Live Life Well.

Financial Planning for Retirees or Soon to Be Retired

Retiring with Confidence - Case Study

Challenge

A married couple wants to retire within 3-5 years while maintaining their current standard of living.

 

The wife is a public school teacher and the husband works on the sales team of a major corporation. Their retirement and investment accounts have reached values that they are no longer comfortable managing without professional advice, especially since they know they will need to count on income from these accounts during their golden years. They also own a house of considerable value, and they would like to sell it and relocate to an area with a lower cost of living, using the proceeds to help defray their expenses in retirement.

 

They consulted EEFG to get help in determining whether their time horizon for retirement was realistic, and to get help managing their investments and income in retirement. 

Solution

We helped evaluate this couple’s goals and provided the help they needed to manage their assets and income:

  • Guided them through the EEFG four-step planning process.

  • Assisted them with consolidating 401(k) plans from the husband’s  previous employers into a self-directed rollover IRA.

  • Reviewed the husband’s stock options and explained the most tax-efficient method of exercising them.

  • Analyzed the options available in the wife’s state-run pension system and helped her select the most appropriate one.

  • Analyzed their Social Security options and recommended the choice that would maximize their future benefits.

  • Showed them how their pension and Social Security income could be combined with income generated from their retirement investment accounts and funds from the sale of their house to yield the income they would need for the retirement lifestyle they wanted.

  • Used the interactive cash flow model to map out the most tax-efficient method of withdrawing income from their various investment accounts.

Future

Our clients now live comfortably in a new city. They have no mortgage, and they are secure in knowing that they will not run out of money in retirement.