Jeff & Kate

Case Study #3: Age 66 and 65

Retiring In Less Than a Year

Primary Goals:

Establish a reliable income stream, minimize taxes, investment positioning

Case Studies

Jeff, a medical professional, and Kate, a project manager at a bank, are aiming to retire within a year.

The Challenge

Jeff and Kate’s current financial advisor is compensated through commissions, and Jeff is beginning to doubt the advisor’s approach, feeling too focused on investments without considering the bigger picture as they approach retirement.

On the other hand, Kate avoids risks due to her conservative financial upbringing, preferring CDs and savings over stocks.

They believe they have enough savings for retirement but struggle with transitioning from a paycheck to living off investments.

They also wonder about Social Security timing and the impact of starting early or late. With their retirement date quickly approaching, they have more questions than answers:

  • Should we keep our current investments?
  • When should we each begin taking Social Security?
  • How do we generate income from our savings?
  • How much do we set aside for taxes?

The Approach

It was important to bring clarity and confidence to Jeff and Kate’s decision to retire within the next 12 months. They needed a step-by-step plan that balanced the big picture with the intricate details, empowering them to move forward with confidence.

The retirement planning process included the following:

  1. Conducting an in-depth review of Jeff and Kate’s current financial situation including assets, liabilities, expenses, and investment portfolio.
  2. Creating a comprehensive retirement analysis, pinpointing the minimal amount of investment risk needed to achieve their goals and not run out of money.
  3. Customized retirement income plan outlining how to transition from a “paycheck” to living off investments and maximizing social security.
  4. Tax projections and strategies for minimizing taxes throughout retirement.

The Results

In collaboration with their new financial planner, Jeff and Kate successfully transitioned into retirement on time. They are planning to spend their first summer living in Portugal, a place they’ve talked about visiting for years.

With a plan in place, they have the confidence of knowing their lifestyle is sustainable, and they can enjoy retirement without worry.

Most importantly, their financial plan is regularly reviewed and monitored to account for life’s consistent inconsistencies.

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.