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John and Marsha Smith

Ages: 67 and 62

Life Stage:  Newly Retired

Top Retirement Goal: To utilize their hard-earned assets, in combination with Social Security, to replace their paychecks from work.

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The Spending Plan

With a spending goal of $10,000/month, the Smiths were uncertain of how to fund this amount.  We created a Spending Plan that consisted of which accounts to take from and how much, in coordination with their other income sources.  We instituted a safe withdrawal rate, and we review annually to make sure the Plan remains successful.

The Investments

We designed an investment portfolio that was customized based upon their annual withdrawals, and long-term return needs.  We used our "Bucket Approach," in which we layer out years of their spending needs in risk-free, interest-bearing assets like Money Markets, CDs, and Treasuries.  The remaining portion goes into stock and bond funds, creating long-term growth and consistent income.

The Income 

Faced with the difficult decision of when to take Social Security, the Smiths were unsure of what action to take. We provided guidance on when the optimal time to file was, based upon their own unique lives and financial situation.

The Taxes

With their income levels dropping upon retirement, it creates an opportunity to perform certain tax strategies, such as Roth Conversions.  We established a five- year strategy to convert a specific dollar amount annually, while being mindful of their marginal tax bracket, until John is forced to take his required minimum distributions (RMDs).

The Estate Plan 

The Smiths reside in a state where probate is expensive, and challenging to navigate. We ensured all their accounts were titled properly and their Trusts and Wills updated appropriately - to avoid probate and safely facilitate the transfer of their wealth in accordance with their desires.

The Partnership

The Smiths feel confident in the guidance BTGRP provides.  Knowing their assets are professionally-managed and their spending plan is routinely analyzed for success, they are able to enjoy the retirement they dreamed of without worry.

Disclaimer: The above case study is a hypothetical example. Although we have worked with many families with similar circumstances, this does not represent an actual BTGRP client scenario. Clients engaging with BTGRP may experience different results or satisfaction. 

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