"I have retired but am having a hard time adjusting to the idea that my portfolio will provide for my income needs. Can you help me create a plan for this and also avoid taking on a lot of taxes?"

A man in his mid-60s recently retired from his small law practice. He had done a good job of building an investment portfolio over the course of his career, with variable – sometimes unpredictable – income. Entering retirement, he was finding it just as nerve-wracking trying to figure out how best to use his portfolio to meet his retirement income needs and without having to pay large amounts in taxes each year. He was referred to us by a friend and wanted to know if we could help create and implement a tax-efficient plan for meeting his retirement income needs. We met with him to better understand his retirement lifestyle and aspirations. He intended to continue playing the acoustic guitar in a band with his friends and travel to see family. He had a smaller mortgage and intended to remain in his home as long as possible. Beyond that, he anticipated needing to purchase a new car in the near future and he wanted to help pay for his daughter’s wedding. His investment portfolio was a combination of qualified and non-qualified assets. And, he had not yet drawn on social security. We were able to create a plan based on his retirement income needs and goals that illustrated withdrawals from his portfolio and the tax impact. (We have updated the plan once already, reflecting more accurate retirement spending and a larger anticipated gift to his daughter for her wedding.) We were also able to help him understand his options with respect to social security and determined that waiting to age-70 for his maximum benefit was best. We are now helping with a review of his estate plans to make sure that they correspond with his wishes to leave money to his kids and the friends with which he has enjoyed making music for almost two decades.

*These do not represent actual client experiences rather demonstrate a hypothetical client relationship and how The King Cruse Bitter Group can serve clients unique situations.