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Are You Approaching Retirement? Perhaps I Can Help.

Hi, my name is Michael Paulding Thomas. I'm a German-American independent Investment Advisor and Securities Principal. Since 1989 I've been helping my clients create a guaranteed income stream to ensure they don't outlive their money in retirement.When you think of your retirement, does it seem more probable that you will outlive your money or that your money will outlive you?Here's what I offer: a no-cost, no-obligation second opinion to help you figure that out.If you're open to it, I'd like to have relaxed and easy-going conversation with you about your retirement plan. If I think your investments continue to be well-suited, I'll gladly tell you so, and be on my way.If, on the other hand, I think some of your strategies no longer align with your Golden Years, I'll explain why in plain English and recommend some alternatives.

• Start Here: My Process & My Philosophy

With over three decades in the Investment Advising business, I can attest that this is the simplest and most effective investment book I’ve ever read.If this book resonates with you, then you’ll enjoy working with me. If it doesn’t, you won’t.

This is a collection of quotes and thoughts from some of the world's greatest investors.This is a free PDF just click the image to open it.

The best book on the history of Capital Group. Find out what makes American Funds so special.

Nick Murray says: "I think so highly of this book that I’ve bent my unbreakable rule never to provide jacket blurbs. The compounding of growing dividends is at the core of David’s investment policy. You will particularly wish to consider his recommended withdrawal strategy, which I’ve not seen anywhere else."

The Surprising Secrets of America's Wealthy. One of the best books I've ever read on personal financial success.

How the less affluent have fallen into the elite luxury brand trap that keeps them from acquiring wealth and details how to get out of it by emulating the working rich as opposed to the super elite.

This is my favorite investing podcast from my favorite management company.Want to learn how professional investors do it? The weekly, 30-minute Capital Ideas / American Funds audio podcast brings you the latest investment thinking from Capital Group. Each episode gets inside the minds of portfolio managers, analysts and economists to break down market trends, macroeconomic forces, investing approaches and lessons learned from personal experience.

Capital Conversations is a Capital Ideas video podcast offering an unscripted look into The Capital System.Join Mike Gitlin (CEO of Capital Group) as he hosts in-depth discussions with Capital Group's portfolio managers, analysts and senior leaders from around the globe. Gain unique perspectives on investment strategies and market trends while getting to know the people behind the portfolios.

This essay started over 36 years ago when I entered into the investment business and began cataloging my beliefs and insights. Eventually I shared it with a few clients (on physical paper!) when they asked for a brief summary of my financial philosophy, strategies and service model. What you're reading here is the most current edition of my original notes.

Getting Started ― The Process

Step 1. We'll have a candid, relaxed and easy-going conversation about your retirement, and any other investment goals you have. You can schedule a convenient time here.
 
Step 2. I will collect the information and documents from you I need to create an easy-to-understand plan that is the most efficient, most effective, least complex, and least expensive way to accomplish what you want.
 
Step 3. After I design the plan I'll explain it to you plain English. I'll walk you through the different retirement accounts and ensure you're contributing the right amounts to the right places.
 
Step 4. If my strategies resonate with you we will complete the paperwork to get your account(s) set-up. If needed, I will do all of the behind-the-scenes legwork of contacting your old accounts to facilitate the transfers.
 
I will do my utmost to keep the process quick, simple and as painless as possible for you.

My Follow-Up & Service Model

1. First and most important, please don't hesitate to call, email or schedule a time with me for any reason whatsoever. I commit to returning your emails, calls, and voicemails within 24 hours. Note: all account-specific, product-specific and Advice needs to be communicated via email or phone, not text.
 
2. Next, I’ll certainly call/email if something is going on that’s important enough to require a decision of some sort. This will rarely happen, as our whole philosophy is based on not reacting to current events in the economy or the markets.“Nothing that happens in 90 days can have any bearing on a long-term investment plan.” ―Nick Murray
 
3. Once a month I will email my client newsletter which includes the current month's Nick Murray's Client's Corner (must read!), among other interesting investing content.In the July and January issues I will include my Mid-Year and Year-End Client Letters.
 
4. Finally, every January I will email a summary of your plan, and most importantly show you the number of shares you own of your mutual fund(s).
 
Other than that: not much. It’s deliberately relaxed, informal, friendly - but most of all open, in both directions.

