Selecting the Right Pension Payout
May 13, 2013 | By austinwealth
Meet Ken (67) and Anne (62). Ken was a successful technology consultant who retired 5 years ago. Anne has worked for the State of Texas for 37 years and is considering joining Ken in retirement. They have a daughter with two children who lives nearby in Austin and a son with a newborn baby that lives in Dallas.
We sat down with Ken and Anne to discuss strategies to ensure that they can meet their retirement goals. During our discussion, the following things became clear:
- They want to spend some money over the next 2 years to improve the landscaping of their home.
- They want to spend as much time as possible with their grandkids.
- They want to ensure that they have enough money to live comfortably in retirement.
- They want to review their options with Anne’s pension with the State and maximize their retirement income.
- They don’t feel like they have the expertise to manage their own investment portfolio but don’t feel like their current investment advisor is very responsive to their needs.
With these points in mind and after a thorough review of their income sources, current expenditures and assets, we discussed options to improve their financial situation and help them achieve their retirement objectives. After conducting our retirement analysis, we determined that Anne and Ken should have plenty of money to sustain their current lifestyle through retirement as long as the appropriate option was selected for Anne’s pension and the investment assets were positioned appropriately.
We also agreed that we would manage their retirement assets, proactively check in with them every quarter, and help them manage their retirement distributions. This has given Anne and Ken the time they had hoped for to spend with their family. They’ve even been able to complete the landscaping improvements at their house. Now that everything is on track for them, they appreciate the peace of mind their ongoing relationship with us provides them.
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