Ted & Jane
Retired | Age: 65 & 57
- Evaluate retirement readiness
- Organize financial documents
- Optimize transitional affairs
Ted and Jane were interested in looking at their finances with an eye towards retirement. Both of them have good meaningful careers but wanted to know how prepared they were or were not should they determine they might exit their careers and transition into retirement. They had a good relationship with a large private bank but felt they wanted a second opinion to see what additional insights might be derived from an independent financial plan.
Simply put, they wanted to know if they were on track, what they could be missing and if they should be doing more towards financing retirement.
After reviewing their objectives and matching them to their financial documents it was determined that Ted and Jane were on the cusp of meeting their income needs with a high degree of probability for a 30 year retirement. Given Jane’s younger age, we wanted to extend that period for another 10 years. We knew we’d need to focus on a few key things to give Ted and Jane the clarity and confidence they need to pursue a plan to increase the length of their planned retirement. We put together a series of options that included:
- Working for an additional 2 years
- Optimizing their investments and asset location
- Making annual Roth conversions up to a specific threshold
- Reducing their tax burden in future years
- Maximizing Social Security
- Reviewing Medicare options
After working with Ted and Jane for the following 2 years we were able to get them to a position where they are confident that they now have the option and freedom to choose the retirement they want on their schedule and their terms.
In working with their other advisors we further helped them to address their unfunded and underutilized estate documents. We keep lines of communication open with their CPA to make sure we are on top of any changes to the tax code that could impact their situation.
*These are case studies and are for illustrative purposes only. Actual performance and results will vary. These case studies do not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted.