Client Facts
- Married, ages 64 and 64
- $450,000 IRA
- $70,000 Roth
- $230,000 Brokerage.
- Both retiring this year.
Retirement Goals & Concerns:
- Understand spending limit
- Get control of taxes and become more tax efficient
- Decrease volatility
- Roth conversion plan
- Estate planning
- Medicare planning
What we did…
Cash-flow & Distribution Planning
- Outlined exactly how much money they could spend each year.
- Put together a plan to take $30,000 from their IRA and rest from brokerage.
- Linked their bank account and set up automatic distributions.
Investment Planning
- Mapped out their next 5 years of income needs and moved that money to income-based investments.
- Transitioned them from a stock based portfolio to an ETF based portfolio.
- Reduced the overall risk of the portfolio to limit the volatility during retirement.
Tax Planning
- Moved income investments into their IRA to prevent the income from showing up year to year.
- Designed a 9-year Roth conversion plan to pay the taxes on IRA money at lower rates.
- Implemented tax loss but more importantly, tax gain harvesting early in retirement.
Estate Planning
- Referred them to an estate attorney because no estate documents were in place.
- Mapped out all their assets and who the current beneficiaries are.
- Put together an "in case I'm not here" document.
Insurance & Risk Management
- Had them speak with a Medicare specialist to be sure they enroll in the best plan for them.
- Reviewed the plan for handling a long-term care event so we don't get caught off guard.