Success Story
Who:
Bill and Lindsey, ages 62 & 60. Bill manages a remote team in the tech industry. Lindsey has spent most of her career in nursing. They have two children they’ve put through college.
Why:
Bill and Lindsey have worked hard and diligently contributed to their 401(k) plans but don’t know if they’ve saved enough to live the lifestyle they’d like to live in retirement. They have accumulated equity in their home and have done well with their investments.
Between the two of them, they’ve done a great job saving in pretax accounts and accumulated some stock through Bill’s employee stock plan.
While they’ve enjoyed their careers, they want to have a goal in sight so they can begin planning the next stage of life. They enjoy traveling and envision leading an active lifestyle.
Both earn six-figure incomes. Since they are in a high tax bracket, they are concerned that taxes will eat into their retirement savings when they withdraw those funds.
How:
We performed an analysis and projected that they both could retire safely in two years. By delaying social security payments, we were able to 1) guarantee higher income stream payments later in life 2) create a window of 5-6 years with a lower tax bracket, allowing us to convert some taxable assets into tax-free status, reducing their lifetime tax bill by several hundred thousand dollars!
What:
Bill and Lindsay were relieved and now have a plan in place to retire in two years. They spend their free time planning which trips they’d like to take first once they retire.
They have peace of mind knowing how much they can comfortably spend each month without putting their nest egg at risk. They utilize a personal finance website which helps them organize their financial life and gain clarity on where they stand.