Bob is a 62 year-old lawyer and Sally, a 57 year-old mid-level manager.
Challenge:
- Can Bob and Sally retire now or do they need to wait and for how long?
- How much can they safely withdraw from they portfolio each year and not risk running out of money?
Financial Issues:
- Bob wants to work part-time for a while longer; Sally wants to stop work now.
- They have approximately $750,000 outside their retirement plans. Should they liquidate this money first?
- Bob can take Social Security now, but will get more if he waits. What should he do?
- Sally won’t be eligible for Social Security for a few years. Can she afford to retire now?
- Sally has almost a million dollars in a Profit Sharing Plan from her firm. What should she do with the assets when she retires?
- Bob is a partner in his law firm, and will be able to liquidate his partnership interest under a buy-sell agreement with his partners. He needs advice on how to invest the money.
Lifestyle Issues:
- Both Bob and Sally are healthy and active, and want to travel and spend time with their children and grandchildren.
- They have a four-bedroom house in suburban Chicago, but their children live in Atlanta, Georgia and Phoenix, Arizona. Should they sell the big house and move closer to the kids?
- Bob has always wanted to get a pilot’s license. If he takes lessons now, how will that impact his insurability?
- Sally wants to study art history, maybe even get a degree in it. Can she fund her classes with tax-advantaged money?
WrapManager is available to assist in discussing options and helping to build a portfolio based on the individual needs of the client. We can work with them to create an Envision plan and evaluate their cash flow needs against their available assets under both the preferred and acceptable scenarios. We can then run a projection of the probability that their money will reach their goals under each scenario to help them better understand their situation and options.
This case study represents hypothetical situations as examples only. Accordingly, no client or prospective client should assume that solutions presented (or any component thereof) serve as the receipt of, or a substitute for, personalized advice from WrapManager, or any other investment professional. Not every client of WrapManager chooses to participate in all of the steps available and each individual client situation is different.