A Married Couple Having Lunch with Friends at Home

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.

Primary Goal

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?

The Goal

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.

The Solution

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.

Please Note: Limitations. The above is a hypothetical scenario not involving an actual Capital Advantage client. The story illustrates the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The scenario is designed to help illustrate how Capital Advantage might provide services to similarly situated clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the above should not be construed as an endorsement of Capital Advantage by any of its past or current clients, nor any assurance that Capital Advantage may be able to help any client achieve the same satisfactory results. To the contrary, there can be no assurance that a client or prospective client will experience a certain level of results or satisfaction if Capital Advantage is engaged, or continues to be engaged, to provide investment advisory services. A copy of our current written disclosure Brochure discussing our advisory services and fees is available on this website.

Are You Managing Your Portfolio Ideally for a Long and Successful Retirement?

Managing your investment portfolio in today’s volatile market is both complex and stressful. Meet with one of our financial advisors for a no-cost, no-obligation analysis of your investment portfolio to be sure it’s tailored to be resilient through the market’s uncertainty, and for the rest of your life.