CASE STUDIES
Gary and Helen:
Minimized Risk and Leaving a Legacy
Goals
Gary and Helen had the same goals as many people preparing to retire. They wanted to make sure they had enough money to live comfortably, protect their assets from taxes, minimize their risk of running out of money, and leave a legacy for their children.
Challenges
The couple had both been working for the same company for many years and had good pensions, but were concerned about their health and how long they would be able to work. Helen had a 401(k) and some other investments, but she didn’t know how to best manage them.
As retirement approached, Gary and Helen were starting to feel like a tidal wave was looming on their horizon.
“How will we make the most of our money? What’s in our best interest for making money on our assets? How will we set up our estate to take care of our children when we pass on?” They didn’t know where to start.
Approach
About a year prior to retiring, a friend of Gary’s invited him to an educational seminar put on by a local financial advisor.
Impressed by his knowledge and his ability to explain complex financial concepts in a clear and understandable way, Gary and Helen had a few conversations with him and ultimately decided to work with him.
Results
Rather than requiring them to move their accounts immediately, he worked directly with Helen’s company to set up the most tax-efficient plan for her deferred compensation, her pension, and even corrected a mistake that had been made in her 401k that would have reduced her income in the long run.
He gave them a complete game plan to retire, even suggesting the specific day to start Medicare and social security.
He alerted them to opportunities they didn’t know they had, like Helen’s eligibility to open a tax-advantaged 457(b) plan for the final years of her career.
They have since placed all their retirement assets under their advisors direction.
They never feel that he’s pushing anything on them, but that he’s simply managing the plan they developed together, and helping them make the best decisions.
Now, Gary and Helen are comfortably retired. Their financial advisor stays in touch with them proactively, keeping them up to date on what they can do to save more on taxes, so they can spend more on life.
