Note: These case studies are hypothetical and do not involve any real Alchemy Wealth Management clients.
This is not tax, legal or investment advice and should not be construed as such.
- Name: Larry & Sue
- Age: 71 & 70
- Occupation: Retired
- Income: N/A
- Retirement Savings: 2,100,000
- Debt: $120,000 (Mortgage)
About:
Larry and Sue have been retired for almost a decade now and recently have been traveling out of state to their daughter’s house to help out with their new grandbaby. They are beginning to get anxious about their distribution strategy in retirement. They are unsure if they will run out of money or if they will have a large surplus that they should be doing estate and tax planning with. In either scenario they do not know where to start.
Goals:
Larry and Sue, first and foremost, do not want to run out of retirement savings and become a financial burden on their children. They are not positive, but they believe that they have saved enough to avoid burdening their children and if their belief is correct, they want to pass their wealth on to their children in the most tax effective way possible.
Challenge:
Larry and Sue are hesitant to broach the topic of finances with their children, because they don’t necessarily want their children to be aware of how much they are worth. They do not who who to talk to about their financial concerns and honestly is is easier to not think about it. They are enjoying their retirement and don’t want to spend the mental energy dealing with their finances.
Results:
Larry and Sue partner with a Fee-Only Fiduciary Financial Advisor at Alchemy Wealth Management.
Larry and Sue partner with their Financial Planner and determine that they will likely have a surplus of savings at the end of their life and it will be unlikely that they will need financial assistance from their children. With that fear put to rest, their Financial Advisor introduces them to a CPA and Estate Planning Attorney. Together, as a team, they build a comprehensive estate plan for Larry and Sue.
Most importantly, Larry and Sue now have peace of mind that their assets will be passed to their children tax efficiently.