Clarity. Transparency. Empowerment.

Take control of your retirement.

Your Unique Solution

At Euclid, we believe knowledge is the foundation for making smart financial decisions. We break down the following financial elements in easy-to-understand language to help you craft your unique retirement solution.

Three Worlds of Money

In the financial world, your money can typically be invested in three common places: a bank, the market or an insurance company. 

All three of these Worlds are typically part of an effective retirement plan. They all have different distribution considerations and mechanisms and, when used together appropriately, they can help reduce the risk of catastrophic failure in your long-term retirement plan. 

The three worlds of money “Bank”. When we say "Bank" we are talking about the entire federal financial institution, not just your local retail bank or credit union that you can walk into. The entire federal banking system governs interest rates and determines how cash flows to and from your local retail bank that can also affect how you use your cash in your personal checking or savings accounts.  This needs to be considered for several reasons, one being it will determine your Predictable Distribution Rate. These products are federally insured up to applicable limits.

The three worlds of money “Market”. When we say Market we are talking about all of the investment exchanges that allow you to buy or sell investments, which are subject to market risk and potential loss.  This includes but is not limited to stocks, preferred stocks, bonds, mutual funds, ETF’s, debentures, notes, options, commodities, REITs, UITs, closed-ended funds, open-ended funds, ADRs, not to mention all of the employer-based retirement accounts from 401k’s through 412i’s.  This needs to be considered for several reasons; one being it will determine your Flexible Distribution Rate as well as affect your long-term tax rate.

The three worlds of money “Insurance”. When we say Insurance we are talking about financial products that are designed primarily to distribute income or protect against loss of principal of some type.  This needs to be considered for several reasons; one it will determine your Guaranteed Distribution Rate as well as your minimum standard of lifestyle. The guarantees in these products are based on the financial strength of the individual issuing company.

Cash Flow

Personal cash flow management creates a balance between your cash inflow and cash outflow Within our retirement income planning system, it affects how your money interacts with the bank, market, and insurance by organizing it into three places: daily, emergency and storage.

The three worlds of money; aka, the bank, the market, and the insurance, are three different asset types that work together to compose or fit into the income cash flow model which makes up your entire retirement income.

Remember income is not a one size fits all; it is not one layer of protection.  Income typically involves three distinct forms, and their characteristics are unique regarding predictability, flexibility, and guarantees.

It’s important to understand these three asset types before you start budgeting for your future because these are the primary key financial areas that can help you get a grasp on where your money exactly is and can help you categorize the cash that you’ve been saving up for future use or retirement.

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Stages of Retirement

Your retirement can be divided into five phases:

Pre-Retirement: setting your retirement expectation while you're still working.

Retirement Vacation: The initial transition period where retirees discover what their new lifestyle is going to look like.

Active retirement, living the stereotypical retirement dream.

Stable retirement as life starts falling into patterns

Limited retirement as time and age slow down your activities and abilities

With knowledge comes transparency. Our goal is to help you understand how all of these elements work together within your retirement plan and empower you to take control of your financial future.

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For more information about any of our products and services, schedule a meeting today or tune in to The Retirement Factory.

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