Case Study – Personal Planning

Like many other couples, our client (an attorney) and his wife (a part-time consultant) saw the importance of planning for retirement, but didn’t know how much retirement income they would need or when they would be able to retire.

While they already owned many financial products when they came to us for professional advice, they didn’t have a clear-cut retirement strategy.

By conducting a threat analysis, we (along with the help of property and casualty insurance agents) identified that their umbrella policy wouldn’t protect them from any lawsuit that might originate from the rental property they owned inside of a self-directed IRA.

After discussing sequence of returns risk when taking distributions from investment accounts during retirement, we implemented a plan to partially mitigate the impact of investment volatility.

We also helped the couple coordinate their finances and make a plan that puts them on track to retire in 10 years with enough retirement income to continue their desired lifestyle. Now, with a cohesive plan in place, this couple can have peace of mind about the future.

Defining Goals for a Comfortable Retirement

Case Study – Manufacturing Company

Looking ahead to the future of his business, one owner of a company that manufactures parts for the aerospace industry in both the civilian and government sectors wanted to set up a plan to ease into retirement.

Part of this plan involved training a new CEO and handing off responsibilities for day-to-day operations. With our guidance, the owner implemented a stock bonus plan with the aim of retaining and rewarding the CEO, while also incentivizing continued growth of the company.

To help this company retain employees, we also worked with the owner to institute a retirement plan as well as basic employee benefits.

We will continue to consider other exit strategies should it become desirable for the owner to ultimately sell the business. While we discovered that an employee stock ownership program (ESOP) may ultimately be the best fit, we plan further investigation as the situation develops.

And to ensure that the owner’s family will be financially sound should the owner pass away prematurely or simply predecease his wife, we helped him devise a savings and insurance plan for their protection.

Planning a Successful Exit Strategy

Case Study – Medical Practice

Being able to enjoy the fruits of a successful career with an early retirement requires making and sticking to a strategic plan.

One couple we worked with, a husband and wife who are both doctors and own a medical practice, decided to make progress toward this goal by starting a basic retirement plan over 10 years ago.

Five years later, we stepped it up by expanding their retirement plan to defer greater amounts of money, primarily allocated to them. This change allowed the couple to defer income taxes on contributions totaling over $227K per year, with 85 percent of the contributions allocated into their personal investments.

Recently, we employed a planning technique known as a micro-captive insurance company that created a structure that provides lawsuit protection for their practice as well as significant wealth building and tax benefits both today and in the future.

Together, we’ve crafted a retirement income plan that will provide in excess of 130 percent of the anticipated retirement income needed at age 58. With these smart moves, retirement is starting to look a lot brighter for this couple.

Readying for an Early Retirement