GRA Approach to Income Allocation PlanningGRA's core offering is a plan for Retirement Income (“Plan”), which concentrates on helping clients achieve security in retirement, with the goal of maximizing their dependable, spendable income. A Plan will integrate (1) investments in major savings sources, including Rollover IRAs, after-tax personal savings, equity in a primary residence, and fixed and variable deferred annuities, and (2) income annuities (“IA”). A Plan may incorporate all of a client's retirement savings or a single savings source. GRA uses proprietary software and analytics to conduct retirement income planning with clients.
The Income Allocation Plan (IAP) is a specific application of the GRA planning approach that we are testing on the Go2Income website to see if individuals can use the IAP tool to design a basic plan on their own. IAP is limited to two savings sources: Rollover IRA and after-tax personal savings.
IAP includes the following income sources: managed withdrawals from model investment portfolios in IRA accounts, interest and dividends on model portfolios in after-tax personal savings accounts, and annuity payments from both immediate and deferred income annuities. GRA utilizes several basic model portfolios in doing its planning and uses deterministic assumptions regarding model portfolio performance in designing a Plan, the objective of which is to extend cash flow for the lifetime of a client, with less dependence on future market performance. The income annuity payments are based on the Go2Income proprietary annuity pricing methodology. There is no assurance that the purchase prices in the commercial annuity market place may be as favorable.
After a Go2Income visitor designs a basic IAP, and decides to proceed with implementation, GRA will then ascertain the client's complete financial situation, risk tolerance, and income objectives. All recommendations are made by GRA based on this provided information. Following its review, GRA will provide the client with the Plan in the form of a written report of the analysis and recommendations.
All recommendations made by GRA are opinions only and are derived from sources and information believed to be reliable which GRA cannot warrant as to accuracy. GRA's recommendations are based on professional training, experience and judgment. GRA makes various assumptions considered to be reasonable, but no guarantee can be made that actual events will occur as assumed. A description of the principal assumptions will accompany the Plan delivered to each client.
GRA does not provide tax or legal advice or prepare legal documents for the implementation of the Plan. Every client should consult with a tax and/or legal adviser for such guidance, and GRA assumes no responsibility for legal or tax consequences. A client is free at all times to accept or reject or independently implement any of GRA's recommendations.