Primary Goal:

To optimize their financial plan and minimize the impact college expenses and taking care of their parents may have on their own goals. 

Background:

Dave and Ellen know that they would like to have the option to retire one day, but their plates are full and lives are too busy to think that far ahead. Their children will head off to college over the next several years and despite having some money saved, aren’t sure how much they can afford to contribute without sacrificing their retirement and other goals. 

Their parents are financially independent, but Dave and Ellen have noticed declines in their health and cognitive abilities, and are concerned about their aging process.

Yet, Dave and Ellen have done a lot of things right, including:

• Saving into their 401(k)s.

• Contributing money into education savings accounts.

• Keeping their debt low and growing the equity in their home.

• Purchasing insurance to protect themselves from certain risks.

The problem is their time and energy are finite at the point in their lives where missed opportunities or mistakes could cost them dearly. They would prefer to delegate to a professional who can optimize their planning efforts. 

Solution:

When seeking help from a financial planner, Dave and Ellen wanted to partner with someone who helped with their entire financial picture, not just their investments. They worked with their planner to put together a comprehensive financial plan that clarified the following: 

• A tax-efficient investment strategy to improve their trajectory toward their goals

• Reduced investment costs

• A reduction in tax liabilities through Roth conversions, charitable giving strategies, and optimizing retirement contributions

• A review of their insurance policies to confirm they have appropriately insured against certain risks without overpaying for unnecessary coverage

• An education funding plan that gives them the peace of mind that they can contribute to their children’s education without sacrificing their own goals

• Developed a plan to care for their parents throughout their aging process and make sure they get the best care possible

Now that they have the peace of mind of having clarity around their money and goals, they can get back to their lives and better enjoy the time they spend with their family and friends and their careers.

Primary Goal: 

To optimize their financial plan to maximize their spending over their lifetimes and pass on assets to their family while reducing taxes along the way.

Background: 

George and Sarah have been thinking about retiring for the last few years and are looking forward to having more time to spend on activities they have put off for years. Their children are independent and have recently started families of their own. 

Sarah’s parents are still with us, but she has had to take time away from work to help take care of them as their health has been declining. Although she doesn’t expect to have to step in financially, she is the child who is local and is determined to help take care of them. She admits she doesn’t know what she doesn’t know and could use some help to make sure her parents receive the best care possible.

They have done a lot of things right, but aren’t sure how to put it all together and find meaningful solutions:

• Have been maxing out their 401(k) contributions since their children graduated college

• Paid down their mortgage and only have a small balance remaining (no other debts)

• Helped to pay for their children’s college education and supported them early in their careers to help them achieve independence

• Purchased Long-Term Care insurance in their 50’s after George’s parents had a health event

• Created a will and basic estate plan when their children were young, but haven’t looked at it in some time

Solution:

George and Sarah want help from a financial planner who has specific expertise in creating a tax-efficient retirement income. They want to get clarity around what they can afford if they retire today and how to convert their assets into a consistent income stream that will last as long as they need it to. 

In addition, they want support around caring for Sarah’s parents. They will have more time to dedicate to their care, but don’t know what resources are available or who they can trust to improve their lives and overall care.

After working with their planner, they have organized their finances and gotten clarity about what retirement will look and feel like:

• Developed a tax-efficient retirement income plan including how to optimize their Social Security benefits

• Have a clear idea of how much they can spend once retired and still accomplish their legacy goals

• Reviewed and updated their estate plan for the next phase of their lives

• Put together a plan for taking care of Sarah’s parents and created a team of professionals to help them get the best care possible

• Reviewed their long-term care policies and created a plan for paying for increased healthcare costs as they age

• Reduced their investment costs and created a tax-efficient strategy

• Reduced their tax liability through Roth conversions, charitable giving strategies and optimizing their retirement income distribution strategy

• After confirming they were on track for retirement, they began saving for the education costs of their grandchildren to lift some of the burden on their family

George and Sarah were able to confidently transition into retirement, take better care of Sarah’s parents, and enjoy many activities they had to put off for years because of the demands of their careers and raising a family.