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Anne & Fred: Want to Retire Early

Age: 57 & 62
Annual Income: $132,000
Net Worth: $1,065,951
Concern: Considering Early Retirement

Background
Anne and Fred, 57 and 62, are looking ahead to retirement early next year. They are thinking about heading south to a cheaper and warmer state but haven’t made a firm decision. Fred is the sole breadwinner and earns $125,000 plus an additional $8,000 from investments.

The Reese’s can be considered “millionaires next door,” with a net worth of $1,065,951. They have absolutely no debt and the following assets: $32,000 in a 2% bank passbook account, $347,365 in telephone stock; $224,901 in Fred’s 401(k); $31,000 in an annuity; $202,685 in mutual funds; $23,000 in whole life insurance; their $190,000 home; and $15,000 of personal property.
CONCERNS
The Reese’s two main concerns are longevity and taxes. “We want to take income from investments with the least amount of tax liability and make the money we have accrued last as long as we do,” notes Fred. He also noted a concern about taking money out of tax-deferred plans in the correct manner to avoid IRS penalties.
THORNWOOD SERVICES
Develop an early retirement plan that seeks to help them have enough to retire next year.

Construct and manage a diversified investment portfolio to help mitigate market risk.

Devise a Social Security claiming strategy to maximize their lifetime SS income.

Set up retirement income streams to help manage the tax liability in retirement.
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The case study and numbers used is a hypothetical illustration and does not reflect actual clients. It is for informational purposes only, does not constitute as investment advice, and is not legal or tax advice. Individual results will vary. Please consult the appropriate professional regarding your individual circumstance. Performance or projections are not guaranteed.

Content regarding social security is not associated with or endorsed by the Social Security Administration or any other government agency.

WISCONSIN
6226 BANKERS ROAD STE 1
MOUNT PLEASANT, WI 53403
(262) 638-0224

FLORIDA
THE VILLAGES
(352) 224-3082

ILLINOIS
12545 FARM HILL DRIVE
HUNTLEY, IL 60142
(847) 999-0700

OHIO
TOLEDO
(419) 799-7900

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