We began working with a client a few years ago as she neared retirement. She had always invested on her own never working with an advisor. As she neared the end of her working years she felt she needed help. After we guided her through our Financial Life Plan we gained a better understanding of what she wanted her retirement to look like. As a single woman she felt it was a little early to retire and wanted to work another 4-5 years. She was surprised to learn the retirement she thought was years away was an option now.
At this time, we discussed the need for her to shift a portion of her investments into lower risk holdings to provide the funds needed at the beginning of her retirement.
At each of our subsequent meetings we reviewed her Financial Life Plan confirming she was able to begin retirement whenever she felt comfortable. In the beginning of 2018, she decided to move up her plan and retire by the end of the year.
Now that we knew the “when” it was time to make another big decision, Social Security. We discussed the options of taking benefits now at a reduced amount or delaying and growing the benefit amount. Because social security increases for every month you delay, we recommended delaying benefits. She accepted our recommendation and decided to postpone collecting her benefit with knowledge that she can change her mind at any point.
The pre-retirement planning created, as a result of her Financial Life Plan, allowed us to position a portion of her investments to produce income needed for the first few years of retirement in a manner to help mitigate the effects of 2018’s losses. This gave her confidence to retire despite the recent market pull back.
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