1. CREATING RETIREMENT INCOME SECURITY Brightstone C a p i t a l A d v i s o r s

2. THE REALITY Retirees have had to increasingly shoulder the burden of seeing to their own financial well-being in retirement. THE OBJECTIVE To create a comfortable and secure retirement income. THE SOLUTION Multiple risks and trade-offs need a multi-step implementation strategy. RETIREMENT PLANNING REALITY, OBJECTIVES & SOLUTIONS Brightstone C a p i t a l A d v i s o r s

3.  Project income and capital usage ahead for individual retiree in real terms.  Work out Age Pension entitlements.  Set payment duration conservatively.  Set realistic target rate of return.  Measure resultant sustainable income against desired and essential income. STRATEGY STEP ONE – THE RETIREMENT PLAN Brightstone C a p i t a l A d v i s o r s

4.  Income objective and liability driven investment strategies, designing portfolios that deliver:  sustainable income that meets basic needs and capital growth to meet other goals.  Establish cashflow needs.  Focus on minimising retiree risks (longevity, sequence, inflation, market risk).  Strategies must be customised.  Evaluate trade-off of return and certainty.  Active asset allocation strategies.  Flexible implementation through traditional managed funds, ETFs or Super Fund sector options. STRATEGY STEP TWO – IMPROVING THE LEVEL OF SECURITY Brightstone C a p i t a l A d v i s o r s

5.  Tune-up investment strategy periodically for unexpected deviations to expected outcomes.  Analyse and optimise retiree portfolios.  Must be robust and cater for all eventualities  Establish offset contribution and capacity to withstand deviations.  Maintain a dynamic (not static) investment strategy. Tilt growth/defensive sector allocations on market over exuberance. STRATEGY STEP THREE – MONITORING AND MAINTAINING EFFECTIVENESS Brightstone C a p i t a l A d v i s o r s