The Retirees

Situation

Steve: 70 year old retired Dentist
Kathy: 68 year old retired Teacher
Children: 1 (40)
Grandchildren: 3 (8, 10, 13)
Investable Assets
(Joint Account & IRAs): $2,800,000
Wills & Powers of Attorney: Recently updated
Life Insurance: 2 Whole Life Policies for
$500,000 each

 

iThrive Life Planning Process™

Vision: Ensure they do not outlive their assets; not be
a burden to their family; pay for grandchildrens’ education;
make charitable contributions to their church and
alma maters.

Awareness: Our analysis revealed they were above
the confidence zone with a 99% probability of achieving
their Vision if they continue their current path.

Plan: In a live planning session we made adjustments to
optimize their confidence score to 88%. Allowing them
to reduce investment risk and spend more in retirement.
Implement: Thrive Implemented their plan every step
of the way.

Monitor: Thrive continues to annually confirm their vision,
test their plan, and hold them accountable so they
stay on path.

 

Results

Life Style: Showed Steve and Kathy they would not
outlive their assets and are in a position to contribute to
their grandchildrens’ college savings plans, give more to
their church and alma maters, and increase their spending
to include more travel.

Investments: Reduced the overall risk in their portfolio.
Consolidated many of their unnecessary investment
accounts. Saved them $12k/year in fees by eliminating unproductive
expensive investments and consolidating their
relationship to one firm.

Insurance: Utilized the accumulated cash value in their
whole life policies to purchase a universal life contract
providing a legacy for their daughter and a pool of money
to cover their grandchildrens’ education. Purchased longterm
care insurance.



Estate Planning: Updated beneficiary designations
to include their daughter as a contingent beneficiary. In
doing so their daughter can establish a stretch IRA. This
will allow her to defer hundreds of thousands of dollars
in taxes.

Taxes: Donated low cost basis stock to their church
and alma maters saving $25k per year in taxes.

The above is a hypothetical case study and not based on actual individual client results.

The results achieved in our simulations do not guarantee future investment results. It is possible that the markets will perform better or worse than shown in the case study; that the actual results of an investor who invests in the manner these case studies suggest will be better or worse than the projections; and that an investor may lose money by investing in the manner the case studies suggest. The case studies assume the reinvestment of dividends and do not include transaction costs for purchases and sales of equities and bonds or mutual funds and ETFs.  We assume no deduction for advisory fees, and that assets are allocated in the manner the projections suggest until the hypothetical client reaches age 95.  The final results also address such factors such as annual spending, annual savings, timing and cost of goals.  Although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. While the case study results reflect rigorous application of the investment strategy selected, hypothetical results have certain limitations and should not be considered indicative of future results or results for any individual investor. In particular, they do not reflect actual trading in an account, so there is no guarantee that an actual account would have achieved these results shown. 

Thrive Wealth Management, LLC’s (Thrive) web site does not represent an offer of or a solicitation for advisory services in any state/jurisdiction of the United States or any country where the firm is not registered, notice filed, or exempt.  Thrive provides advice and makes recommendations based on the specific needs and circumstances of each client.  Clients should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. Thrive is not a broker dealer and does not offer tax or legal advice. Please consult your tax adviser or legal counsel for assistance with your specific needs.

Thrive Wealth Management, LLC works as your personal financial advisor or financial planner, offering you a wide range of services such as investment management, retirement planning, insurances, succesion, retirement, tax, small business and many more. We proudly serve clients from King of Prussia and Valley Forge PA, as well as the surrounding communities.

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