I Recently Experienced a Financial Windfall
Retirement Scenario
Kate (59)
Inheritance and Early Retirement
An unforeseen opportunity has changed my financial picture. How do I use it to create and secure a future for myself and my family?
Congratulations. If you’re reading this it’s likely that you’ve done the right things to put yourself in a good place to retire. You may not feel that way now. That’s normal. Many of our clients don’t feel that way either at first. But after working with us to envision and create a well-planned retirement, they feel confident and excited about their futures. (Well-planned does not mean this is going to be hard. We don’t think it will be.)
In this example, Kate’s parents left her with an inheritance. Kate always had an idea that she’d probably receive something from her parents, but this was a surprise. She wants to make sure she’s a good steward of this money and makes wise choices with it. She’d like guidance on what’s the best use of this money, including possibly adding it to her retirement funds.
Background:
Kate, age 59, recently received an inheritance and wants to explore the idea of retiring sooner than she had planned.
She is an administrator at a local university and had originally planned to retire at around age 67. Her mother recently passed away and her parents’ estate has now been passed to her with an inheritance of around $800,000 in investments and savings. Kate had saved around $350,000 in her own retirement accounts and has $50,000 in other savings. She will also have Social Security and a small pension from the university but will not be eligible for either for several years.
Kate is concerned that if she retires early, she will lose her health insurance. She also is concerned that her income from Social Security and her pension will be less because of taking them early. She has a dream of starting a photography business and would also like to reserve some capital to start that, as well. Kate wants to know if retiring early is possible and what it would mean for her.
After getting to know Kate, Hunt Country Wealth Management will design a Sovereign Series™ Retirement Plan with Guided Investing™ advice with the following goals:
- Understand the pros and cons of retiring now versus later.
- Guidance on if retiring now is realistic based on facts and retirement planning best practices.
- Understand the investments she inherited – risk levels, taxes, etc., and how they might fit into her financial plan.
- Understand her pension eligibility and how retiring early may affect her retirement benefits.
- Explore the possibility of funding her new business venture
Analysis for retiring early would include how to:
- Defuse the risk of a bad stock market derailing their retirement.
- Optimize their Social Security and their pension plan.
- Preserve their principal.
- Protect their standard of living against inflation by planning for a rising income for 30 years of retirement and beyond.
- Plan for health insurance costs until they reach age 65 and qualify for Medicare.
- Show exactly which retirement savings accounts to use first, when and how.
- Create a system for how their income will be directly deposited in their bank account and taxes will be withheld.
Expected Results for Kate:
- Kate knows if retiring early is a wise decision.
- She knows the tradeoffs of retiring early versus waiting.
- She knows how much income she can expect.
- When she does retire, whether early or at her original retirement date, she will have confidence that she made an educated decision based on facts.
- She will know she was a good steward of her inheritance.
- With HCWM by her side, planning was easier than she thought.
Read Additional Scenarios:
Retirement Scenario | I’m Ready to Retire
Retirement Scenario | I Plan to Retire Early
Retirement Scenario | I Plan to Retire in Three-to-Five Years
Retirement Scenario | I Recently Lost My Spouse
Retirement Scenario | I Have a Dependent Child
Our Services
Looking for retirement assistance? Look no further! At Hunt Country Wealth Management, we specialize in retirement planning. We offer two services tailored to your needs as you approach retirement. Our Retirement Audit™ is a quick way to find out if you're on track and help you prepare. The Sovereign Series™ Retirement Plan is a comprehensive in-depth financial plan that provides a roadmap to transition into retirement with confidence. Not sure which service you need? We can help with that too.
This service was designed for those who want to...
- Feel confident and prepared for retirement.
- Know the amount/regularity of income your resources can produce.
- Have control over your financial future and clarity of direction.
Looking for better control over your investment strategy? Align your investment portfolios with your goals using our exclusive Guided Investing™ service. Our comprehensive investment management helps you create a strategic plan, with tailored strategies to optimize and preserve your resources. It starts by identifying your goals and can be personalized for retirement, wealth building, risk management, or multiple objectives. Feel supported and empowered as you make progress towards your financial milestones.
This service was designed for those who want to...
- Feel more confident in their investment decisions.
- Design a strategy to reach planned financial milestones such as retirement.
- Collaborate with a professional to manage risk and monitor performance.
Are you interested in discussing a unique financial situation? If you have any general financial or investment-related inquiries and prefer a collaborative approach to address them, we would be delighted to assist you. Our Hunt Country Hourly Planning™ service offers financial advice on an hourly basis, without minimum asset or income requirements. With tailored recommendations and insights from our experienced professionals, get answers to your questions and valuable guidance.
This service was designed for those who want to...
- Gain clarity on intricate financial situations with professional guidance.
- Make informed decisions on personal finances, investments, or estate planning.
- Access financial advice as needed.
We believe retirement should free you. It all starts with a plan.
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