Retirees

Whether retirement is a few years away, or you’re in it right now – the questions are similar. How should I plan to “pay myself” during retirement? What should I invest in to ensure I have enough for my lifetime? How charitable can I be? How can I reduce my taxes? We enjoy helping clients navigate their new freedom and do things they’re passionate about or have been wanting to do for years.

Case Study:

Vicky and Mike are both excited and nervous about preparing for retirement. They have worked at each of their respective jobs, developed their careers, saved in their 401ks and accumulated savings beyond their retirement plans but they still have many questions like: When should we take social security? How do we give ourselves a paycheck from our investments? How do we invest in volatile markets when we are in retirement? Did we save enough? They plan to do some traveling in retirement and visit their grown children who have moved to different states.

Details

Combined $1.5 million in 401(k) plans
Investment accounts worth $600,000
Mike receives a small pension
$300,000 in cash reserves
They carry a mortgage on their home

Goals

International travel – cruises and guided tours
Visit children and grandchildren in various states
Comfortable in retirement

Advanced Planning Needs

Cash flow analysis: determine retirement expenses
Investment and allocation analysis: they haven’t looked at their allocations in years; don’t know if their investments match their risk tolerance.
Retirement planning: establish a strategy to generate income while remaining invested.

The Solution:

When Vicky and Mike met with CAM they had considered some strategies for retirement income like living off the interest and dividends from their investments, but they realized that may not help them achieve all their goals. CAM asked specific questions to understand everything Vicky and Mike wanted to achieve in retirement. Questions about their family dynamics, fears, dreams and wishes help establish priorities and values. A detailed financial plan was assembled to create a roadmap for Vicky and Mike, which showed them an ideal retirement scenario as well as assuming some not so ideal, what-if scenarios. It’s better to create alternative plans in case the unexpected happens. Clients who have gone through this type of analysis are less likely to be as worried about the day-to-day market volatility.

These are fictional client pictures and profiles that provide case studies that represent unique individual situations and outcomes that have been presented to CAM. Examples are for illustrative purposes only and may not necessarily be replicated.