Three Common Client Profiles

Approaching Retirement

Sharon is a professional woman, never married, approaching retirement.  She would say that she knows enough about investing to get herself into trouble.  She began working with us during the stock market downturn of 2008, when her confidence was shaken and she decided she wanted a plan of action for reaching her goals.  She contributes to her current employer's 403b plan, as well as a Roth IRA.  She has rolled over and consolidated two former employer's 401ks to an IRA.  Her home is nearly paid off and she is building up an emergency fund at her bank.  When Sharon retires, her only fixed income will be Social Security benefits.  Her other retirement income will be drawn from her investments, so it is important for these to be well-managed and distributed in a tax-efficient way.

Surviving Spouse

Kelsey began working with us when her husband Ryan was still living.  He was retiring from a large corporation and they had questions about his pension options and what to do with his 401k, as well as how to draw income from their investments during retirement.  They had saved well and were ready for an active, comfortable retirement.

Ryan and Kelsey both had a basic understanding of markets, stocks, bonds and mutual funds (which they owned through his 401k). They also owned an annuity.  After retirement, Ryan rolled over his 401k to an IRA. When he reached age 70 1/2 he began drawing his annual required minimum distribution. Ryan had some chronic health problems, but still anticipated he would live many more years. Kelsey was younger and very healthy. When he was in his mid 70's, Ryan suddenly became ill and passed away.  Kelsey remains focused on living a full life, and has children whom she wants to benefit from her estate.

Incorporating an Inheritance

Richards parents are deceased and he inherited substantial assets from them.  Their home was sold for $300,000.  Stocks, mutual funds, savings bonds, and bank accounts totaled another $500,000.  In addition, Richard was the beneficiary of his father's retirement account.

Richard earns a fine salary, enough to support his family, so he does not need to use is inheritance for current income.  He has a mortgage balance remaining on his home and contributes some to his 401k (enough to get the match).  He is eligible to contribute to Roth IRAs but until now could not afford to.

Richards wants help coordinating his inherited assets with his existing mix of investments.  He also has questions about tax implications and other rules related to making changes to or drawing from the inherited accounts.