At what point should I use a financial advisor?

This is a good question, and depends on each unique individual with worries, concerns and goals. However, generally speaking, it is a good idea to have a professional advisor when you start saving for retirement and planning for your future. There are many considerations that can save money but also show you the best use of your money for growing your wealth.

Are you a fiduciary advisor, and will you act in my best interests at all times?

We are Fiduciary advisors and therefore adhere to the highest Fiduciary standard of being legally bound to prioritize our client’s “best interests” while at all times acting in good faith. You may assume that all advisors uphold the Fiduciary standard of care, but this is not accurate, as only 12% of financial advisors choose to meet this exalted standard.

What qualifications, credentials, and licenses do you hold?

We hold MBA, CFA & RIA – also college concentration in Economics.

How many years you’ve been practicing?

We have been in the business of professionally advising clients on financial matters for over two decades.

How are you compensated / what is your fee structure?

First, there are no hidden fees or costs. Our compensation is “pure” fee-based, on percent of assets on advisory, which a sliding declining percent fee scale based on assets: https://www.mcapitalmgt.com/fees

What is your investment philosophy / strategy?

We craft financially secure futures by focusing on specific goals: liquidity, sustained growth, guaranteed income, portfolio risk containment, all within the context of the client’s objectives and resources. Since we emphasize that the understanding of risks embedded in a portfolio is central to providing value to our clients, we actively manage and build diverse, multi-asset portfolios to capture long-term positive returns while having resilient portfolios that may help weather market volatility.

Have you worked with clients in situations similar to mine?

We have a very diverse client base with respect to asset sizes, ages, needs, goals, and the type of concerns that led to engaging our advisory services. In short, over the past 20+ years we have most likely worked with a client with similar situations.

What kinds of services do you provide?

Beyond investments — financial planning, tax planning, estate planning, insurance, retirement income, etc.

How will our working relationship work?

Will require at least two meetings a year to review portfolios, financial situation, goals, and your overall financial path? We also frequently communicate via email, phone, and video calls.

Do I need to have a certain asset size for you to work with me?

Typically, we require a minimum of about $250,000 as this is the amount need to properly develop a diversified, multi-asset portfolio. However, if goals are different with just income portfolio, we can accommodate a lower asset amount.

Does it cost money to meet an advisor the first time?

No, we offer a complimentary advisory meeting where we offer guidance, review portfolios and do a mini-financial checkup.

What is the process and how do I make an appointment?

You can email or call our office where we can answer some of your other questions and setup a convenient time for an office appointment. Email us contactus@mcapitalmgt.com or call (805) 965-7955.

Retirement Goals Through Ongoing Financial Planning Services

As a boutique, high-touch wealth management firm, Montecito Capital Management has built its reputation on guiding clients through some of the most pivotal financial transitions of their lives. With decades of expertise, a disciplined investment philosophy, and a commitment to individualized planning, we help clients transform uncertainty into clarity—especially as they approach retirement.

The most frequent question we receive from individuals nearing retirement is whether they can afford to retire, followed closely by what their retirement budget should look like and how to navigate the range of Medicare options. Fortunately, this is precisely the work we specialize in. We provide retirees with clear, data-driven insight into what their financial future is likely to hold as they shift from accumulation to an income-based lifestyle. Beyond designing diversified, retirement-focused income portfolios, we work hands-on with clients to build budgets grounded in their income sources, anticipated expenses, and long-term financial goals.

Complex Challenges Retirees Face

A well-crafted financial plan only creates value when it is executed effectively with periodic reviews. Too often, we see that after a plan is delivered, many recommendations are either delayed, overlooked, or not acted upon at all. In other cases, steps are taken but executed incorrectly, undermining the strategy’s intended benefits.

Financial planning is inherently complex, involving tax considerations, investment decisions, estate strategies, retirement income planning, and risk management. Each element is interconnected, meaning an error—or even a slight misstep—can have ripple effects across the entire plan.

