The Portfolio Waterfall^™ Solution

New life is discovered when money flows across your portfolio creating a waterfall effect.

Guard your income from volatile markets

Taking withdrawal when the market is down can wreck your portfolio. Your income will be limited to 3-4% of your portfolio value.

Position your portfolio for more growth opportunities

Your rate of return increases when capital gains, dividends, and interest waterfall into a safe account of income withdrawals.

Reduce the risk of running out of money

Taking income from a stable account that is replenished by your portfolio waterfall reduces the risk of running out of money.

* Past performance may not be indicative of future results.

Annual Income Withdrawal Amounts

Traditional Income Strategies = 3-4%

Portfolio Waterfall™ Income = 6-8%

How the Portfolio Waterfall^™ is Built

The PW strategy is built by investing in Growth, Growth and Income, Non-Traditional Equities, Core Bonds, and Cash Equivalent funds. Seven asset classes are used which gives you the ability to have money flowing into your income account during both bull and bear markets.

Growth

Equity funds that offer consistent capital gains not just the highest 10 year average.

Growth & Income

Equity funds that produce consistent dividends along with a history of capital gains.

Non-Traditional Equities

Non-Correlated assets that produce consistent capital gains or income.

Core Bond

High quality bond holdings with solid income yield with minimal interest rate risk.

Contact us today to learn more about how to implement the Portfolio Waterfall^™ strategy to bring new life to your retirement.

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The Portfolio Waterfall^™ Story

In 2015, Josh Curtis, the founder of Clarity Financial, began searching for a new income model for his clients in retirement. The ideal model would deliver higher potential withdrawal rates, reduce sequence-of-returns risk, and help clients stay invested during volatile markets. He uncovered the Portfolio Waterfall™ concept using the “first principal” thought process – boiling the problem down to its basic principles. In this search, he sought to answer two questions.

First, in what ways should an income-focused portfolio differ from an accumulation-focused portfolio? And, second, why do traditional income withdrawal strategies limit investors to 3-4% of the portfolio value? This process uncovered new efficiencies that allowed an increase in income withdrawals and higher internal returns. The key to this efficiency is to keep money flowing across the portfolio instead of relying on traditional reinvestment theories.

The other key principle is to take income withdrawals only from stable accounts rather than from accounts with variable returns. This shift reduces the investor’s need to liquidate shares in volatile markets and helps the portfolio recover more quickly after market downturns.

Overall, we believe the Portfolio Waterfall™ helps clients understand how their portfolios are built and enables higher income withdrawals. Taken together, these things bring new life to their retirement. Since the discovery of the Portfolio Waterfall™ in 2015, the strategy has been reviewed by several CFA’s and investment analysts at some of the largest firms in the industry.

2935 Pine Lake Road, Suite I Lincoln, NE 68516

Disclosures

Clarity Financial is not affiliated with The Leaders Group, Inc.
Securities offered through The Leaders Group, Inc., Member FINRA/SIPC, 26 West Dry Creek Circle, Suite 800, Littleton, CO 80120 (303) 797-9080.