Case Study – Nearing Retirement

Consolidate investment accounts, mitigate taxes, create a reliable retirement income stream.
After accumulating wealth throughout the years as a biotech executive, Carol began thinking about retirement. She currently holds a variety of investment accounts, including 401ks from her employers, stock options, an ESPP, and multiple brokerage accounts.
She has three adult children (one still in college) and two grandkids. Carol lives modestly, owns her home, and looks forward to spending more time with family in retirement.

THE CHALLENGES:

Carol was pretty sure she had enough to retire but also hoped she could leave a legacy for her kids and grandkids.
She craved a better plan that would allow her to retire confidently knowing she was equipped to meet these goals

Carol had more questions than answers:

• How do I consolidate retirement funds?
• What is my money invested in?
• What are the tax implications of selling my stock options?
• Do I have enough money to pay for healthcare, especially if I retire before 65?
• How do I switch gears from working and saving money to living off my investments?

She knew seeking professional financial help was the right choice to ease her mind and create a plan that truly worked for her family.

THE APPROACH:

The first step for Carol was to sit down with someone who would actually listen to her questions and concerns. She wanted to be heard and not sold to.
There is an understandable mixture of excitement and uncertainty when it comes to a retirement transition.
Once her goals were clearly documented, a personalized retirement plan that aligned with her values and priorities could be created.

THE RESULTS:

In collaboration with her tax professional, Carol was able to:

• Establish a retirement timeline that included future financial changes (social security & medicare)
• Organize her assets so she knows she has enough money to fund what matters most
• Reduce potential taxes through the systematic sale of her stock options
• Maximize the effectiveness of her savings during her remaining working years
• Create an income stream to fund the first few years of retirement before Medicare and Social Security begin

With a plan in place, Carol is able to bring back a sense of purpose and confidence to her remaining working years. In the near future, she will be able to fully embrace retirement and her role as a grandparent.