Over the years you have worked hard, saved, and invested. Now, as you look ahead to the next phase of life, you face a new set of questions and financial decisions.
As retirement nears, you want to make sure you have enough money to retire with the lifestyle you envision. You also want to know how to turn your investments and savings into a reliable “paycheck” in retirement while minimizing the amount that goes to the IRS.
Other questions, such as how to navigate health care during retirement, when to claim Social Security, and how your investment strategy should change as you approach retirement, might sit in the back of your mind as well.
We answer these questions and put your mind at ease by helping you figure out if you have enough money to retire, understanding what retirement could look like, and putting together an overall plan to guide you through the transition while making sure your money then lasts throughout retirement.
Things We Help With
- Making sure you have enough money to retire when you want and with the lifestyle you envision
- A tax-efficient withdrawal plan to convert your investments and savings into a monthly “paycheck”
- Consolidating and managing your various retirement accounts (403b, 401a, 457b, 401k, IRA, etc.)
- Social Security planning to choose the claiming strategy that’s best for you
- Proactive tax planning strategies to minimize your lifetime tax bill in retirement
- Navigating health care planning decisions both before and after Medicare eligibility
- Putting together a charitable giving strategy that maximizes the tax efficiency of your gifts
- Reviewing and updating your estate plan to make sure you leave the legacy you desire
- Developing a plan to protect against long-term care risk (whether that means buying insurance or self-insuring)
- Analyzing pension options (including whether to choose a lump sum payout or an annuity payment)
Resources for Preparing for Retirement
Featured Case Study
NEARING RETIREMENT
Emily has been a physician for many years, while Chris is a professor at the local university. Both have had long and fulfilling careers, but now they’re ready for the next phase. The problem is, they don’t know when retirement could happen or what it could look like.
Note: This case study is hypothetical and does not involve an actual MD Wealth Management client.
Case Study
Nearing Retirement
CHRIS & EMILY
AGE: 61 & 59
The Situation
Emily has been a physician for many years, while Chris is a professor at the local university. Both have had long and fulfilling careers, but now they’re ready for the next phase. The problem is, they don’t know when retirement could happen or what it could look like.
Chris and Emily have many different investment accounts (403bs, 457bs, Roth IRAs, brokerage accounts) but aren’t sure how to convert these into a “paycheck” once they retire. They also don’t know what size paycheck their accounts can reliably provide each year, or what’s the best way to withdraw from their various accounts in a way that minimizes taxes.
Chris and Emily know they’re eligible for Social Security at 62 but are debating whether to wait to start collecting it, since colleagues have told them that’s the best approach. Chris and Emily also understand that they’ll be eligible for Medicare at age 65, but they don’t have a plan for health insurance prior to age 65 and are unsure of the cost.
The couple feels like they’ve done a decent job with investing over the years, but they also know that it’s different when you switch from contributing to your portfolio to withdrawing from it, and they aren’t sure exactly how they should invest once they reach that point.
While Chris and Emily have gotten by on their own up to this point, they realize how much things change with retirement and they want an expert to help them make strategic decisions with their money. What they want most is someone who can give them a “plan” that allows them to confidently retire with the lifestyle they envision and the peace of mind that they’ll never run out of money in retirement.
The Approach
Chris and Emily came to us because they liked our holistic approach to retirement planning, particularly our emphasis on tax planning and minimizing their lifetime tax bill. They were concerned about more than just their investments and appreciated our focus on optimizing their entire financial picture.
We wanted to help Chris and Emily understand their options for retirement while making the process as easy as possible. They used our complimentary 3-Step Process to evaluate our firm.
Through this process, we showed them that they confidently retire a year from now, something they were excited about. We also developed a clear plan for helping them manage their financial life to, and through, their retirement transition.
The Results
The plan we helped Chris and Emily develop and execute met all their needs:
- Consolidated their investment accounts in one place to manage them on their behalf
- A tax-efficient withdrawal plan to convert their investments into a monthly “paycheck”
- A Social Security claiming strategy that maximizes their lifetime benefit
- An investment portfolio tailored to their retirement goals and spending needs
- A plan for handling health insurance to and through the transition to Medicare at age 65
- Proactive tax strategies to minimize their lifetime tax bill through Roth conversions
- A charitable giving plan that maximizes the tax benefit of their gifts
- A clear blueprint for how to fund any potential long-term care needs
We also gave them access to our secure client portal, helping them consolidate and organize the many accounts and moving parts of their financial life in one place.
Today, Chris and Emily are living their ideal retirement. They travel regularly, spend time with their grandchildren, and pursue hobbies and interests they had put off for years.
They have the confidence of knowing their retirement lifestyle is sustainable, and the peace of mind that comes with having a professional proactively monitoring their financial plan so they can relax and enjoy life on their terms, without worrying about finances.
Note: This case study is hypothetical and does not involve an actual MD Wealth Management client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if MD Wealth Management is engaged to provide investment advisory services.