Anthony and Linda
Anthony (age 58) is a cardiologist at Kaiser Permanente® whose wife Linda (age 54) is a high school teacher. Now that they’re empty nesters, they are wondering if they might be able to retire early – when Anthony turns 60.
Determine if they have enough to retire early by understanding Anthony’s complex retirement plan – including any implications of retiring at age 60 – and then find the best way to access the funds and integrate them with their other assets.
How We Helped
Completed a thorough review of the available TPMG plan options and ensured that Anthony and Linda understood their choices. A pension analysis identified the ideal pension option for the lifestyle they wanted in retirement. Developed a detailed retirement plan.
Kaiser/TPMG Employees Success Story
How we helped a Kaiser Permanente physician understand his TPMG retirement plan options
Anthony and Linda (ages 58 and 54, respectively) are both professionals. Anthony is a physician and Linda is a teacher. Now that their only child has left for college, they’re ready to focus on their retirement plans. Linda’s mother recently passed away, leaving Linda as executor to settle the estate – something Linda feels underprepared to handle on her own. Anthony and Linda realize that they are fortunate to have two pensions, but worry that their pensions are not enough to cover all of their needs during retirement.
Their investment portfolio includes Anthony’s TPMG Plan 1 pension, Plan 2 company contributions and Plan 3 401(k). Although Anthony believes that he maximized his contributions, he is unsure if there are conversions he can do while still working and doesn’t know how to select the ideal pension option. The couple has also accumulated assets in Linda’s future CalPERS teacher’s pension, and an investment portfolio of stocks and bonds held in a brokerage account. Additionally, Linda has recently inherited an IRA account and a Roth IRA from her mother’s passing. Fortunately, they have covered their daughter’s college costs with a 529 college savings plan.
Make the most of their TPMG retirement plan to retire early and securely
Retiring early has been Anthony’s and Linda’s lifelong dream, but they find Anthony’s TPMG retirement plan difficult to understand. While Linda’s pension is more straightforward, the couple needs help answering one big question: “Do we have enough money to retire in two years?”
Their financial goals are to:
- Find a financial advisor who understands the intricacies of TPMG retirement plan options, CalPERS pensions and Social Security benefits.
- Structure their investment portfolio to help protect and grow their assets.
- Learn the most beneficial way to handle inherited IRA accounts.
- Determine how their assets can generate consistent income to supplement their pensions – without depleting assets too soon.
Clarity on the best TPMG retirement plan options to support the couple’s early retirement goals
We met with Anthony and Linda to understand their financial picture and goals. We then explained how the various alternatives for Anthony’s retirement plan fit in with their early retirement goals. To accomplish those goals, we:
- Ran a pension analysis to determine the best TPMG pension option for Anthony, including the most tax-efficient way for him to access these funds.
- Assessed the impact on Linda’s CalPERS pension of retiring earlier than expected.
- Developed a retirement plan which included all sources of the couple’s income (TPMG Plan 1, 2 and 3 retirement assets, Linda’s CalPERS pension, inherited IRAs, Social Security and draws on investment accounts).
- Defined the steps to consolidate assets and manage all of the couple’s investments under a single investment strategy aimed at producing income and safely growing an inflation-resistant portfolio.
Anthony and Linda now understand that they should have enough money to safely retire early and, if they choose to do so, they know what their long-term cash flow will look like. They have a master plan for managing their investments in a way that focuses on both protecting and growing.
Anthony and Linda feel that they are in good hands. With proactive, regular updates to their plan – and reviews of Capital Advantage’s market outlook and investment strategy – they are on track to retire early.
Disclaimer: Capital Advantage, Inc. is not affiliated, associated, authorized, endorsed by, or in any way officially connected with Kaiser Permanente® or TPMG (The Permanente Medical Group)