The cost of inaction or incorrect execution can be severe: missed opportunities for tax efficiency, compromised retirement security, or unnecessary exposure to financial risk. That’s why proper follow-through is not just recommended—it is essential. Even the most well-designed strategy can falter without disciplined implementation, timely adjustments, and vigilant oversight. When one’s financial resources, retirement lifestyle, and long-term security are at stake, execution becomes just as critical as the plan itself.

Retirement Portfolios

Your investment returns and current lifestyle costs are interrelated and must be reviewed to accomplish your retirement goals. Every retiree’s financial journey is different, which is why an advisor builds a portfolio that’s personalized to your unique situation. Factors like how much income you’ll need each month, your goals for growing or preserving your financial assets, the size of your nest egg, and even your comfort level with market ups and downs all play a role. The result is a retirement plan designed to support your lifestyle today while keeping an eye on the future.

For some retirees needing income, we create portfolios to generate cash flows in the most effective, efficient ways possible to deliver steady income that meets lifestyle objectives. Retirees benefit from income portfolios that draw on multiple sources of yield and return streams. We also offer reduced advisory rates for retirees living solely on a fixed income, given these portfolios typically don’t have material growth components.

Understanding Sequence Return Risk

The most important risk in your portfolio is time, particularly the decay of opportunities of greater total return or recovery from losses as you move toward the golden years. And that’s where the trouble lies with what is called “sequence return risk. Sequence of return risk refers to the danger of experiencing poor investment returns early in retirement. If your portfolio experiences decline early-on in your retirement, and coincides with you taking retirement income withdrawals, it becomes increasingly difficult to make up that lost ground over time. In other words, when withdrawals are happening at the same time, these early losses can quickly erode a nest egg and increase the likelihood of running out of money. The sequence of returns matters far more during the retirement “distribution phase” than in the “accumulation phase,” because retirees have less time for their portfolios to recover from downturns. This reinforces the rationale to have a competent professional advisor to help mitigate any potential loss while aligning with your return goals.

Importance of Correct Plan Implementation

We have found that following the delivery of a financial plan* often times many of the recommendations do not get implemented for one reason or another. Sometimes recommendations do get implemented, albeit incorrectly. Financial planning can be extremely complex, and because of the severe negative consequences that can result, it is imperative that certain recommendations get implemented correctly. For example, improper beneficiary designations can negate estate intentions, incorrect account titling can trigger unintended tax consequences, and poorly executed investment allocations can alter the portfolio’s risk profile. In short, designing a financial plan is only half the journey. The true impact comes from disciplined, precise, and timely implementation.

Ongoing Monitoring and Adjustments

According to an Allianz study, 92% of Americans working with a financial advisor say that person is helping them reach their financial goals and 86% say their advisor relieves the pressure of trying to plan their family’s financial future by themselves. Financial planning without ongoing monitoring and adjusting is like running a marathon once and believing that you are going to be in great shape for the rest of your life.

Cornerstone of Retirement Planning is Financial Fitness

This service maintains your financial fitness via:

Annual updates to your financial plan*
Close tracking of every detail of your personal financial situation
In-depth reports and task list
Taking you through the investment process (2-3 meetings to teach you about investing)
Periodically checking your asset allocation to ensure that it is within the limits
Access to Web-based retirement planning tools
Implementation of the recommendations within days after engagement
Answers to all of your financial planning-related questions
Important articles, research and commentary about personal finance via e-mail

Evaluating Income Sources in Retirement

Social Security — Get estimates of your retirement, disability, and survivors benefits.
Pensions — Possible inheritances.
Retirement scenario calculations to see if you’re saving enough.
Value of real estate, personal property, antiques, collectibles, business interests.
Annuities — We do not sell annuities / however, we neutrally evaluate them.
Life insurance values, if any.
Income from investments and retirement funds including, stocks, bonds, trusts, real estate.

Retirement Lifestyle & Decision Making

Deciding when and where to retire is one of the most important decisions of our lives.
You are financially prepared, with enough savings to support your lifestyle.
You have a Social Security strategy in place to maximize your benefits.
You have eliminated or significantly reduced debt before leaving the workforce.
You have a clear plan for covering healthcare expenses.
You feel emotionally ready to step away from your career.
You know how you’ll spend your time, whether through hobbies, volunteering, travel, or family.

