Tim and Jennifer, both 60, are at an exciting yet critical stage of life. With $1.5 million in traditional retirement accounts and $1 million in taxable brokerage assets, they’ve done an excellent job of saving for the future. However, like many retirees, they’re concerned about whether their nest egg will last. They dream of traveling and living in different cities over the next 10 to 15 years, taking advantage of their good health and newfound freedom. Adding complexity to their planning, Jennifer anticipates a significant inheritance but isn’t sure when—or even if—it will materialize.
The Numbers
2500000
175000
10
Scenario Analysis
What did we look at?
The Outcome
Tim and Jennifer has some important decisions but thanks to our analysis they will be well informed of the trade-offs.
Sometimes retirement planning is about understanding options, trade-offs and risks.
Tim and Jennifer have substantial resources and ambitious goals. While a “best-case” scenario—featuring strong market performance and a sizable future inheritance—could enable them to retire now, they face the risk of falling short of their retirement goals if the markets underperform or the inheritance does not materialize.
In either case, there are considerable opportunities for tax planning, particularly given their location and the years remaining before they reach the age for required minimum distributions. Additionally, gaining a clearer understanding of the nature and timing of their inheritance will help them make well-informed decisions now, positioning themselves for long-term financial success.
The provided examples are fictitious and designed for illustrative purposes only. They are not intended to represent the experiences of any specific client or individual. Financial North Partners and NewEdge Advisors do not provide tax, legal, or accounting advice. You should consult your own tax, legal, and accounting professionals before making any decisions based on the strategies or concepts discussed.