Wealth Protection Advisory
AI Portfolio MRI™ · Indicator

Income sustainability — does the posture match the horizon?

The most common income-sustainability issue in pre-retiree portfolios is a mismatch between stated risk tolerance and actual structural exposure. The AI Portfolio MRI™ surfaces it as a preliminary review area.

Why it matters

Sequence-of-returns risk is sharpest in the years immediately before and after retirement. A portfolio that worked fine in accumulation may be structurally fragile in distribution — particularly if bond weight is low and equity exposure is high relative to the household's drawdown horizon.

How the indicator is computed

The diagnostic combines age, stated risk tolerance, and household-level bond weight. A near-retirement household (60+) with bond exposure under 20% triggers a review-area flag. A conservative-stated household with bond exposure under 30% triggers another. Both adjust the score downward.

What the advisor verifies

Actual income needs, Social Security and pension timing, guaranteed-income layers, tax-bracket management during withdrawal, and whether a more sophisticated bucketing or guardrails strategy fits the household. None of these decisions are made by the diagnostic alone.

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Receive a confidential, preliminary diagnostic across all five indicators. Advisor verification required before any recommendation.

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FAQ

Frequently Asked Questions

What does income sustainability measure?

Whether the portfolio's structure supports the household's drawdown horizon — particularly the relationship between age, risk tolerance, and bond exposure.

Why does age matter?

Because sequence-of-returns risk is sharpest in the years immediately before and after retirement. A portfolio that is fine for a 40-year-old can be structurally fragile for a 65-year-old.

Is this the same as a Monte Carlo projection?

No. The indicator is a screening signal. Full income sustainability work involves Monte Carlo, withdrawal sequencing, Social Security timing, and tax bracket management — all coordinated by the advisor.