Unlock Your Code 2 Retirement™
Investing alone is not a retirement plan. Code 2 Retirement™ is EFC’s proprietary framework for coordinating the five critical levers of retirement: growth, income, safety, tax planning and cash.
Created by Cory J. Chapman, author of The Retirement Game, the framework is designed for individuals and families within about ten years of retirement, or recently retired, who want every part of their financial picture working together.
Investing involves risk, including the possible loss of principal.
Is Your Retirement Built on One Lock or Five?
Many people approach retirement with a collection of accounts, a pension estimate and a general idea of what they will spend. But a portfolio on its own may not answer the questions that matter most when the paycheck stops.
Consider these important questions:
- Where will my retirement paycheck come from each month?
- How much market risk can my retirement income withstand?
- When should I claim Social Security or choose my pension option?
- How might taxes affect my withdrawals over time?
- Do I have enough cash available for near-term needs?
- Am I prepared for healthcare and long-term care costs?
- Are my accounts and beneficiaries aligned with my legacy goals?
Code 2 Retirement™ helps you see how each of these pieces fits together, so every decision is made as part of one coordinated plan.
The Five Locks of Code 2 Retirement™
Growth: Capture Market Potential
Your retirement savings may need to keep working for decades. The Growth lock focuses on pursuing market potential in a way that reflects your time horizon, income needs and comfort with risk.
EFC can help you review asset allocation and diversification so the portion of your portfolio intended for long-term growth works in step with the rest of your plan.
Diversification and asset allocation do not assure a profit or protect against loss.
Income: A Paycheck You Can’t Outlive
Retirement replaces a paycheck with a plan. The Income lock focuses on building a dependable retirement paycheck from Social Security, pensions, retirement accounts, investments and other resources.
We help evaluate claiming decisions, pension options and withdrawal sequencing so essential expenses may be supported throughout a retirement that could last 30 years or more.
Safety: Protect What You’ve Built
A market decline or unexpected event early in retirement can have a lasting impact. The Safety lock focuses on protecting what you have spent years building.
This may include reviewing portfolio risk, insurance coverage, healthcare and long-term care considerations, and the role guaranteed income sources may play in your plan.
Guarantees are based on the claims-paying ability of the issuing insurance company.
Tax Planning: Keep More of What You’ve Saved
What you keep can matter as much as what you earn. The Tax Planning lock looks at how withdrawals, Roth conversions, required minimum distributions and Social Security may interact over your lifetime.
EFC helps identify potential tax considerations for discussion with your qualified tax professional, with the goal of managing your lifetime tax burden.
EFC does not provide legal or tax advice.
Cash: Liquidity for Life’s Needs
Liquidity gives you flexibility. The Cash lock focuses on maintaining appropriate reserves for short-term needs, emergencies and planned expenses.
Having cash available may reduce the need to sell investments during a market decline and help your plan stay on course when the unexpected happens.
Who Is Code 2 Retirement™ For?
The framework may be appropriate for:
- Individuals and families within ten years of retirement
- Recent retirees who want a coordinated income strategy
- Nurses, doctors and healthcare professionals
- Firefighters and law enforcement officers
- Federal employees with FERS, TSP or CSRS benefits
- Anyone who wants a complete retirement plan, not just a portfolio
Your retirement code is unique to you. It reflects your goals, your timeline and the life you want to live after your working years.
How Code 2 Retirement™ Works
We start with a discovery conversation to understand your story, goals and concerns. Next, we organize your accounts, benefits and income sources and complete a retirement readiness review to identify potential gaps across all five locks.
When an advisory relationship is established, we develop a personalized financial blueprint and explain each recommendation, including its purpose, risks and costs, before anything is implemented. Your plan is then reviewed as markets, tax laws and your life change.