John & Nancy

Case Study #1: Age 57 and 55

Ready to Retire (Now!)

Primary Goals:

Not run out of money, minimize taxes, optimize retirement investments

Case Studies

The Challenge

John and Nancy have been maxing out their 401k plans for as long they can remember and hoped they could retire in their mid 60’s.

Nancy’s work at the bank has been becoming more and more stressful over the last few years.

She felt a bit of a reprieve when she was able to work from home every day. However, those days are coming to an end with the bank monitoring her daily badge swipes.

She’s burned out and her work is not providing the “purpose” in her life that it once did.

She’s ready to retire as soon as it’s feasible. She’s looking forward to traveling with John as well as spending more time on her hobbies and volunteer work.

They shared what’s on their mind:

  • Are my investments set up properly for retirement?
  • How do we switch from saving money to living off our investments?
  • Do we have enough money to pay for healthcare if we retire before age 65?
  • What can we do to reduce our tax burden in retirement?

John and Nancy felt comfortable managing their finances during their accumulation years but didn’t want to go it alone anymore since the stakes were too high.

The Approach

They decided to pursue professional help from a CERTIFIED FINANCIAL PLANNER™ professional.

They wanted someone who would meet them where they were in their transition to retirement. There was understandable fear around who to trust and anxiousness about revealing personal financial details to a stranger.

Once their goals were clearly spelled out, a comprehensive retirement plan that matched their values and priorities could be made.

The Results

When John and Nancy decided to work with a financial planner, they were worried about more than just their investments.  They wanted guidance with their overall financial situation, especially when it came to dealing with taxes.

A comprehensive plan was put together that met all their needs:

  • Implementation of an investment plan that minimizes taxes
  • Improved investment allocation so they are not taking on more risk than necessary.
  • A strategy to move money into tax free accounts
  • Minimize the amount of taxes owed through charitable giving, Roth conversions, social security timing, and other tax strategies.

With a plan in place, they could now see a clear path to when they could stop working and the exact steps, they needed to take in the meantime to get there.

Note: The above case study is hypothetical and does not involve an actual Calamita 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 Calamita Wealth Management is engaged to provide investment advisory services.