Bob and Sue, ages 67 and 59

Bob and Sue recently retired from rewarding careers and have lots of plans for the future. They want to make sure their retirement plan not only enables the lifestyle they have envisioned, but also that they have a plan to make sure they never run out of money.

The challenge

Bob devoted 35 years to his company before deciding it was time to move into the next phase of his life. With their children grown, he and his wife, Sue, were looking forward to traveling, golfing, and giving back to their community.

His retirement package included a 401(k), stock options, and a brokerage account. He was hoping to put these assets to work so he and Sue could enjoy a comfortable future filled with all the things they dreamed of doing. He wasn’t quite sure how to access these funds and needed advice on which investment options were available to him.

Bob’s ultimate goal was to make sure their money would outlive them while supporting the comfortable lifestyle they envisioned.

The approach

It was important to make Bob and Sue’s retirement planning process easy, enjoyable, and stress-free. To avoid major surprises, the first step was to identify potential tax challenges they might face. Their retirement planning process involved:

• Compiling all the information Bob needed from his company’s benefits administrator
• Summarizing all the options available to them, along with any corresponding tax ramifications
• Establishing new investment and retirement accounts with proper diversification and balance for their situation
• Strategizing a withdrawal plan to provide them with a reliable income stream regardless of market conditions

Seeing and understanding all their options removed much of their worry. They were able to move forward with their plans, confident that their future was secure.

The results

The solutions Bob and Sue adopted helped them in many ways:

• They were able to reduce taxes now and in the future
• Bob’s retirement savings were protected
• They had the advantage of a predictable stream of income that they could not outlive

Today, Bob and Sue are having the time of their lives. They travel between their home in Washington and their golf course condo in Arizona, and spend time with their grandchildren every chance they get. They have confidence knowing their financial plan is sustainable and that they can relax and enjoy life on their terms.

Bob and Sue’s retirement plan is reviewed regularly. Most importantly, new tax laws are monitored each year to make sure they take advantage of any opportunities available to them.

The above case study is hypothetical and does not involve an actual LifeFocus Financial Advisors 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 LifeFocus Financial Advisors is engaged to provide Investment Advisory Services.