Case Study:
Dual-Federal Family
43+ Years
COMBINED FEDERAL SERVICE
Client Profile
Laura and David Smith, 56 & 59
Careers
DOJ Attorney + IT Deputy Director
Net Worth
$1.9M in investable assets
Meet Laura and David Smith
Nearing retirement, the Smiths had several sources of income, but no plan for managing them effectively
Laura and David built a strong financial foundation across their decades of federal service. At ages 56 and 59, they felt confident they could retire soon. They had the resources, but what they lacked was clarity on how to bring everything together.
Some of their benefits overlapped, and they faced choices that were really only available to dual-fed families. They wanted to avoid costly mistakes, particularly around taxes in retirement and distribution timing. They weren’t sure how to coordinate their FERS benefits, TSP withdrawals, Roth conversions, and investment changes to create reliable and tax-efficient income.
And last, but certainly not least, they wanted to know if they could maintain their lifestyle (or even spend more) during retirement.
Their Biggest Questions
Is electing a
survivor benefit
pension (SBP)
for each other
worth the cost?
Since we both
qualify for
FEHB, what’s
the best way to
coordinate?
How do we
navigate two
separate FERS
programs?
How do we
generate our
retirement
income in a tax-
efficient way?
How We Worked Together
1
Review the Full Picture
We started by getting a thorough understanding of what was
most important to Laura and David, what their lifestyle was
like, and what resources were available to them.
2
Build Their Roadmap
We developed a plan for separating from service for each of
them. In doing so, we determined which spouse should elect
survivor benefits and why, optimized an income plan for their
pension and portfolio, and created a tax plan around their full
financial picture so that everything was in alignment.
3
Put the Plan into Motion
Our team began implementing their plan, which included a
withdrawal strategy, Roth conversion analysis, and portfolio
adjustments designed for retirement income.
4
Ongoing Guidance
We checked in with the Smiths regularly, making sure our
strategies and decisions still worked with their changing needs
in retirement.
The Results
Laura and David were able to head into retirement feeling more comfortable in their ability to make aligned decisions with their wealth, while avoiding potential missteps along the way. They were confident that with the help of RMG Advisors, they weren’t leaving opportunities on the table and everything was being handled properly.
- They retired with a clear and coordinated plan.
- Tax planning strategies helped reduce their lifetime tax liability substantially, while increasing their total tax-free assets and strengthening their plan.
- They understood what benefits to elect, what to adjust, and why.
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