Carol
CASE STUDY 03 : AGE 64
Nearing Retirement
Primary Goals:
Consolidate investment accounts, mitigate taxes, create a reliable retirement income stream.
Having amassed wealth over the years as a government contractor, Carol started contemplating retirement.
Her diverse portfolio includes 403(B) from her employer and multiple brokerage accounts.With three adult children (one still in college) and two grandchildren, Carol leads a modest lifestyle, owns her home, and eagerly anticipates spending more time with her family during retirement.
The Obstacle
Carol felt fairly confident that she had sufficient resources to retire but also desired to leave a legacy for her children and grandchildren.
She yearned for a robust plan that would allow her to retire with assurance, knowing she could fulfill these aspirations.
Carol had more questions than answers:
- How should she consolidate her retirement funds?
- In what were her funds invested?
- What were the tax implications of selling her stock options?
- Did she have adequate finances for healthcare, particularly if retiring before 65?
- How could she transition from working and saving to living off her investments?
Carol recognized that seeking professional financial guidance was the optimal choice to ease her concerns and craft a plan that truly suited her family.
The Process
Carol's initial step was to consult with someone who would genuinely listen to her questions and apprehensions. She sought understanding rather than a sales pitch. Retirement transitions often evoke a blend of exhilaration and unease.
After documenting her objectives, a tailored retirement plan that aligned with her values and priorities was devised.
The Resolution
Collaborating with her tax expert, Carol managed to:
- Set a retirement timeline that factored in future financial changes (Social Security & Medicare)
- Organize her assets to ensure she had enough funds to support her most important goals
- Minimize potential taxes by systematically selling her stock options
- Optimize her savings during her remaining employment years
- Generate an income stream to finance the initial years of retirement before Medicare and Social Security commenced
With a solid plan in place, Carol regained a sense of purpose and confidence in her remaining working years.
In the near future, she will be able to wholeheartedly embrace retirement and her cherished role as a grandparent.
By following her customized financial plan, Carol can now focus on making the most of her pre-retirement years and look forward to the adventures ahead.
She can prioritize spending quality time with her children and grandchildren, feeling confident that her financial future is secure and well-organized
She can prioritize spending quality time with her children and grandchildren, knowing that her financial future is secure and well-organized.
As tax laws and economic conditions change, Carol can rest assured that her financial advisor will help her seize new opportunities and adjust her strategies accordingly. Now, with clarity and a renewed sense of direction, Carol can fully engage in life's precious moments, build lasting memories with her loved ones, and create the legacy she envisions for her family.
NOTE: THE ABOVE CASE STUDY IS HYPOTHETICAL AND DOES NOT INVOLVE AN ACTUAL DEFINE FINANCIAL 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 DEFINE FINANCIAL IS ENGAGED TO PROVIDE INVESTMENT ADVISORY SERVICES.