So You Are Nearing Retirement…
We’d like to introduce you to Mark and Sally.
Mark and Sally haven’t set hard retirement dates like some couples. Their goal: to have a retirement plan that allows them to retire when they want to.
The kids are out of the house and while they enjoy time together, they both have had successful careers and don’t mind the work that they do and the social aspect it provides.
They have saved through their employer plans, separately in IRA’s and Roth IRA’s, and have some taxable (non-retirement) money set aside as well. Their retirement assets total $1 million not including their house.
Mark and Sally weren’t sure where to begin when planning for retirement, and they admit they don’t know what they don’t know.
Their story is a lot like yours.
+ The Primary Goal
Have a financial plan that allows for retirement on their terms.
+ The Challenge
While they both feel like they have saved enough and have been told by other financial advisors that they will be fine, they've never been shown how all the pieces will come together.
They want to know what their options are and what freedom and flexibility they have in making certain decisions.
- Could we both retire today if we wanted to?
- Do we need to work until a certain age?
- Have we saved enough, or do we need to keep saving?
- If we plan on needing money from our investments, how should they be set up?
- We haven't been keeping a budget for the last few years, are we spending too much?
- What do taxes look like in retirement?
- How do we pay for healthcare if we retire early? What's the Obamacare Subsidy Cliff?
- When do we draw Social Security? What are the tradeoffs if we draw at certain times?
+ The Approach
Mark and Sally weren’t sure where to begin, and don't know what they don't know. Plus, they are busy. With work, grandkids, and enjoying time with one another they didn’t feel that trying to solve this puzzle on their own was a good idea.
For these reasons, they pursued professional guidance from a financial planner.
+ The Results
When Mark and Sally hired Macco Financial Group, they were concerned about more than just their investments and returns. They wanted help with their entire plan, especially income planning and taxes.
A comprehensive plan was collaboratively developed that met all their needs:
- A retirement income and tax timeline for the years leading up to and during retirement
- Multiple “what if” scenarios based on retirement at different ages
- Reduction of tax liabilities through charitable giving, Roth conversions, social security timing, and tax bracket management prior to age 65 Medicare eligibility.
- Improved asset allocation to better align with their nearing retirement goals
- A savings strategy while they are still working that provides tax efficiency
- A smart, system based, and sustainable rebalancing strategy
- A tax-efficient investment strategy for all their resources and different account types
They also adopted an easy-to-use Client Scorecard that provides a quick overview of their financial health and where improvements can still be made.
By working with a financial planner, their minds were put at ease.
Mark and Sally now have clarity and focus for their future thanks to a clear financial plan and investment strategy.
They are able to enjoy life, dedicate time to others, and have the choice to retire when the time is right.
We believe that our services are best suited for Near Retirees who have at least $500,000 of retirement assets.
Ready to Get Started with your story?
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*The above case study is hypothetical and does not involve an actual Macco Financial Group 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 any financial advisors at Macco Financial Group are engaged to provide investment advisory services. Diversification and asset allocation do not ensure a profit or protect against a loss. Raymond James and its advisors do not offer tax or legal advice. you should discuss any tax or legal matters with the appropriate professional.