Pre-Retirement Planning
The Situation
A couple in their early 60s approached Ivory Oak Capital with retirement just 3-5 years away. They had accumulated assets across multiple 401(k) accounts, IRAs, taxable brokerage accounts, and company stock from previous employers. While they had saved diligently, they lacked a cohesive strategy for transitioning from accumulation to distribution. Key concerns included: when to claim Social Security, how to structure retirement income to minimize taxes, whether their savings would last through a 30+ year retirement, and how to optimize their investment allocation as they approached their retirement date.
Our Approach
Dylan T. Franzten began with a comprehensive discovery process to understand the couple's retirement vision, spending needs, legacy goals, and risk tolerance. The planning process included detailed Social Security analysis using specialized software to model various claiming strategies, comprehensive tax projection modeling to identify optimal withdrawal sequencing from different account types, Monte Carlo simulation to stress-test portfolio sustainability under various market conditions, and a glide-path investment strategy to gradually reduce equity exposure as retirement approached.
The Outcome
The couple now has a clear roadmap for their retirement transition. They consolidated their accounts for simplified management and implemented a coordinated investment strategy aligned with their retirement timeline. The Social Security analysis revealed that delaying claims until age 70 for the higher earner would maximize lifetime benefits by over $200,000. A tax-efficient withdrawal strategy was established to manage their tax bracket in retirement, including strategic Roth conversions during lower-income years before RMDs begin. The couple gained confidence that their assets, combined with Social Security, would support their desired lifestyle through age 95 with appropriate risk management.
What This Means for You
If you're approaching retirement with questions about Social Security timing, tax-efficient withdrawals, or portfolio sustainability, a comprehensive planning approach can provide clarity and confidence. Every pre-retiree's situation is unique, but the process of analyzing your specific circumstances, modeling various scenarios, and creating a coordinated strategy can help you transition into retirement with a clear plan. This case demonstrates how personalized financial planning addresses the complex decisions that arise during the critical years before and after retirement.
Ready to Plan Your Retirement Transition?
If you're approaching retirement and want to create a comprehensive plan for this important life transition, let's discuss your specific situation and goals.