Retired Tom 67 and Karen 62

Background

Tom and Karen recently retired from their successful careers and have a lot of plans for how they want to spend their retirement. They have worked hard to save for retirement and have built a substantial nest egg. However, they are now faced with the challenge of making sure their savings last throughout their retirement years. They want to ensure that their retirement plan not only enables the lifestyle they have envisioned but that they have a plan to make sure they never run out of money. Reducing taxes, improving investments, and creating a reliable income stream in retirement is their priority.

Challenge

Tom and Karen have a number of assets including  401(k)s, IRAs, stock options and a pension. They are not sure how to access these funds and need advice on the best investment options available to them. They also want to minimize their tax liability and ensure their investments are diversified. Tom and Karen's ultimate goal is to make sure that their money will outlive them while facilitating the comfortable lifestyle they have planned for.

Approach

To help Tom and Karen with their retirement planning, the first step was to gather all the information about their assets and liabilities. It was important to work with Tom and Karen's CPA to identify any potential tax challenges they may face. The retirement process had many steps including:

• Strategies for accessing their retirement savings in a tax-efficient manner
• Investment options that were tailored to their risk tolerance and long-term goals
• A withdrawal plan to provide them with a reliable income stream
• Regular reviews and adjustments to their plan as their needs and goals change over time

Results

The solutions adopted by Tom and Karen helped them in many ways:

• They were able to reduce taxes now and in the future
• Their investments were diversified and tailored to their risk tolerance
• They had a reliable income stream that they could not outlive
• They had peace of mind knowing that their financial plan is sustainable and that they can relax and enjoy their retirement

Today, Tom and Karen are enjoying their retirement. They have traveled to several countries, purchased a second home, and are actively involved in their community. They have the confidence of knowing that their financial plan is sustainable and that they can relax and enjoy life on their terms. Tom and Karen's retirement plan and investment strategy are reviewed regularly. Most importantly, Tom and Karen feel like they have a partner that will keep them up to date on anything that could impact their retirement.

The above case study is hypothetical and does not involve an actual Theorem Wealth Management client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Theorem Wealth Management is engaged to provide investment advisory services.