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Primary Goals
Make sure they outlive their income. And maintain a reliable income stream in retirement.
Karl & Nicole have just sold their small business and want to minimize taxes. They also are not sure what to do with their retirement accounts and how to position some of the money from the sale of the business to avoid taxes going forward when they retire.
They want to ensure that their retirement plan not only enables them to maintain the lifestyle they have envisioned but helps them reduce taxes now and in the future. They want decent returns but want to avoid the roller coaster ride the markets sometimes give.
They want to reduce fees and are concerned about all the activity and changes in the account that may be creating these fees. They want to better understand their investments and why they are placed wherever they land.
Reducing taxes, improving investments and creating consistent contributions through retirement is their primary focus.
The Challenge
Karl & Nicole have been avid savers, but they worry how they’re going to access their money.
They have a bunch of different stuff and are wondering if things are where they should be.
They are wondering whether they should keep their Life insurance policy in place now that they are retiring.
Karl is eligible to start a small pension he had from an older employer and needs help selecting from the various options the plan provides. They are confused about life certain and whether they he should be concerned about leaving Nicole the benefit if he passes first.
Their retirement package consists of primarily their 401(k)’s, post-tax accounts as well as some ROTH IRA accounts.
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.
The Approach
It was important to make Karl & Nicole’s retirement planning process easy, enjoyable and stress free.
Once Karl & Nicole 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 identify any potential tax challenges they may soon face
02
Compile all the account information and tax related documents
03
Summarizing all the options available to them along with the tax ramifications
04
Educate them both on the money cycle and pyramid of all the various investment options
05
Establishing new investment accounts better suited to their risk tolerance as well as needs and requirements
06
Strategizing a withdrawal plan to provide them with a tax efficient reliable income stream
Ongoing Maintenance for Karl & Nicole
Karl & Nicole’s retirement plan is reviewed regularly. Most importantly, new tax laws are being monitored each year to ensure they are taking advantage of any opportunities available to them. Additional strategies may be available such as additional ROTH conversions and other legacy planning concerns.
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 the short-term and temporary bumps in the market.
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