Both Ryan and Emily are very active and the outdoors are their haven. Chasing wonder makes them tick. They exercise daily, develop healthy eating habits, and spend lots of time outdoors by skiing frequently. As a result of their active lifestyles, they could live quite a long time in retirement, so it is vital to prepare their financial situation for that longevity.
Ensure they don't outlive their money and can sustain the lifestyle they have worked so hard for.
Ryan has already retired from an executive role at a previous company, and as a result, he has received stock options. However, he has started a new business venture that consistently provides him with a very high income and a partnership role. The business has a strong probability of being sold in the future for a large windfall which could have tax ramifications.
Emily has been a high school counselor for over thirty years. Along with her current job, she is already receiving a pension from another school system, but she is still working and will have an additional pension once she retires.
The majority of their assets are within an IRA that came from a large 401k, which was established at Ryan’s former employer.
Their actual retirement date is presently unknown; however, we still need to prepare them for required minimum distributions, pension income, and proper income supplementation. We also need to decide how they will take social security benefits, as there may be reductions that need to be evaluated.
Distribution of large amounts from tax deferred accounts especially over a long lifetime
Tax liability in high income years relating to company stock options and stock units
Maximizing the proper pension amount from Emily’s second pension
Making money last for the future so that they can live the way they want
Being as tax efficient as possible and managing proper income strategies
We need to understand specifically how much Ryan and Emily need in income to live the life of their dreams in retirement. This is a cash flow evaluation. Then, we need to manage assets in a way that keeps their costs low and their tax liabilities as low as possible. This could include asset allocation.
We also need to start to weigh all income sources now and set up a plan to maintain it in the future when they begin to take social security.
Additionally, we need to assist in timing the proper social security strategy. This retirement plan can be implemented over one year, but it will take years of evaluations, adaptations, and corrective behaviors when addressing current market conditions.
Brian and Mary have already retired but they are only in their early 50’s. To make things better and more complex, they are very active and healthy. They both loved their careers as fire fighters and Brad may even continue to work in a new role at a new department.
Teri and Jonathan are nearing the retirement finish line and would like to set themselves up to start other businesses.