Oak Brook, IL – August 2, 2013 – When Nancy Coutu and John Gajkowski met working for American Express Investment Advisors (now Ameriprise) in the early ‘80s, they recognized in each other a shared code of ethics: “We both wanted to give more value to our clients,” says Coutu. Both were frustrated with being “captive agents,” required to represent the brokerage house first even if other products would better serve their clients. “You can only discuss investments and solutions that the house recommends and makes a profit on,” Gajkowski explains. “Our clients trusted us to tell them what was in their best interests, but we were restricted to products the firm recommended. We wanted to be on the same side of the table as our clients, representing their best interests,” says Coutu. So they broke away from the big brokerage environment to found Money Managers Financial Group in Oak Brook Illinois where they are free to serve their clients holistically, with integrity.

Gajkowski likes to tell people they went into business right when the world was coming to an end. It was 1987, and even the team’s high ideals couldn’t shield them from one of the worst years the stock market had ever seen. October 19^th, 1987 is an infamous date in financial circles, known as “Black Monday,” when stock markets crashed around the world in the steepest drop since the Great Depression. Beginning their business in such a volatile time was a blessing in disguise for Coutu and Gajkowski. They had always believed in diverse portfolios and their clients lost much less in the ‘87 crash as a result. Twenty-one years later, they saw more happy clients relieved to not have lost the hefty sums their friends had in 2008. “Our clients were grateful we didn’t put them in the same stock market environment their friends were in,” says Coutu. The value of diversification is a lesson the team learned from the start, and one that has served them well in this “lost decade.”

Diversifying portfolios properly, while keeping as much money away from market risk as possible, is only one way in which they protect the lifetime retirement incomes of their clients. While the market does present a significant threat to retiree savings, there are more subtle dangers to maintaining their lifestyles: inflation, tax increases, and rising medical expenses. “The probability is that expenses will go up for the rest of their lives. What many retirees don’t understand is that they have to build that into their plans,” says Coutu. Coutu and Gajkowski have developed a system of retirement income planning to stop savings from evaporating from rising costs of living.

Their plans involve strategies laid out in 5 year increments that cover their clients’ lifetimes. The strategy for the first 10 years is to set up investments and holdings that guarantee a predictable income. For years 20 to 30, the products and investments become more aggressive to keep up with inflation and future costs. “We protect the next 10 years, which is number one – that’s huge. Then we build the risk ladder – the 25 year bucket is invested directly in the market, for example,” says Coutu. Time mitigates the risk on the long-term holdings, allowing the market to go through its normal gyrations without putting the retiree’s income at serious risk. However, even the best laid plans need minor alterations now and then. “It’s important that their plan is flexible enough to change with their needs,” says Gajkowski, adding “It’s not just about developing a plan today and forgetting about it; it’s an ongoing series of tests and adjustments.”

Coutu and Gajkowski can’t help comparing the challenges they faced when they began their business in the ‘80s to those retirees face today. “People were looking for then what they’re looking for today: safety,” says Coutu. When markets swing wildly in different directions, retirees have to be careful how they choose to weather the storm. Fortunately, Money Managers Financial Group has some experience staying above water in even the worst economic downpours.

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