Case Studies

Client Situation

Mark and Sarah, in their late 50s, were approaching retirement after long, successful careers, Mark in sales and Sarah in healthcare. Their children had moved out, and with a sizable investment portfolio, they were financially comfortable. Still, they had concerns about preserving their wealth, planning for healthcare, and making meaningful charitable contributions.

Client Concerns

They wanted to make sure their retirement investments were appropriately positioned, that they wouldn’t be burdened by long-term care expenses, and that their legacy would be passed on smoothly and tax-efficiently. Charitable giving was also important to them, but they weren’t sure how to do it in a tax-advantaged way. Additionally, they wanted to begin transferring wealth to their children and future grandchildren in the most tax-efficient manner possible.

Our Approach

We began with a deep discovery process to align their financial plan with their values. We helped them rebalance their portfolio for moderate growth with less volatility. A plan for long-term care was integrated using hybrid insurance solutions. To address estate and tax concerns, we worked with their attorney to draft trusts and charitable giving vehicles like donor-advised funds. We also implemented a Roth conversion strategy over several years to reduce their future RMD burden. For their family gifting goals, we established a systematic plan utilizing annual gift tax exclusions and 529 education accounts to begin transferring wealth to the next generation tax-efficiently.

Outcome

Mark and Sarah now have a financial plan in place that is aligned with their unique retirement goals. They have a strategy in place for future generations as well as a tax plan that is designed to allow them to give generously without compromising their retirement income.

Note: The above case study is hypothetical and does not involve an actual client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if 360 WMP is engaged to provide investment advisory services. Disclosure: LPL Financial and LPL representatives do not provide tax or legal advice. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. (28-LPL). Disclosure: Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

Client Situation

Diane, 62, had recently gone through a divorce and was re-entering the workforce. She had a modest 401(k), a small pension from her previous job, and a townhouse she loved. Her goal was to retire within five years while making sure she could maintain her lifestyle and leave something behind for her family.

Client Concerns

She was concerned about whether she had saved enough, how to create a steady income stream in retirement, how to prepare for healthcare and long-term care expenses, and how to manage taxes efficiently. As a single woman, she wanted a clear plan she could feel confident about without relying on anyone else.

Our Approach

We worked closely with Diane to create a detailed retirement income plan, incorporating Social Security timing and pension options. We strived to optimize her investment accounts for income and less volatility, and implemented strategies to reduce her taxable income in retirement. We also helped her evaluate long-term care insurance and created a simple, effective estate plan that prioritized her son and grandchildren.

Outcome

Diane now has a retirement plan that addresses her concerns about her future financial independence. Her plan is designed to provide enough income to meet her needs and feel more confident about her future.

Note: The above case study is hypothetical and does not involve an actual client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if 360 WMP is engaged to provide investment advisory services.