Bringing Peace of Mind to Retirement
Clients in their 60s were nearing retirement after successful careers. As long-time investors, they had amassed several million dollars and were preparing for the next chapter in their lives.
The clients designed their financial system around their steady and significant annual pay. They had a simple approach—they spent their salaries and saved the husband’s annual bonus. This approach gave them security and comfort. They gradually built their wealth and didn’t worry much about financial market volatility because it never affected their lifestyle. However, the thought of retiring and being dependent solely upon distributions from their portfolio caused a sudden emotional shift. They worried that investment risk would feel very different in retirement, and they were filled with questions:
- From which accounts should we draw to maximize our annual cash flow and minimize the tax impact?
- How will our plan change during a major stock market decline?
- Do we have some extra money to give to the kids now, when they need it, rather than later in an inheritance?