1: Counter-Cultural

I have a unique point of view that can be described as going upstream to the traditional financial industry and often times against conventional wisdom. I commit to always tell you the plain, unvarnished truth, especially when you may not want to hear it.Investment Philosophy - I am goal-focused and long-term oriented in an industry that will always be market-focused and short-term performance-driven.Investment Strategy - I believe in historically defensible, broadly diversified equity mutual funds vs the current "hot" du jour investment of the moment. I am data-based and fact-driven.

2: Do What's Right

As the name of this site suggests, putting my clients first has been my guiding philosophy since I started in this industry in 1989.I’m a fiduciary advisor. That means I am legally and ethically obligated to act solely in your best interest. As an independent my loyalty is solely to you, not to any company or product vendor. My goal is to help you build a retirement that truly gives you peace of mind.When I sit with a client I ask myself, "What would I do for myself and my family if I were in this situation?" Then that's what I recommend.This includes the way I charge fees. Lower costs for you takes precedence over my income.

“I want to be happy by doing well by doing good.” ―Michael“Don’t sell anything you wouldn’t buy yourself.” ―Charlie Munger“The truth tellers have no competition.” ―Nick Murray

3: Make a Complex Subject Simple

I keep my presentations, explanations, strategies and investments as simple as possible. I don't use fancy jargon nor try to impress you with sophisticated language, charts and graphs. I cut through the industry's noise and complexity and provide a straightforward answer.

“Everything must be made as simple as possible, but no simpler.” ―Albert Einstein

4: Behavioral Coaching

At the end of an investor’s life, 95% of his total lifetime return will come from how the investor behaved. And the primary determinant of that behavior will be the quality of the advice he got, or didn’t get. I believe you will do far better in real life with an empathetic, tough-loving behavioral coach than you will on your own.

“Without an adequately compensated advisor to help with selection and discipline, the individual investor will simply make all the classic and horrendous mistakes.” ―Nick Murray“People make better decisions with financial advisors.” ―Robert Shiller, Nobel Prize-winning economist

Retirement ― Accumulation Phase

Invest 100% in the World’s Great CompaniesMost people who invest most of their capital in fixed income investments as they go into retirement will run out of money well within their lifetimes. You are not investing to retirement, but through retirement, and very probably on to the next generation. The right answer is to invest in historically defensible, broadly diversified, equity mutual funds.“Equities are the only asset class that fully captures human ingenuity, which is the most valuable asset on earth.” ―Nick MurrayMy equity investment management firm of choice is Capital Group / American Funds (all of my family's money is managed by them).I have a strong conviction in dollar cost averaging.Finally, I don't believe in chasing whatever the the current "hot" investment of the moment is (crypto, hedge funds, alternatives, REITs, options, futures, opportunity funds - the list is endless). I am data-based and fact-driven.1. 401(k). Contribute up to the matching point.2. Roth / Traditional IRA. Fully-fund your IRA. Roth is preferable, if you qualify for it.3. 401(k). Contribute past the matching point up to the maximum allowed.4. SEP IRA. If you're self-employed and/or get paid via 1099.5. Variable Annuity. If you have additional money available to invest for retirement, use a "stripped down" VA for tax-deferral.

Retirement ― Withdrawal Phase

Have an Intelligent Withdrawal StrategyAmericans say that what they want for retirement is safety and income. What they really want is all the income they can get, and the illusion of safety.In many cases the best vehicle to create a guaranteed retirement income that outpaces inflation is a variable annuity with a guaranteed income rider that is invested in 100% equity mutual funds, and yet provide a minimum 5% guaranteed withdrawal for the rest of your life.When you’re approximately 10-years from retirement start this product.

• View my Retirement Presentation

Minor Accounts

1. UTMA. When saving for your child for non-education purposes invest in a Uniform Transfer to Minor Act.2. 529-Plan. For higher-education / college invest in a 529-Plan.3. Roth IRA. As soon as your child as earned-income, such as a summer job, have them invest in a Roth IRA.4. ABLE Accounts. Achieving a Better Life Experience Act allows individuals with mild to severe disabilities to open investment accounts.

Emergency / Protection / Insurance

1. Emergency Fund. I recommend saving three to six months living expenses. I like the American Funds Tax-Aware Conservative Growth and Income Portfolio.2. Living Trust. If you are married, have kids or real estate you need a living trust to avoid probate (and much more).3. Term Life Insurance. Always get term insurance. How do you know if you need life insurance? Will your spouse/kids will have financial problems if you die?  If 'yes' then you need it; if 'no' then you don't.

• Read My 6 Bread-and-Butter Fundamentals