Case Stories
Retirement Spending | Company Stock | Education Funding | Saving vs. Spending
Case Story: Retirement Spending
The situation:
A couple nearing retirement needed a spending strategy that would allow them
to maintain their lifestyle, help their children and grandchildren, and make
charitable donations—without fear of outliving their assets.
How we helped:
We started by examining the couple’s retirement plan savings, taxable
investments and employer pension. After consulting with the retirement plan
administrators about payout options, we determined an optimal order for tapping
the assets that minimized the tax implications. Then we devised a spending
plan that enabled the couple to meet their retirement and gifting goals, while
reducing the risk of asset depletion during their lifetimes. Finally, we fine-tuned
their portfolios to generate ongoing income and maintain growth—as well
as purchasing power—over time.
Case Story: Company Stock
The situation:
A man in the middle of his career held stock options and participated in the
employee stock purchase plan (ESPP) at a Silicon Valley company. His holdings
represented a considerable portion of his retirement savings.
How we helped:
With most of his savings tied to his company’s stock price, our client’s
portfolio was exposed to excessive risk. We consulted with his accountant and
the ESPP administrator at his company to develop a tax-efficient strategy for
exercising his stock options. With the proceeds from the sale of his company
stock, we designed and implemented an investment plan to diversify his assets,
reduce his risk and continue to take advantage of his company’s ESPP.