Case Study:  Richard and Regina Roberts

Richard and Regina came to us at age 55 and 54 respectively with the desire to retire as soon as possible. They both had successful careers in sales under their belts and wanted to know if they had “enough” to fund a moderate but comfortable retirement. Regina had already transitioned to part-time work, and Richard was feeling burned out by the stress of his job. They were both eager to have more time available to spend with each other and family now that their three children had graduated college.

During our introductory meeting, Richard disclosed to us that he had switched jobs a few years before and had accumulated almost a million dollars in his 401k with his previous employer. If he rolled this into an IRA, he could not access these funds without encountering a 10% early-withdrawal penalty until age 59½. Consequently, he had questions about whether he should continue to work. They were a bit overwhelmed by the number of considerations involved with approaching retirement: Where do we get health insurance coverage? How much can we spend? Will one or both of us have to get a job in our 70’s to supplement our income? When should we collect Social Security to maximize our benefits? Together we discussed their retirement goals and spending needs extensively before running any retirement analysis.

After several meetings with the Roberts to understand their situation fully, we prepared a plan integrating their taxable (brokerage accounts) and tax-deferred (employer retirement plan) assets that would allow Richard and Regina to retire the following year without incurring tax penalties. We helped them set spending goals that they will be able to maintain, and as part of our partnership we will help hold them accountable to those goals. We determined the most appropriate time for them to collect Social Security benefits based on their need, types of accounts and post-retirement income. We also helped them formulate a plan for health insurance coverage post-retirement and pre-Medicare.

With our strategic planning, Richard and Regina were able to get into a healthy retirement mindset; we asked them to consider what they were retiring TO. What would get them up in the morning when their jobs were no longer in the picture? What would be the activity providing purpose in their lives? Other than spending the extra time with family and friends, Regina now has plans to volunteer with the woman’s ministry at their church and Richard is looking forward to playing more golf and helping a local non-profit that focuses on young athletes in the community. As part of our long-term relationship, HSC will continue to partner alongside the Roberts’, removing their financial burden so they can “Sleep Well at Night” by managing their investment portfolio and providing sound counsel as circumstances arise in their retirement years.

If you want to learn more about how we can help you as a retiree, contact HSC Wealth Advisors today!