Approaching Retirement

BILL & SUSAN

CASE STUDY #2

AGES:

55 & 57

PRIMARY GOAL:

Understand his options in moving forward to feel more secure about his future retirement income.

PROFESSION:

Sales Executive

THE OBSTACLE:

Bill has always been the breadwinner as Susan stayed home and took care of their three kids. With the youngest child now finishing up medical school, Bill wants to make sure he is focused on securing their retirement.

He knows that most of this retirement is locked into his employer in the form of a 401k, pension, ESOP, and a restricted stock plan, but he is also one of the higher paid employees and he knows the company could eliminate his position to cut costs.

Bill was told by some friends to plan around a 4% withdrawal rule, but he has no idea how to navigate around that with all the different types of accounts and tax rules.

The obstacle isn't overcoming a bad situation, but in fully understanding their current situation and having a future game plan on how to transition in the future when needed.

So what's the challenge?

  • Figuring out the best approach from a tax perspective in adding and withdrawing from investment accounts

  • Understanding what would happen in the event of a layoff

  • Diversifying away from having as many investments tied into the company

  • Having a game plan to continue medical coverage prior to age 65

Bill isn't boxed into a corner at this time, but he knows that things could change at any time and working on a plan now will give him more options in the future.

THE TEAM:

Bill knew he didn't know enough to feel confident in his future options. He talked with his accountant and the investment professional on the work 401k, but neither of them could help him. He decided to seek help from a financial planner that took his whole financial picture into consideration and understood how to best help him today.

In this situation he will need to have tax accountants and estate planning attorneys involved to best serve him. Because he already had a good accountant, he is happy to jointly collaborate on the plan.

 

 

THE OUTCOME:

When Bill first began thinking about this, he didn't know who to turn to. He had never worked with a financial advisor besides the woman who sold him a whole-life policy back in his 20's that he still regretted. He wanted someone that would help be the guide and explain his options and put his interests their own.

A game plan was put into place for Bill and Susan that offered the following:

  1. A retirement plan that showed how much money they would need overall to fund their future goals.

  2. A breakdown of all their investment accounts and explanation on how to best access them in a tax-efficient manner.

  3. A tax-efficient investment strategy and review for retirement income planning with social security timing.

  4. Estate planning strategies and I walk-through on account transition and protection.

  5. A pension and stock option analysis covering how to maximize returns.

At the end of the process they had multiple options as well as 3, 5, and 10 years goals. Bill and Susan have their financial world organized and a team to support them which the best path for them.

Note: the above case study is hypothetical and does not include an actual Southwestern Investment Group client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Southwestern Investment Group is engaged to provide investment advisory services.

WANT TO LEARN HOW WE CAN HELP YOU WITH YOUR PRE-RETIREMENT PLANNING?

 

 

The first step in our ZIPPER Method multi-step process is a 30-minute Right Fit phone or video consultation. This is a no obligation opportunity to make sure you would be well served at our firm. Quickly schedule your appointment here:

Cremé Wealth Team is a Part of Southwestern Investment Group

© 2021 by Cremé Wealth Team

Raymond James

Southwestern Investment Group

2601 Network Blvd, Ste 101

Frisco, TX 75034

(972) 987-1634

Links are being provided for information purposes only Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of the information regarding any website's users and/or members.

 

Securities offered through Raymond James Financial Services, Inc., member FINRA / SIPC. Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability. Cremé Wealth Team, Southwestern Investment Group, and The Southwestern Co. are not registered broker/dealers and are independent of Raymond James Financial Services. Investment advisory services offered through Southwestern Investment Advisory Services, Inc., an independent registered investment adviser. Raymond James does not provide tax or legal advice. You should discuss these matters with the appropriate professional.