Millionaire
The short, sweet summary of these books is to pay yourself first, and to set it up in a way that it is automatic, so you do not have to think about it, and so that it is not dependent on your feelings or actions on a daily, weekly, monthly, or yearly basis.
I wish you the best of success!
This is a great question! I believe the answers depends heavily on each individual advisor. Many "financial advisors" really like to focus on helping you accumulate wealth through investing recommendations and strategies. These types of advisors most likely would not provide asset protection guidance. What you would want to search for is a comprehensive financial planner. For example, our expertise is in doing comprehensive financial planning for those close to and in retirement. This planning covers five different areas:
1. Retirement income planning
2. Investment planning
3. Tax planning
4. Healthcare and insurance planning
5. Estate and protection planning
When shopping for an advisor, I would make sure to ask questions about what their focus is. One final thought, a good comprehensive financial planner will most likely also have a relationship with an attorney who may also be able to help with asset protection.
Best of success to you!