Long Term Planning is Essential

Here we outline a typical situation of helping our clients live well for today and plan meaningful legacies for future generations.

Typical client situation

In this situation, a 62-year old executive and his wife, a 55-year old company employee, are both preparing to retire within six months. In addition to $1.5M in company 401(k) plans, they also had a $500K after-tax investment account, and a $1.5M executive retirement plan from which to draw retirement income.

With an overall net worth of $3.5M and a $1.1M primary residence, they had clearly saved and invested diligently throughout their careers. Even so, they have many questions about how they could best position their assets to reach their retirement goals.

How we can help

We can provide these clients with comprehensive financial planning and collaborative asset management, but also act as a trusted advisor throughout the retirement process. We can guide them through the process of drawing from each asset in the most optimal way and provide specific guidance about what they can continue to spend comfortably. During the initial meeting, we can help the clients answer the following questions:

  • Do we have the asset base to retire?
  • How do we structure and allocate our assets to sustain our income level?
  • With this plan, how much will we have left to pass on to our children?
  • How can we build a plan to maximize our income yet minimize tax exposure?

Using a conservative allocation approach aligned with their risk tolerance, we can ensure $1M of the couple's 401(k) balance can be managed with minimal downside risk while securing a strong income stream.

Our detailed financial plan projection can give these clients a high level of confidence that our conservative strategies would help them preserve their income in line with their spending and estate planning goals. Relying on particular investment products to provide steady income in replacement of the couple's executive retirement plan and deferred compensation income will help maintain an increasing asset base and net worth over our clients' lives, even with conservative investment management approaches.

We can help you make the most of what you have!