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Mike and Lisa

Case Study: Navigating the Retirement Roadmap

 

Primary Goal: As a comprehensive financial planning professional, our primary goal was to provide Mike and Lisa with a variety of choices and devise a strategic plan for a stress-free, comfortable retirement.

Client Profile: Mike, a successful tech start-up executive, and Lisa, a top-tier corporate lawyer, have been contemplating their retirement options more seriously of late. Even though they are passionate about their careers and are at the peak of their professional lives, the allure of spending quality time with their children and recently born grandkids has made them think about slowing down.

Mike's tech start-up is growing rapidly, contributing to an exciting work environment that he enjoys immensely. However, he likes the idea of knowing that he has the financial freedom to step back whenever he wishes.

Lisa, although committed to her demanding job, is increasingly drawn towards spending more time with her daughter and her grandchildren.

Over the years, Mike and Lisa have been diligent savers and prudent investors, even as they indulged in some luxuries. They have reached a comfortable financial position, but as Mike approaches his 60s and with grandchildren in the mix, they're looking for a clearer understanding of their retirement choices.

The Approach: Despite some generic advice from their bank advisor and personal online research, Mike and Lisa felt overwhelmed and uncertain about their retirement plans. To gain clarity and assurance, they decided to enlist our financial planning services.

The comprehensive financial plan we developed for Mike and Lisa included:

  1. An evaluation of their current cashflow requirements and a projection of their retirement cashflow needs.

  2. A thorough review of their investment portfolio, identifying areas of overexposure and imbalance.

  3. A realignment of their investments to better fit their risk tolerance and retirement goals.

  4. A restructuring of their financial accounts to optimize tax efficiency.

  5. An exploration of Lisa's pension options, such as guaranteed vs. non-guaranteed terms, survivor benefits, and indexation options.

  6. An analysis of the benefits of taking the Pension Plan early versus deferring it.

  7. A strategy to determine the most tax-efficient sequence for withdrawing from their various assets.

  8. The establishment of an estate plan for a smooth transition of wealth to their children and grandchildren.

The Results: Mike and Lisa now have a detailed roadmap that offers them the flexibility and confidence they were seeking. Lisa decided to shift to a less demanding job role to spend more time with her family, secure in the knowledge that their financial plan can accommodate the change.

The couple found that a few strategic adjustments to their investment portfolio and smart decisions about when and where to draw money from could significantly boost their retirement income over their lifetime.

They successfully optimized their Pension options benefits. Furthermore, they increased their charitable contributions, thanks to a strategy that produced more tax credits without costing them extra on an after-tax basis.

Mike and Lisa are now assured that they have examined all their options and have a sound retirement plan in place, allowing them to focus on enjoying their family and the next phase of their life journey.

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