CASE STUDIES

Retirement Planning for Executives

The Challenge: Reece is age 63 and married with two children. He is an executive at a technology company and plans on retiring later this year. He wants to make sure that he is financially secure before leaving but lacks the time, interest, and expertise to do so. His questions are many but include….

  • Do I have enough assets to retire and meet my lifetime spending needs?
  • Should I take a lump sum or a pension?
  • When should I take Social Security?
  • How do I coordinate the liquidation of my accounts every year to pay as little tax as possible?
  • Do I have the right health care coverage to protect my assets and income from a future health event?  

The Strategy: After multiple discovery meetings, Reece decides to work with Tushingham Wealth Strategies and utilize their “Personal CFO” retirement service. A complete review of his finances is conducted, and then a team of professionals is assembled to address all of Reece’s planning needs.

  • A Social Security optimization test is done to ensure that Reece and his wife claim their benefits at the proper time. By coordinate the claiming strategies they potentially garner an additional $60,000 in lifetime benefits.       
  • Reece and his family will need health insurance before he is eligible for Medicare at age 65. Tushingham Wealth Strategies helps find a comprehensive policy to bridge the gap and develop a plan to defray the costs.    
  • Reece’s “Personal CFO” develops a retirement income strategy that coordinates the liquidation of his accounts. This provides Reece’s family with the monthly income they need and minimizes their tax liability.  The strategy is reviewed on an annual basis.        
  • Since Reece is not taking Social Security or IRA distributions yet he is in a lower tax bracket than normal. Strategies are developed to take advantage of this “window”, pay taxes today at much lower rates and provide future untaxed cash flow.        

The Results: Having a “Personal CFO” by his side has provided Reece with the peace of mind and confidence to retire and enjoy the rest of his life. After his plan is implemented his “Personal CFO” will proactively monitor progress to protect against any potential risks that might derail Reece’s plan. This provides Reece the freedom he has always wanted.

Scenarios presented are for illustration purposes, are not an actual client and may not be typical of all clients. Individual results will vary.

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