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John and June Smith were introduced to us by a long-time client and family member of the Smiths. John and June were looking at retirement in the next 10 to 15 years and had concerns whether they were saving enough to reach their retirement goals. In addition, they wanted assistance identifying how to maintain their lifestyle in retirement. Mr. and Mrs. Smith live in a neighboring town, so we met with them via Zoom, which allowed us to speak to them directly and listen to their questions and concerns.   

During our initial meeting, we addressed the Smiths’ questions regarding our process and investment philosophy. We talked about what they wanted to accomplish and the timeline in which they’d hoped to accomplish their objectives. Their primary concern was saving for retirement. We helped them develop a net worth statement, including their assets and liabilities. We talked about the necessity to analyze the information to ascertain where they are in their journey to reach their retirement objective. We wrapped up the initial meeting explaining that we will work on a game plan and come back to them with some insight on where they are and then discuss the steps to help them either get on track or stay on track.

During our second Zoom meeting, we went over the game plan with the Smiths on the screen so they could visually understand various potential outcomes. The plan is interactive, so we were also able to show how different variables and “what-ifs” impacted their outcomes. Since John and June were close to their retirement objective, we were able to propose some effective steps designed to help them cross the finish line.

We proposed refinancing their mortgage with the objective of shortening their payoff timeline so that they would not have mortgage payments in retirement. In addition, we proposed consolidating their investments from several old retirement plans and developed an allocation strategy that was built to help them pursue their objective while implementing a measured approach to risk and return. We also recommended a specific savings plan, leveraging their work retirement plans and Roth IRAs, to help supplement what they were already doing. We went over the costs associated with the proposed investments, as well as the flexibility the strategy provided. Organizing and focusing their plan enabled us to address their future changing needs and objectives, and show them a potentially successful outcome to their plan. 

At the conclusion of the second meeting, we delivered the plan for them to review. After they had time to discuss, we set up another meeting to address their residual questions. Once all questions were answered, and we were all in agreement on the exact process, they chose to work with us on executing the game plan. We assisted them in getting everything transferred and consolidated and reviewed the completed strategy with them once it was all in place. 

We periodically meet with the Smiths and go over their plan and portfolio to ensure we stay on course. As part of the ongoing planning process, we update the plan with changes that have occurred with them and with the portfolio. We go over the progress that they have made toward their goals. In addition, we update the portfolio for their changing needs and objectives and the different market environments. We have found this process of periodically reviewing and updating helps lead to a much higher probability of success and in-depth understanding for our clients’ situation as well as changes along their journey.

Asset allocation does not ensure a profit or protect against loss. Results will vary. The names included are for illustrative purposes and do not reflect the actual client names.
 

We regularly communicate with clients regarding a similar question as they approach retirement, which goes something like this: “I have been working and saving for retirement.  When I retire, what should I do and how do I use these savings? When should I file for Social Security?”  This case study looks at how we approach these very important questions.

John and June Smith have been working and saving diligently and are looking to retire in about a year. The team has conducted a thorough analysis and created a customized plan for the Smiths.  As part of our process, we periodically review their progress to ensure they are on track toward their retirement goals. If they are not on track, we have an honest conversation about their options, including delaying retirement or adjusting their goals to what their plan will support.

As we enter the 12-month period prior to retirement, we set up a series of meetings to help prepare the Smiths for a seamless transition into retirement. This can come with some apprehension, including questions about making sure their money lasts coupled with the loss of an ongoing paycheck. With this in mind, and given our decades of experience, we have found that it’s better in these cases to meet several times throughout the year to break down the transition into four meetings:

 

First Meeting

We review the game plan carefully to make sure we have all of the Smiths’ objectives accounted for. Through our interactive planning system, we look at multiple scenarios that may help the Smiths understand some of the “what-ifs” that are on their mind. We also begin the process of working through the practical logistics of the retirement process and addressing questions such as:

    • Which accounts do we use for income?
    • Do I roll over my retirement plan and, if so, when?
    • If applicable, which pension option is best for me and why?
    • When do I file for Social Security and why?
    • How do I pay for irregular expenses, such as traveling and replacing vehicles?
    • What are my tax implications, and how do I pay them?
    • What happens if I have an unexpected expense?

 

At the end of the first meeting, our goal is to have a solid game plan for the next steps in the process.




