Case Study:
Getting It Right From The Start
9 Months Away
from starting retirement
Client Profile
Thomas and Jill Martin, 62 & 63
Careers
Thomas: SES, Jill: Attorney
Net Worth
$2.7M in investable assets
Meet Thomas and Jill Martin
Nearing retirement with a mix of investment accounts
Thomas and Jill had built a strong financial foundation and felt confident they could retire. What they lacked was clarity on how to bring everything together.
Thomas’ plans to retire from his Senior Executive Service role in less than a year, and they have a total of $2.7M in investments including TSP, Jill’s retirement accounts, and other savings & investments.
They wanted to avoid costly mistakes, particularly around taxes and distribution timing, while better coordinating their various accounts.
Their Biggest Questions
How do we organize our TSP, Social Security, and investments in a tax-efficient way?
What opportunities can we take advantage of for reliable income in retirement?
What needs to change so we can maintain our lifestyle for the decades to come?
When should we withdraw from our retirement accounts for the best tax efficiency?
How We Worked Together
1
Review the Full Picture
We dove into a deeper review of Thomas and Jill’s investment and retirement accounts, exploring opportunities to better distribute their wealth before Thomas retires.
2
Build Their Roadmap
We presented a fully integrated retirement plan that aligned their income needs, tax strategy, and investment allocation. This included a withdrawal strategy, Roth conversion and tax plan, and portfolio adjustments designed for retirement income.
3
Put the Plan into Motion
Our team began implementing their plan, with a key focus on taxes and income distribution, to help Thomas retire comfortably and sustain his ideal lifestyle with Jill.
4
Ongoing Guidance
We continue to meet with the Martins and adjust their plan as needed, keeping them on track for a long-lasting, financially comfortable retirement.
The Results
Thomas and Jill have gained a sense of trust in the direction of their financial plan, and know they can move forward with clarity and confidence. They understand what to keep, what to adjust, and why, and know they can always reach out to RMG when questions arise.
- The Martins overcame their uncertainty, and now have their full financial picture outlined.
- By planning ahead, they avoided potential missteps and gained trust in the direction of their plan.
- They made use of the strategies that were specifically created based on their income, investments, taxes, TSP, and Social Security.
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The Smiths had two sets of government benefits. Multiple pensions, several FERS and financial decisions, but no plan for managing them effectively in retirement. They were eager to bring everything together, while avoiding costly mistakes, before retiring.
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Laura Davis, a federal employee, received a large inheritance and wants to be prudent with this new wealth, as well as manage it with their existing retirement assets in a tax-friendly and optimized manner.