CAP Northwest

From Jeremy Russell:

Client forwarded me a pitch last week: Private REIT offering 8.2% current yield. "This seems too good to pass up."

We passed.

Not because it's a scam. We passed because of what it would mean for their specific situation.

$200K proposed investment. Client is 68, retired, $2.1M portfolio. Withdrawing $72K/year.

The pitch emphasized 8.2% yield and monthly distributions. What it didn't emphasize: 5-7 year lockup (they might need liquidity for health issues), distributions aren't guaranteed, and they already own an office building—more real estate doesn't diversify anything.

The real question wasn't "is 8.2% good?" It was "what problem are we solving?"

They don't need more income. They DO need liquidity. Dad's health is declining.

So we moved $200K into intermediate-term municipal bonds yielding 3.8% tax-free. Less exciting. Fully liquid. Actually solved the problem they have.

Good financial advice often sounds boring. That's usually the point.

"When should I start taking Social Security?"

The internet gives you 12 different answers, and they're all technically correct.

The math says: Every year you delay from 62 to 70, your benefit increases by roughly 7-8%. If you live into your mid-80s, delaying usually wins.

But the math doesn't account for your actual life.

One client had a pension that dropped at 65. Delaying Social Security until 70 meant drawing down the portfolio during market volatility.

Another had health concerns and a family history of shorter lifespans. Taking it at 62 meant more total dollars over their actual lifetime.

A third had a spouse 8 years younger with minimal work history. Delaying maximized the survivor benefit, which mattered more than anything else.

The right answer isn't about maximizing a spreadsheet. It's about integrating Social Security into a plan that accounts for pensions, portfolio withdrawals, tax brackets, and real life.