Call me today! 304.483.1788 | sam@sambadgley.com
Primary Goals
Make sure they outlive their income. And maintain a reliable income stream in retirement.
Mickey & Minnie want to retire in ten years. They have no idea how much money they will need to be able to retire. They have no idea what their number is to be able to stop working.
They want to ensure that their retirement plan provides enough money to outlive them rather than them outliving their money.
Reducing taxes, improving investments and creating consistency until retirement over the next ten years is their primary focus.
The Challenge
Mickey & Minnie have been avid savers, but they worry they have not saved enough.
They can save significant amounts these last ten years but are not sure where to put these dollars needed to catch up for that retirement day down the road.
Their retirement package consists of primarily their 401(k)’s but are considering other post-tax and ROTH type investments.
They are not sure of the most tax efficient way to access these funds and need some advice on how to make these choices that should be made or prepared for in advance since retirement is down the road.
They wonder how Social Security decisions will affect Minnie since she was mostly a stay-at-home mom. They also want to avoid this tax torpedo they keep hearing about that affects surviving spouses even though they are both in good health today.
The Approach
It was important to make Mickey & Minnie’s retirement planning process easy, enjoyable and stress free.
Once Mickey & Minnie were able to see and understand all their options, they were comfortable moving forward with a plan, confident that they would be well looked after.
01
To avoid any major surprises, the first step was to determine whether they were on track for retirement.
02
Compile all the account information and tax related documents
03
They determined they needed $8,000 per month
04
Their Social Security benefit is going to be $3,500
05
They will then need $4,500 per month from investments
06
The annual amount would then be $54,000 ($4,500 x 12)
07
The sum of capital to produce this amount is 1,200,000
08
$1,200,000 is our number
09
Once we determined their number we needed to see: Where are we now? they have $425,000
10
How many months until retirement? 120
months or ten years
11
How much will we be adding monthly?
$20,000
12
These last three variables allowed us to determine and calculate if we are on track to outlive our money or whether we will need to make adjustments
Ongoing Maintenance for Mickey & Minnie
Mickey & Minnie’s retirement plan is reviewed regularly. Most importantly, their gap is monitored each year to ensure they are staying on track. They are prepared to pivot and make adjustments as things change.
Their portfolio is also being monitored, rebalanced, and designed to avoid unnecessary stock picking or market timing while being cost efficient using passive investing philosophies. They no longer worry about whether they will have enough money and have confidence with their plan.
View more case studies
A Simpler Way to Invest
Get your FREE Book
Receive your own copy of SMART - Retirement Made Simple by Sam Badgley