Case study

Looking Forward To Retirement

Overview

Mike, 55, and Lisa, 54, are thinking about retirement, but they also want to make sure their two kids, both of whom recently graduated from college, are taken care of for years to come. Mike and Lisa want to retire when Mike turns 60.

Goals

  • Eliminate the stress of planning for retirement
  • Spend less in taxes, now and in the future
  • Enjoy quality time with family and travel in retirement
The challenge

Mike and Lisa want to focus on enjoying retirement, while leaving the details to experienced and trusted professionals.

  • Mike and Lisa have about $2 million each in their 401ks. $250,000 in a joint account, $50,000 in Lisa's Roth IRA.
  • Mike and Lisa have about $2 million in Mike's 401(k), $250,000 in a joint account, $50,000 in Lisa’s Roth IRA, and $25,000 in an unused 529 plan.
  • Lisa has a pension from a former employer but is unsure of the benefit. Mike won’t have a pension.
  • Mike and Lisa are concerned about finding affordable healthcare before they are Medicare eligible.

4 Key Questions

  • Do we have enough money to retire at our desired time?
  • When should we take Social Security?
  • Are we taking too much, or too little, risk in our portfolio?
  • Can we qualify for a healthcare subsidy even though we have a high net worth?
Our approach

Meeting Mike and Lisa where they are to help
them get organized and feel less stressed

Mike and Lisa have prepared a rough estimate of how much he and Lisa will need in retirement, but he doesn’t want to entrust their future to a rough estimate or miss out on opportunities they are unaware of.

Our results

A Personalized Approach That Mike
And Lisa Feel Confident About

  • Result 1
    Mike and Lisa's customized approach, bolsters their retirement savings, reduces lifetime income taxes, and gives them piece of mind.
  • Result 2
    Mike and Lisa have a plan to save in ways that will allow them to take very tax-efficient distributions once they retire, which will have the added benefit of allowing them to qualify for a healthcare subsidy.
  • Result 3
    Mike and Lisa now understand how they can use Roth conversions, timely charitable giving, and Social Security claiming strategies to reduce the taxes they will owe and optimize inflation-adjusted spendable cash.

Note: The above case study is hypothetical and does not involve an actual Approach Retirement client. No portion of the content should be construed by a client or prospective client as a guarantee of a certain result if Approach Retirement is engaged to provide investment advisory services. Each client's situation is unique and will affect the strategies that can be used for that client.

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That Fits Your Life

Approach retirement with confidence and peace.

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It might surprise you to know that suddenly having a lot of free time can be pretty stressful. “In fact, some studies have linked retirement to a decline in health. One ongoing study found that retired people, especially those in the first year of retirement, are about 40 percent more likely to experience a heart attack or stroke than those who keep working.”

We know. Not what you wanted to hear.

However, there are things you can do to better prepare yourself (including your mental health) for your retirement years – and these have an effect on your finances as well.

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