Planning to Retire with Confidence
Meet Kevin and Jane. They’ve led a simple life — no children, no debt, the same jobs for decades, and the same modest home they purchased years ago. They’ve always lived below their means and never considered themselves “wealthy.” Even in the final stretch of their careers, their combined income was just over $100,000 a year.
But there was one thing they did exceptionally well: they started contributing to their 401(k)s early, accumulating nearly $1,000,000. Now, in their mid-60s and thinking seriously about retirement, their nest egg had grown to the point where they could start planning the next chapter.
At the same time, Kevin’s company offered a one-time opportunity to take his pension as a lump sum — and they had questions. They also needed guidance on Social Security timing, Medicare, and how to structure their investments for both stability and long-term growth. We began with a comprehensive pre- and post-retirement income plan to ensure they could maintain their current lifestyle — with a little extra for “mad money” like travel and home upgrades. While they were inclined to take a large lump sum withdrawal for renovations, we showed them how that could trigger a significant tax bill and suggested a more tax-efficient way to fund those projects.
Beyond retirement income planning, we connected them with a local estate attorney to create wills and other essential documents. We also introduced them to a trusted property and casualty insurance partner who helped improve their coverage while lowering premiums.
From an investment management standpoint, we built a portfolio using a blend of low-cost index and actively managed mutual funds and ETFs, with FDIC-insured CDs and other fixed-income investments — balancing their need for steady income with protection against inflation. They have the confidence that their advisor will continue to monitor and manage their portfolio — and as the portfolio does better, the advisor does better, aligning everyone’s interests. Importantly, all of this was done under a flat-fee fiduciary arrangement, avoiding the conflicts of commission-based products.
Kevin and Jane began this process with a lot of apprehension, nervousness, and unanswered questions. By the end, they had clarity, confidence, and a clear roadmap to enjoy their retirement.