Retirement isn’t just about leaving a job—it’s about stepping into a new chapter with confidence and purpose. Alternatively, if you’re already retired, you should continue to reassess your situation and be ready to adapt to changing conditions.

Reverse Mortgages Guidance, Pros & Cons

We also advise on reverse mortgages as an option to turn equity into cash while still living and owning your home. However, insofar as the loan products are complex and fraught with the good, the bad and the ugly, this access to home equity might be suitable for those running out of money and want to still own a house, continue to live in the their home and have the house still appreciate as an investment.

More info: https://www.mcapitalmgt.com/blog/the-hidden-wealth-in-your-walls-why-more-retirees-are-turning-to-reverse-mortgages

Tax Considerations in Retirement

There are also unique tax considerations that are unique to retirees. For example, Social Security Income, partial IRA conversion, tax efficiency in allocation, deferment strategies, and more. With tax-qualified retirement plans like 401(k)s and traditional IRAs, contributions are made with pretax dollars. This means you don’t pay taxes when you put the money in; instead, taxes are deferred until withdrawal, often decades later. Earnings and growth within the account are also tax-deferred. Distributions typically begin between ages 59½ and 73, and the amounts you withdraw are taxed as ordinary income at your regular tax rate.

Avoiding Retiree Regrets

Top retiree regret? Not doing it sooner. While postponing retirement may bring financial advantages, many retirees later regret prioritizing money or workplace benefits over personal time. As health and energy naturally decline with age, their ability to fully enjoy retirement often diminishes.

So what can investors do to improve the odds of retiring earlier? Invest more, sooner, avoid high debt, plan early, and build a roadmap with a financial advisor.

Retirement Income Withdrawal Rates

Now let’s discuss retirement income withdrawal rates. Modern financial retirement approaches have recognized the need to smooth withdrawals and use strategies like Guyton/Klinger rules to set outer boundaries. A commonly cited guideline for retirement spending is the 4% rule. The idea is straightforward: in your first year of retirement, withdraw 4% of your total investments. Each year after, adjust that amount for inflation. According to the rule, this approach gives you a strong chance of making your savings last through a 30-year retirement.

No matter how you look at it, one of the biggest mistakes with the 4% rule is assuming it must be followed exactly. Instead, it’s best used as a starting point—a simple guideline for retirement planning. For example, if you want $40,000 in your first year of a 30-year retirement (adjusted annually for inflation), the rule suggests you’d need $1 million saved. Beyond that, however, a personalized spending rate—tailored to your circumstances, investments, and risk tolerance, and updated regularly—is a smarter approach.

Contact us for a complimentary consultation: (805) 965-7955 | Email: ContactUs@McapitalMgt.Com

*Not all clients require comprehensive financial plans as the considerations for such plans are partly determined by current financial assets, future economic standing and the degree of each individual’s existing planning of their own financial affairs. Also, some clients decide to forgo a detailed financial plan and prefer an overview of assets, income, expenses, health & insurance policies to determine their prospective financial stability and retirement timeline.

Financial Planners & Retirement Advisors serving San Luis Obispo County, Santa Barbara County, Ventura County, Los Angeles County & Orange County

Disclaimer: The website provides general information regarding our business along with access to additional investment related information. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. The intent is to provide helpful information, which should NOT be construed as investment advice. We do not guarantee its accuracy, nor completeness, and it is not intended to be the primary basis for investment decisions. We do not make personal investment recommendations to people or entities except to those who have engaged us expressly for the purpose of providing professional investment advisory services. Investing involves risk and possible loss of principal capital. Montecito Capital Management Group’s ADV filing is available online at http://www.adviserinfo.sec.gov and current FORM ADV Part 2, which describes the services offered, fees charged and detailed company information, among other things, is available upon request free of charge. We are limited in our fiduciary capacity by the firm’s non-discretionary client relationship, whereby the client dictates the investment parameters and contractually agrees to accept sole responsibility for their choices.