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Have You Ever Wondered If You Can Retire, Stay Retired, and How Much You Can Safely Spend Without Running Out of Money?

Perhaps I can help. My name is Michael Paulding Thomas. I'm a German-American independent Investment Advisor and Securities Principal. Since 1989 I've helped over 200 clients build a "retirement machine" that gives them a lifetime guaranteed monthly income 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.

For nearly 30 years, financial economist and investment writer Mark Skousen has been collecting all the old wise adages, proverbs, and legends on Wall Street, based on in-depth interviews with old timers, reading rare financial books, and his own experiences in the financial markets. Maxims of Wall Street is the closest thing to Wall Street scripture ever created.“Love you great little book. I plan to shamelessly steal some the lines.” ―Warren Buffett“Beautifully bound collector’s item. It should be on every investor’s bookshelf and read regularly.” ―Bert Dohmen, The Wellington Letter

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.“Capital, the parent firm of American Funds, is one of the finest business organizations in American Business. This book was written by an index fund/no-load proponent who was looking to debunk American Funds (which are neither indexed, nor no-load) and instead he discovered their exceptional values, performance and pricing. This story is fast-paced and highly interesting, both to Advisors and clients.” ―from the forward of the book.

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: 4-Step Process

Step 1We'll have a candid, relaxed and easy-going conversation about your retirement, and any other investment goals you have. I'll explain my philosophies and strategies.(You can schedule a convenient time here.)After our conversation you're going to come to one of two conclusions:.A) "I could probably do this myself." Or, "I don't really like Michael." Or "His concepts don't make sense to me." That's not my favorite option but it's totally fine!B) "I like what I'm hearing and Michael's ideas resonate with me. I want to see what he can do for me." If this is you, then we'll move to Step 2.

Step 2I 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 3After 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 so that you don't just retire, but you stay retired with a sustainable monthly income designed to weather market swings and rising costs.

Step 4If my plan resonates 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.

“Successful investing in counterintuitive.” ―Nick Murray“I’m convinced that everything that’s important in investing is counterintuitive, and everything that’s obvious is wrong.” ―Howard Marks

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.Doing what's right 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.I can help you make sense of the myriad of retirement accounts and investments.

“You don't pay me for the few minutes it takes me to provide you with my best advice - you pay me for the 36 years it took me to know how.” ―Michael Paulding Thomas“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.

“An advisor who can modify your behavior is one of the most important investments you make.” ―Chris Davis, Independent Director at Berkshire Hathaway and Coca-Cola“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“Proper investment strategy is as much of a psychological as an intellectual challenge. It is often best to seek professional help to structure and maintain a well-diversified portfolio.” ―Jeremy Siegel

Two Temperaments

1. My expertise is best suited for families who are serious about retiring in complete financial security someday (or those who are already retired and want to ensure they stay that way).2. The clients I most enjoy serving are open to professional relationships and have a genuine desire to be helped, which most reliably manifests as teachability.Because my approach to investing is so very countercultural ― being entirely goal-focused and planning-driven in an environment that is overwhelmingly market-focused and performance-driven ― I am looking for people with the ability and willingness to adopt that approach.If you're interested in delegating retirement planning to an expert so that you can spend time on things that matter most to you then I think we'll work great together.

Investible Assets

Many advisors only work with people who have a substantial amount of wealth. I, however, don't require an asset minimum, so you don't have to be rich to benefit from my advice (I have a quite a number of clients in their teens and 20's).

“Anyone earning more than he is spending is a prospect for managed money.” ―Nick Murray

Geography & Flexibility

Though I reside in Southern California I often work remotely (phone, email, video, etc). In fact, I have more clients outside of California than I do locally. I am licensed in AR, AZ, CA, FL, GE, IN, KA, MI, MN, NC, NV, NY, OK, PA, TN, TX, VA (I can add any state, if needed).

Life insurance ensures that if a breadwinner passes (and thus their income stops) the family has the funds to continue living their lifestyle and doesn't tap into their retirement accounts.There are two types of life insurance:1. Term: Pure insurance. Cheaper.
2. Cash-Value: Insurance + Savings. More expensive.Always buy term insurance and invest the cost difference in equity mutual funds. Never, ever buy any form of cash-value life insurance (whole life, universal life, variable life, etc.) regardless of what the insurance salesperson tells you.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.For a deeper-dive read my article Protecting your Family with Term Life Insurance.

When you pass away, your estate normally goes through a process called probate, which can be costly and delay the transfer of property to your beneficiaries.There are only three ways to avoid probate: 1) live forever, 2) don’t own anything, or 3) get a living trust.Briefly speaking, there are three primary benefits of a living trust:1. Private: the size and distribution of the estate remains private.2. Avoids Probate: saves the beneficiaries time, money and hassle.3. Living Benefits: your instructions regarding your health and finances are followed if you are still alive but become incapacitated.Don't rely solely on a will. Wills still go through the probate process.For a deeper-dive read my article Protecting your Family with a Living Trust.

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 Murray

My 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.
Sequence of Retirement AccountsAs stated above, always use all-equity mutual funds as the investment "inside" of the tax shelters.1. 401(k). Contribute up to the matching point, then stop. Always utilize the Roth version, if it is offered.2. SEP IRA. If you're self-employed and/or get paid via 1099.3. Roth / Traditional IRA. Fully-fund your IRA. Roth is preferable, if you qualify for it.4. Do all of the above for your spouse, if applicable.5. 401(k). Go back to your 401k and contribute past the matching point up to the maximum allowed.6. 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 provides a minimum 5% guaranteed withdrawal for the rest of your life (you only pay taxes on the withdrawals while the balance remains tax deferred).When you pass away, the income continues guaranteed for your spouse. When he/she passes your children inherit the account balance.Tip: When you’re approximately 10-years from retirement consider this product.

• View my Retirement Presentation