Client Facts
- Single - Divorced (married over 10 years)
- Retiring at 65
- Total Brokerage: $180,000
- Traditional IRA: $400,000
- Traditional 401k: $200,000
- Total Roth: $120,000
- Savings: $45,000
- Social Security: $2,800 at 67
- Monthly spending: $5,800 ($70,000/year)
Retirement Goals & Concerns:
- Protect/Preserve Wealth
- Maintain lifestyle
- Avoid large tax hits from RMDs
- Ensure daughter receives a clean, organized estate
- Build a charitable giving plan
What we did…
Cash-flow &Distribution Planning
- Created a tax-efficient withdrawal plan:
- Draw first from taxable accounts.
- Then pull from IRA accounts (after strategic Roth conversions).
- Roth IRAs preserved for later years or legacy.
- Structured an 8-year Roth conversion plan before RMDs begin.
Investment Planning
- Moved her from an 85/15 allocation to a 60/40 allocation until age 70.
- We will shift closer to 75/25 once Social Security begins.
- Shifted which investments she owned in which accounts to increase her portfolio tax efficiency.
- Protected 5 years of income from market swings.
Tax Planning
- Designed an 8-year Roth conversion plan targeting the 22% tax bracket.
- Began donating investment shares rather than cash to her charity.
- Capitalized on tax-loss harvesting in taxable accounts.
Estate Planning
- She got her Will and Power of Attorney documents updated.
- She executed a living trust and transferred all applicable assets into the trust.
- We built a chart outlining all her assets, where they are at, who gets what, etc.
Insurance & Risk Management
- Designed and implemented a plan for long-term to preserve her wealth and legacy.
- Increased her home and auto liability coverage to further protect her wealth and legacy.
- Reviewed her existing life insurance policies and agreed to keep them in-force at least until renewal.