Second Meeting

We begin to address any residual or new questions the Smiths may have on the retirement process. We again review the plan and the objectives with the Smiths to make sure we are still on target. We then determine the specifics of what they may need initially as they enter retirement. This includes discussing their initial income distribution options. Next, we look at the resources available to provide them with retirement income and begin working through what needs to happen to set those income vehicles up. In the Smiths’ case, they have a pension. We evaluate and discuss the many different pension options available so we can assist them in making an informed decision for which option best fits their unique situation. This is an important step given pension decisions are typically irrevocable. We also walk them through and discuss when to file and how to best utilize Social Security. 

Once we have a plan in place for their pension and Social Security, we discuss how to utilize their retirement savings. Here, we address how often they may need income and where it will come from. We also emphasize the flexibility of changing their income strategy after retirement. This provides reassurance that some adjustments can be made post retirement and that decisions are not absolute. We make sure the Smiths leave this meeting having a clear picture of what is going to happen and when.



Third Meeting

This happens two to three months before the Smiths’ actual retirement date. We have found that this is good time to conduct this meeting, as the last month of retirement can get busy, and we want them to enjoy the ride knowing that they are set up and ready to go. In this meeting, we again look at the plan to make sure the objectives are still correct. We finalize any pension decisions that need to be made and help with any paperwork necessary to initiate that process.  Since the Smiths will draw income from their Stifel accounts, we complete the paperwork establishing direct deposits to their bank. We also discuss timing and strategy for any retirement plan distributions. In addition, we address any more questions they have about the process.



Fourth Meeting – Post Retirement

The Reardon Group’s process, however, does not end there.  After retirement, we have a fourth meeting that occurs a couple months after retirement. In this meeting, we review how retirement is going. We verify that the Smiths are receiving their retirement income on time and that it is sufficient according to their needs. In addition, we enjoy hearing stories about their early retirement. We review the portfolio as it stands and make any modifications as necessary.  



Periodic Review Meetings

We continue to meet with the Smiths on a periodic basis throughout retirement. We find this is important so we can modify the portfolio and their income to adjust for their needs as they continue to evolve throughout retirement.



Results will vary. The names included are for illustrative purposes and do not reflect actual client names.

Decisions to roll over or transfer retirement plan or IRA assets should be made with careful consideration of the advantages and disadvantages, including investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment, and your unique financial needs and retirement planning. Neither Stifel nor Stifel Financial Advisors provide recommendations with respect to your decision to move assets out of an employer-sponsored retirement plan. Once you inform your Stifel Financial Advisor that you have chosen to roll your retirement assets to an IRA with Stifel, your individual investment needs can be addressed. You should consult with your tax advisor regarding your particular situation as it pertains to tax matters.
 

Leaving an employer, changing your career, or getting ready to retire often presents individuals with an important decision to make – what should you do with your employer retirement plan? Do you leave it in your prior employer’s plan? Do you move it to your new employer’s plan? Do you roll it to an IRA? Each of these choices have pros and cons to consider. At The Reardon Group, we have an open and honest conversation that seeks to help our clients make informed and educated decisions regarding one of their most sizable and important assets.

We reached out to Sam and Sally Jones to review and update their plan and discuss their current portfolio. Sally was contributing monthly investments into her Roth IRA, and they both had been contributing to retirement plans through their employer. Our conversation led to the fact that they were getting closer to the age where retirement was becoming a real possibility. We then discussed the importance of a financial plan and how the right strategies can help illuminate the path toward their retirement and address whether they have accumulated enough wealth to provide the lifestyle they have always wanted.

During the review and updating process, Sam and Sally provided us with information on their current employer plans and Sam’s prior employer plan. They were also able to provide us information on their current allocation and investment options within the plans. Sam and Sally had done a wonderful job saving in their employer plans, where they had accumulated a sizable amount for retirement.

We noticed, however, their employer retirement plan allocation was far too aggressive given their goal to retire in a few years. We showed them how their goals could potentially be derailed if their portfolio experienced a significant downturn. Our primary objective was to help them mitigate their portfolio risk and volatility and create strategies designed to preserve what they had already saved. We reviewed the limited investment options within their current retirement plans and suggested an asset allocation strategy that would be more conservative.

