Planning For Retirement
Robert and Sharon
Age: 55 years old
Occupation: Robert is a Steel Executive, and Sharon is a Homemaker
Annual income: $250k
Assets: 401k profit sharing, RSU’s (restricted stock units) after-tax brokerage account.
Family: Robert and Sharon are married and have three financially independent adult children.
Goals: Robert wants to coordinate the timing of his retirement to not only leave his company in a good spot after his departure but also ensure their savings will be enough to fund and maintain their lifestyle in retirement.
The Challenges
Will Robert and Sharon Outlive their Money?
They are still determining when they can retire and achieve their retirement goals. They don’t want to run out of money in retirement. Our first priority is helping you take care of yourself and your family. We want to learn more about your personal situation, identify your dreams and goals, and understand your tolerance for risk. Long-term relationships that encourage open and honest communication have been the cornerstone of my foundation of success.
How should they both manage Social Security and Healthcare?
They need to know when, between age 62 and 70, they should file for Social Security. They also don’t know what health insurance coverage they should get if they retire before age 65 when Medicare is available.
What should they do with all of that company stock?
Robert has accrued a lot of company stock over the years. How much company stock should they keep, and how much should they sell? They are also concerned about their tax bill.
How should they invest?
Robert and Sharon have a considerable nest egg but need to be more confident about protecting what they have accumulated, getting the income they need to live off, and keeping their investments ahead of inflation.
The Jessup Wealth Management Approach
Comprehensive Financial Planning:
Retirement Timing: We help Robert and Sharon determine the optimal retirement date by analyzing their savings, expenses, and desired retirement lifestyle.
Income Planning: Develop a plan that ensures they have enough income throughout their retirement years without depleting their savings.
Investment Management:
Portfolio Design: Create a diversified investment portfolio tailored to their risk tolerance, aiming to generate steady income and long-term growth.
Tax-Efficient Strategies: Provide guidance on managing RSUs and other assets to minimize tax liabilities.
Social Security and Healthcare Planning:
Filing Strategy: Advise on the optimal time to file for Social Security to maximize benefits.
Healthcare Coverage: Help them find cost-effective health insurance options to cover the gap before Medicare eligibility.
Estate and Legacy Planning:
Wealth Preservation: Ensure their estate plan reflects their wishes and provides for their children.
Legacy Planning: Implement strategies to efficiently pass their wealth to the next generation while minimizing estate taxes.
Conclusion
At Jessup Wealth Management, we specialize in helping clients like Robert and Sharon navigate the complexities of retirement planning. With extensive experience managing substantial assets and providing personalized financial strategies, our firm is well-equipped to address concerns about outliving retirement savings, optimizing Social Security and healthcare benefits, and managing significant company stock holdings. Our comprehensive approach includes detailed financial planning, investment management, tax-efficient strategies, and estate planning, ensuring our clients can retire confidently with a secure and well-managed financial future.
*Disclaimer: The above case studies are hypothetical in nature. They do not directly represent Jessup Wealth Management clients, nor do they guarantee specific results.