Ready to Retire

Case Study: John

John, a 55 year old former CEO and father of 3, is ready to retire from his daily grind at work and start a small consulting business.

John knows that his current work schedule is killing him and he’s just not having fun anymore. He wants to work enough to pay the bills and not have to get on a plane every week like he does today.

Concerns

  • John wanted to know how soon he could retire and still maintain his current lifestyle.

  • John wanted to know how much money he needed to make as a consultant in order for this plan to work.

  • John was concerned that inflation would be higher during retirement, and he wanted to know what his portfolio should look like in order to keep pace.

  • John had some cash value built up inside of an old life insurance policy and wanted to know if he should keep the policy, and if he should stop making payments into it.

  • John wanted to know what his taxes would look like in retirement and if there were any strategies that we recommended.

Solutions

  • We built a multi-year cash flow model for John showing what his income sources would be vs. his expenses. We ran multiple scenarios where his consulting income ranged from non-existent to low six figures.

  • We helped John determine what his required rate of return needed to be on his portfolio in order to retire and maintain his lifestyle.

  • We helped John consolidate his old 401K accounts.

  • We helped John compare his risk tolerance to his investment mix, and pointed out that there was a disconnect between the two. We then helped him bridge this gap.

  • We helped John look at strategies for keeping his life insurance policy vs. using the cash value to do a tax-free exchange into a new life policy that also offered long term care insurance benefits.

  • We helped John set up his new business venture by connecting him with other Advisors (CPA, bookkeeper, attorney) and held his hand throughout the process.

John is now able to work on his own schedule, maintain a steady cash flow, and easily transition into retirement.

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