Scenarios

Client Couple #2

Client Profile: Clients ages husband 64 & wife 59, their son about to graduate from college, and very concerned about having a sustainable retirement. 1) Initially we discovered where they are; 2) helping them envision what retirement would look like, both qualitatively and quantitatively; 3) assessed if there is a gap, and if so how to manage it; 4) discuss what is possible, such as are their investments working for them, is downsizing an option, is there anything they can do to improve their trajectory, what happens if (we have a long-term care health issue, do I need Life Insurance, etc.), taxes, when to take Social Security, etc. After doing the initial assessment, we determined they only had a 44% Probability of Success.

Action Plan: After working on their Comprehensive Financial Plan, we began by addressing her Risk Tolerance & Objectives, and developed an Asset Allocation strategy based on these. We then did a very detailed review of her investment portfolios, both specific to her overall objectives and reviewing each individual position. As a result, she saved significantly on fees, simplified her portfolio, and will likely experience better long-term results.

Results: After discussing many different possibilities, we arrived at a combination approach to their gap challenge over a period of time:

• They are preparing to sell their current home for many reasons…maintenance issues, too large, hassle, etc., and downsize
• He retired, and was able to orchestrate a temporary position for a year at his former employer

· After the above, he began drawing Social Security at his Full Retirement Age

· She continues to work, has good State benefits, including a small pension

• Completely recalibrated their Investment Portfolios – we discovered that not only were the investments expensive, the balance was too conservative based on their Risk Tolerance, Needs and Objectives. Etc.

• As a result of their and our hard work, the above couple’s Probability of Success is now well above 90%!

Client #4

Client Profile: A single Business Owner, age 60, wanting to develop a retirement strategy, and concerned whether they are prepared.

Action Plan: After deciding a Complex Comprehensive Financial Plan was best, we began by finding out where they are. After determining where all her portfolios were (and what was in them), how much they were paying in fees, discussing if and what the valuation of their business may be, discussing possible succession strategies, reviewing Social Security optimization techniques, and much more, we were able to come up with a variety of strategies to ensure they had a sustainable retirement path.

Results:

• Take advantage of the current Real Estate market, and develop a plan to sell one of their properties.
• Plan to move to the property they would like to retire at, and develop a budget to improve the property with a swimming pool, environmental sustainability upgrades, etc.
• By doing the above, she will be able to invest approximately $1,400,000 to provide funding support for their retirement.
• Potentially unlock value from the potential future sale of their business; something they previously assumed had no value. They are working with a business broker to determine a reasonable valuation for planning purposes.
• Move their portfolios to a substantially lower expense environment, and save significantly every year with better performance.
• Provide a retirement path that had a Probability of Success of 100%.

Client Couple #6

Client Profile: A couple ages 49 & 50 that not only invested wisely for many years, but had significant capital gains in their portfolios. They wanted to retire soon.

Action Plan: After deciding a Comprehensive Financial Plan was best, we began by finding out where they are. He is currently in the IT profession, has owned a number of businesses, and she was in the process of retiring. They needed a professional assessment as to whether they could retire soon, determine a strategy for tax-harvesting some of their imbedded capital gains, when to take Social Security, tax strategies on how to take out distributions from their Retirement Plans, planning for Medical Insurance during the gap period of retirement and becoming Medicare eligible, etc.

Results:

• Determining if their portfolios reflected a retirement environment regarding risk. We provided specific advice on reducing risk in their portfolios.
• A strategy to begin harvesting some of the Capital Gains in their portfolios in a way that is tax efficient.
• Reviewing all expenses in their portfolios, and a recommendation of how to save at least $2,400 per year.
• Consolidating their portfolios. This will result in lower fees, more precise allocation strategies, and a likely better performance over time.
• Roth Conversion strategies to convert some of their Qualified Retirement Accounts into Roth IRAs, being able to reduce future taxes due to lesser future Required Minimum Distributions.
• Recommendation of a Social Security strategy boosting their Lifetime Portfolio Assets by over $300,000.
• A clear and sustainable path.
• Tax minimization strategies.
• Begin their portfolios in a substantially lower expense environment, and save significantly every year with better performance.
• Provide a retirement path that had a Probability of Success of 100%.

Client Couple #8

Client Profile: A couple, he a business owner, she a part-time medical professional, ages 41 & 36, children ages 15 & 9. They are struggling to make ends meet (Cash Flow issues), needed a plan to manage their Cash Flow, fund their children’s educations, and be prepared for their future retirement.

Action Plan: After deciding a Financial & Retirement Plan was best, we began by finding out where they are, and utilizing their Client Financial Website. After determining their Income & Living Expenses, where all their portfolios were (and what was in them), how much they were paying in fees, discussing if and what the valuation of their business may be, discussing possible Education strategies, reviewing Social Security optimization techniques, and much more, we were able to come up with a variety of recommendations to ensure they had a sustainable retirement path.

Results:

• Provide them with a Path that will increase their Probability of Success from the current 56% to 96%, including the following strategies:
• Considering maximizing his IRA contributions during his career.
• Extending his retirement age to 70 from 67.
• She will begin working full-time in 5 years when the youngest child is older
• She increases her Retirement 401 (k) contribution to 3%.
• Funding/contribution strategies for 529 Plans for both children
• Reviewed if they were properly insured for a potential Disability Health Event, and recommendations on increasing coverage.
• Review of whether they were properly insured for Life Insurance, and they were.