Income Strategy Generator™ Software Version 3.0

There are countless software programs available to assist with financial planning.  But there are relatively few designed specifically for optimizing steady, dependable, and long-term investment income.  The ones that are intended for this purpose often focus on identifying a safe withdrawal rate for a Systematic Withdrawals approach using either historic rates of return or a Monte Carlo algorithm.  They focus on withdrawal rate and neglect withdrawal strategy.  Assets are typically allocated according to Modern Portfolio Theory principles and classic measures of risk tolerance---even though these methods were not designed for distributing income.  

The Income Strategy Generator™ or ISG™ software is different.  It is based on a strategic approach to withdrawing investment income that we call Defined Withdrawals.  An Income Ladder of fixed-rate investments is used to create certain (or defined) income for a predetermine number of years. Often the income ladder is supplemented with stock dividends.  Stock investments are used to provide long-term growth and inflation protection.  The income ladder allows stocks to be held for the long-term when necessary.  Good diversification coupled with some basic guidelines about when to sell stocks, are also key to achieving desirable results.  We call this Navigating.  See our free book for a more complete explanation.

With a Defined Withdrawals plan, the asset allocation is not driven by a fuzzy measure of risk tolerance.  It is driven by the duration of the income ladder.  For example a plan with a 12-year income ladder will require more fixed-rate investments, and is more conservative, than a plan with an 8-year income ladder.  This type of asset allocation offers a more meaningful and intuitive way to assess risk when steady and dependable income is a primary objective.

This is a unique planning tool, and we are certain there is nothing else like it.  A great way to better understand its capabilities is to download the free accompanying book and review the examples.  The software also provides an extensive set of printable color graphs and reports.  If you are a financial advisor and looking for a way to develop and build your retirement income planning business, this is an ideal tool for you.  Use it to differentiate yourself from the systematic withdrawals crowd and to provide more strategic income plans to your clients.