The Situation
- 64-year-old recently widowed woman
- Husband had managed the household finances and investment accounts
- Two adult children who were involved and supportive but lived in different states
- Approximately $2.8M in combined investment, retirement, and cash assets
- Multiple investment and retirement accounts held at different institutions
- Several accounts and financial statements Margaret did not fully understand
- Life insurance proceeds had recently been received and were sitting in cash
- No clear understanding of how much she could comfortably spend each year
- Needed to determine when and how to begin Social Security and retirement account distributions
- Recently retired and concerned about creating reliable income for the rest of her life
- Estate documents were several years old and needed to be reviewed following her husband's death
Our Approach
- Organized and consolidated Margaret's financial information to create a clear picture of her assets, liabilities, income, and expenses
- Reviewed investment accounts and developed an appropriate investment strategy based on her new circumstances and risk tolerance
- Created a sustainable retirement income strategy designed to support her lifestyle while preserving long-term financial security
- Evaluated Social Security and retirement account distribution strategies
- Determined an appropriate amount of cash reserves and invested excess life insurance proceeds according to her financial plan
- Reviewed tax implications of inherited assets, retirement accounts, and future distributions
- Updated beneficiary designations and coordinated the transition of accounts following her husband's death
- Created a financial plan that could be revisited and adjusted as Margaret's circumstances and priorities evolved
Collaborating with Specialists
- Worked with Margaret's CPA to address tax filings following her husband's death, inherited assets, and future tax planning
- Introduced her to an estate planning attorney to review and update her estate documents, beneficiary designations, and powers of attorney
- Coordinated with her insurance professional to review life, health, long-term care, and umbrella coverage
- Worked alongside her family as appropriate, while keeping Margaret at the center of every financial decision
Significant Results
- Transformed a complicated collection of accounts into an organized and understandable financial picture
- Created a reliable strategy for generating income throughout retirement
- Invested life insurance proceeds according to a thoughtful long-term plan rather than leaving them sitting indefinitely in cash
- Improved tax awareness and coordination around inherited assets and retirement distributions
- Updated her estate plan and beneficiary designations to reflect her new circumstances
- Gave Margaret a clearer understanding of what she could afford to spend and enjoy
- Provided a trusted team and ongoing guidance as she adjusted to life without her husband
- Most importantly, gave Margaret confidence that she could manage her financial future, even though she had never expected to have to do it alone