Gearing up for retirement in just 15 months, Scott and Janet do not feel completely confident. They have built up quite a bit of wealth, but reversing the process and withdrawing money is totally foreign to them. Their questions include:
- How much can we safely withdraw each year so we don’t run out of money?
- Which account or accounts should we take money from to meet our living expenses?
- Should we switch our accounts into income-generating investments like bonds and high dividend stocks?
- When should we take social security?
PartnersInWealth first put Scott and Janet’s minds at ease, assuring them their problem is a common one and that we have extensive experience helping clients make a successful transition to retirement.
Armed with knowledge from asking Scott and Janet thoughtful questions, and insights from analyzing the many documents they provided, we go to work and create a WealthPlan just for them. It includes:
- Detailed projections of what will happen to their wealth over time as they withdraw money from various accounts. We show them real time, “what-if” changes in assumptions to immediately see the effect on their wealth.
- Varying scenarios of withdrawing money from different combinations of accounts, to find which combination helps their money last longest.
- Historical information on how turning wealth into income increases portfolio risk, at a time when risk tolerance should be declining. We show them exactly how we will create a predictable monthly income while keeping their nest egg safe.
- Graphic presentation of starting social security at different ages and the effect on Scott and Janet’s long-term situation.
Scott and Janet came into the meeting looking worried. They leave smiling and feeling confident—excited because they now have a plan in place to transition smoothly from building wealth to living on it.