WHO WE SERVE
Alice and Greg Needed a More
Organized Retirement Playbook
See how we helped them make sense
of their existing resources in retirement
Alice and Greg’s Story
Early 60s, around $5.2 million in investable assets
Alice and Greg are long-time California residents who recently transitioned to retirement a little over a year ago. Now that they’ve successfully made their way to this next chapter, questions about their various accounts, income sources, and other financial factors keep popping up.
They know they’re in good shape with their savings, but they’d like to free up some of their well-earned time in retirement to spend with grandkids—and finally tour the USA in their RV. Alice and Greg brought their questions and concerns about making the most of this next chapter to our firm.
Are we using our retirement resources in the most tax efficient way possible?
What’s the best way to handle our healthcare needs in retirement?
When should we start claiming Social Security?
The Challenge
- They were well-versed in saving for retirement, but lacked the know-how to draw down those assets efficiently, especially since their accounts lived at multiple financial institutions (making them difficult to track).
- Because they were under 65, Alice and Greg needed a way to cover their healthcare costs before Medicare kicked in. They were also concerned about transitioning to Medicare.
- They were happy to stay involved and informed about their finances, but wanted to offload as much of the heavy lifting as they could (including coordinating with other professionals).
- Now that they were living in retirement, they were more worried than ever about the impact a sudden market downturn would have on their portfolio.
- Their out-of-date estate plan was last updated 12 years ago. They’ve since moved and welcomed several grandchildren.
Once we understood Greg and Alice’s top questions and concerns, the goal was to ensure they felt comfortable with the next steps. We helped them get organized in retirement by:
- Conducting a current-year tax projection to identify potential tax-reduction opportunities and avoid as many surprises as possible come tax time
- Adjusting their investment strategy and portfolio makeup (including stocks, bonds, and cash) to help manage market downturns
- Identifying opportunities to simplify and consolidate accounts
- Developing a thoughtful Social Security claiming strategy based on their other income sources (including a pension payout)
- Exploring ways to keep taxable income low enough to qualify them for a subsidized marketplace health plan (meaning premiums can drop significantly)
- Working with estate planning attorney to help them reduce the headaches of updating their estate plan
Alice and Greg’s Results
With our advisors at the helm, the goal was to address Alice and Greg’s questions head-on, while bringing a sense of order and efficiency to their retirement resources. Since we’re able to coordinate with their CPA, insurance agents, and estate planning attorney, we wanted the couple to feel less weighed down by the burden of managing their finances, and more empowered to spend retirement doing what they always dreamed of.
By providing ongoing oversight and guidance in retirement, we’ve explored strategies to help:
- Live comfortably off their retirement savings without paying more in taxes than necessary.
- Build a legacy plan, which included helping their children with homebuying and establishing college funds for the grandkids, as well as charitable donations
- Cover their healthcare costs prior to Medicare eligibility, while minimizing the impact of IRMAA (Medicare surcharge) once they did turn 65
- Preserve their portfolio through various market and economic conditions, including high inflation and volatility
- Manage a sizable inheritance tax-efficiently, which the couple received after Alice’s parents’ passed
This is a hypothetical case study for illustrative purposes only and should not be construed as a recommendation.
It may not be representative of your experience.