Julia and Peter
Julia and Peter (ages 62 and 67, respectively) recently retired, but never completed a formal retirement plan. They wonder if they have set aside enough money to do what they planned during retirement, especially with today’s inflation and uncertain markets.
Determine if their retirement savings are invested properly, if they are paying the least possible amount of investment taxes, and if they can generate a reliable income stream in retirement.
How We Helped
Identified a safe withdrawal rate to help protect them from running out of money during retirement. Rebalanced their investment portfolio with goals of minimizing the negative effects of market volatility, persistent inflation, and future taxation.
Early Retirement Success Story
How We Helped a Recently Retired Couple Protect Against Running Out of Money
Julia and Peter (ages 62 and 67, respectively) recently retired from rewarding careers and are excited about their retirement. They look forward to traveling, spending time with their grandchildren and exploring new hobbies.
They have always handled their own investments. They crunched the numbers themselves and think they have enough money to live on – but they wonder if they would benefit from a more formal retirement plan.
They would like to have financial experts review their assumptions and investment portfolio choices. They worry their money won’t last if they mismanage this period of uncertainty, especially if they take market losses so early in their retirement. They also have questions about legacy: how can they leave something to their loved ones, as well as their favorite causes?
Make the most of retirement savings to finance long-term needs and lifelong dreams
Julia and Peter have always been do-it-yourself investors. But now that they’re starting to spend some of their savings, they’re worried they may have missed something and that their informal plan won’t get them through their remaining years.
Their financial goals are to:
- Reconfirm the current value of their assets and review realistic living costs.
- Rebalance their portfolio as needed to help alleviate the effects of inflation and stock market ups and downs.
- Strategize how to pull funds in the future (including RMDs) to minimize investment taxes and maximize longevity.
- Factor in legacy money to leave to their grown children and favorite causes.
- Have a comprehensive plan to address all aspects of their finances to help give them the peace of mind to enjoy their retirement.
Assure the ability of assets to maintain an existing lifestyle throughout retirement
We met with Julia and Peter to understand their available resources and real needs so we could develop a solid financial and investment management plan. As they are knowledgeable investors, we used proprietary modeling to challenge their assumptions. In addition, we:
- Identified and assessed accumulated assets in their investment portfolio.
- Stress-tested portfolio holdings in light of recent market behavior and worked to help maximize growth within their risk profile.
- Sought investment strategies to cover them beyond the average life expectancy because of their general good health.
- Checked the timing and availability of after-tax cash to cover everyday needs, RMDs and charitable contributions.
- Provided a spending plan they could follow mostly on their own, but with support available from the Capital Advantage team as desired.
Julia and Peter now know their hard work over the decades should be able to provide for them throughout their lives because their assets are actively monitored, and their financial plan is adjusted as needed.