While Sam had a sizable amount of savings within his prior employer retirement plan, the investment options were primarily focused on growth. This exposed his portfolio to the possibility of significant losses. We discussed the pros and cons of rolling the plan over to an IRA with our team along with the pros and cons of their other choices. One of the pros of rolling to an IRA was having access to a broader range of investment options, including private stock and bond managers. We created a proposal for a customized portfolio designed to pursue the Jones’ unique goals. The portfolio dramatically increased the diversification for the Jones’ and mitigated overall volatility. After discussing the portfolio in detail, Sam and Sally decided to move forward and roll the plan over to an IRA.

Our team assisted with this process by scheduling a conference call with the plan sponsor to determine the process to initiate the rollover. Sam’s plan required paperwork, so we helped Sam complete and appropriately submit it to the plan sponsor. We maintained a high level of communication with Sam throughout the process, providing updates on the status of the rollover. Once the check arrived, we gave Sam the good news, and he gave final approval to implement the portfolio.

After the implementation process is completed, we periodically review the portfolio and financial plan with Sam and Sally and discuss if any adjustments need to be made as it relates to changes in their life, their plan, and the broader economy.


Results will vary. The names included are for illustrative purposes and do not reflect actual client names.

Decisions to roll over or transfer retirement plan or IRA assets should be made with careful consideration of the advantages and disadvantages, including investment options and services, fees and expenses, withdrawal options, required minimum distributions, tax treatment, and your unique financial needs and retirement planning. Neither Stifel nor Stifel Financial Advisors provide recommendations with respect to rollovers from an employer-sponsored retirement plan. Once you inform your Stifel Financial Advisor that you have chosen to roll your retirement assets to an IRA with Stifel, your individual investment needs can be addressed. You should consult with your tax advisor regarding your particular situation as it pertains to tax matters. Diversification and asset allocation do not ensure a profit or protect against loss.
 

Jane Smith is young professional in her mid-30s with questions about her investments. She was saving to a Roth IRA and taxable investment account with a robo-advisor before turning to The Reardon Group. During our initial conversation, we conducted a detailed, fact-finding discussion, where we gathered her personal information, identified short- and long-term goals, and analyzed details on her current investments. Given this information, we developed a comprehensive strategy to capture an overarching picture of Jane’s financial situation.

While reviewing Jane’s robo-advisor portfolio, we noticed her taxable investment account was nearly 40% bonds – unusual for someone so far away from retirement. We had a conversation with Jane about her risk tolerance and asked if the money was designated for a short-term goal.  She said no – it was for retirement. We mentioned how her current allocation seemed too conservative given her 25-plus-year time horizon. Jane was unaware of this. She told us that her portfolio was given to her after answering several questions online, many of which she didn’t fully understand. We then utilized the strategy we developed for Jane – along with conversations and questions about her risk tolerance – to build her a customized investment plan consisting primarily of growth stocks that we believed best suited Jane’s situation. Comparing her current plan to our growth-oriented plan, Jane realized ours best aligned with her goals.

Another issue we identified was Jane’s significant raise from her employer in the first half of the year.  Based on her new salary, she was well above the earnings limit to contribute to a Roth IRA.  Jane was unaware of this rule. Her robo-advisor never mentioned the Roth IRA and earnings limit, asked about employment changes, or considered a change in income. At The Reardon Group, this is an important topic of conversation – among others – during our periodic review process, taking into account your ever-changing situation and objectives. We recommended that Jane immediately stop contributing to her Roth IRA to see if contributions made this year could be removed. Not only did the robo-advisor not help Jane, they required her to do the calculations herself and inform them the exact amount to withdraw from the account.

At this point, Jane was ready to move her accounts to The Reardon Group. Once the transfer was complete, we implemented the customized, growth-oriented investment plan specifically designed to pursue her goals. When tax season came around, we referred Jane to CPAs for her to consider, and her chosen CPA helped calculate and correct the contributions made to the Roth IRA. We also coordinated with her CPA to remove any excess contributions and help Jane avoid any unnecessary taxes and penalties associated with her Roth IRA contributions.

Jane will continue to receive our personalized and professional guidance through periodic reviews and check-ins, important services a robo-advisor simply cannot provide.
 

Results will vary. The names included are for illustrative purposes and do not reflect actual client names.