Pre-Retirement

Clients generally approach us during this chapter because they have mastered the earn-and-save chapter of life and now have new concerns.

• Nearly all pre-retirement clients want to know if they have saved enough.
• The second most frequent reason is to maximize estate, tax, and investment opportunities and to consolidate and simplify account holdings.
• The third most common reason pre-retirees reach out to us is because they received an inheritance and/or they are being offered a retirement package from their employer.

This stage is often characterized by the culmination of a lifetime of savings, investments, and career achievements. However, it also brings significant financial and personal decisions that can have long-lasting impacts on a client’s retirement lifestyle. Whether it’s determining the right time to retire, selecting the best strategies for generating retirement income or planning for healthcare needs, the decisions to be made are critical.

James and Charlotte

James (57) and Charlotte (56) are professionals in the oil and gas industry who relocated to Houston as soon as they could. They own multiple properties across different states and are planning to retire in the Pacific Northwest, where they envision a peaceful life with their four-legged companions. Over the years, market fluctuations have significantly boosted their investment portfolios, making their financial situation more complex.

Initially, James took pleasure in managing their investments, but with retirement on the horizon, the stakes are higher, and he is eager to transfer some of that responsibility to a professional. Both James and Charlotte agree that working for a few more years could enhance their financial security; however, they also want to ensure they maximize their non-financial life during this crucial period.

Needs

• Empowerment Through Strategy: They require a strategy that empowers both partners, giving them confidence in their financial future.
• Corporate Benefits Maximization: Advice on how to fully utilize their complex corporate benefits package.
• Early Retirement Planning: Guidance on how to retire or semi-retire before reaching the age of 59.5.
• Income Strategy: Strategies to convert their investment nest egg into sustainable retirement income.
• CPA Consultation: Access to a CPA who can align their current assets with their long-term retirement plans.
• Estate Planning and Long-Term Care: Introduction to estate planning and long-term care solutions to ensure they are well-prepared for the future.

Solution: Planning, Advice, Asset Management (PAAM)

• Goals-Based Financial Plan: We’ll create a customized financial plan using Money Guide Pro (MGP) software, designed to align with James and Charlotte’s retirement goals. This plan will focus on maximizing their corporate benefits, developing a sustainable retirement income strategy, and planning for their desired lifestyle in the Pacific Northwest.
• Psychometric Risk Assessment: Utilizing Datapoints software, we’ll conduct a psychometric risk assessment to uncover and understand James and Charlotte's unique risk profiles, spending and saving behaviors, and underlying money scripts. This assessment will guide our approach to managing their investments and help them make informed decisions.
• Ongoing Meetings: We’ll schedule regular meetings to discuss the implementation of their asset management strategy, and provide referrals to a CPA for detailed tax planning, as well as an estate planner for wills, power of attorney (POA), and long-term care (LTC) options. These meetings will ensure that all aspects of their financial life are aligned with their retirement goals.
• Annual Reviews: Each year, we will review their financial plan and assess progress toward their goals. This includes evaluating investment allocation, performance, and making necessary adjustments. We’ll also analyze their spending, saving, and investment strategies to enhance their probability of achieving long-term success.

James and Charlotte are at a critical juncture in their lives, where they need to balance the desire to maximize their financial resources with the importance of enjoying their non-financial life.

Our ongoing support will ensure they are well-prepared to transition into retirement, allowing them to focus on the life they’ve worked so hard to build.