Case Study:
Navigating a Financial Windfall
+$618K in
newly inherited assets
Client Profile
Laura Davis, 53
Career
NIH Clinical Director
Net Worth
$1M TSP + $618K Inheritance
Meet Laura Davis
Federal employee who inherited assets, and their retirement nest egg now totals $1.6M with various different asset types.
Laura received an inheritance, consisting of retirement accounts and taxable assets, and want to be thoughtful about how to manage it.
If the assets were in retirement accounts, she was navigating required distributions over a 10-year period. If taxable, she was unsure how to invest efficiently. This windfall also created new choices for her.
Her Biggest Questions
How can I make sure I’m properly managing the inheritance I received?
What options do I have to help minimize my taxes?
How does the inheritance impact my existing plan and my retirement timeline?
Does this provide me with an opportunity to retire sooner or be more flexible in my lifestyle?
How We Worked Together
1
Review the Full Picture
We developed a strategy that aligned her existing finances with her inherited assets, so She could better understand the possibilities of what this money could now do for her family.
2
Build Her Roadmap
We outlined a plan that included a distribution plan for the inherited retirement accounts, tax-efficient investment strategies for all accounts, and projections based on her new financial position.
3
Put the Plan into Motion
Our team began implementing her plan, and we helped determine the order for withdrawals to help maximize her tax savings and support her ideal retirement timeline.
4
Ongoing Guidance
We check in with the Laura regularly, making sure our strategies and decisions still align with her retirement lifestyle and investment goals. We also helped ensure SECURE Act deadlines for inherited assets were optimized.
The Results
This new wealth allowed Laura to change her lifestyle to life more freely and accomplish goals she never thought possible, like tripling her traveling budget, buying a second retirement home, and helping her kids financially when she benefited from it the most.
- She feels confident in the way her inheritance supports her family.
- We have a clear plan for managing taxes, investing appropriately, and understanding how the windfall impacted her long-term goals.
- She understood what decisions to make and when.
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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.
Getting It Right From The Start
The Martins have built a strong foundation and are confident in their ability to retire, but want to make sure they have a plan in place to address their taxes, withdrawals, and investments for this next phase of their lives.