Career: Data scientist
Louis has spent his entire career in tech and has been heavily rewarded with company stock and a substantial income. As his career winds down, he wants to get a plan in place that can accommodate his travel and philanthropic goals while ensuring that his wealth is being used effectively.
He went through a divorce about a decade ago, but has continued to invest and build up a healthy retirement portfolio. His two adult children are now independent and he has time on his hands to pursue the retirement that he's always dreamt of.
Louis knows that he's done a lot of things right, but he wants to work with an experienced professional to make sure he's taking the appropriate retirement steps and not leaving money on the table. Given his high income ($750,000/year), Louis has to take into consideration what he wants his retirement spending to look like as he'll no longer have earned income, only passive income from investments.
He's debt-free which has allowed him to invest often, and it now provides him with cash flow flexibility. He wants to buy a condo in Hawaii, but is unsure if that's the best use of funds.
One of the biggest areas to be addressed is a retirement income and investment plan, which will take into consideration the taxation of different investment accounts and social security benefits.
After working with Collabria, Louis received a plan that not only addressed his concerns, but answered questions that he didn't know to ask. His plan included:
• A cash flow plan to address the concern of losing earned income and living off of investment income
• A multi-bucket investment strategy to address the need for security as well as growth
• A mega back door Roth conversion strategy to maximize tax deferral and tax-free distributions
• Stock diversification strategy
• Healthcare options & timing
• Social security claiming
• A stress test for potential adverse scenarios
Louis now has the confidence and clarity he needs to finish out his career and transition into the next phase of life. He has comfort knowing that if anything within his plan changes, he has direct access to his financial planner to ask questions and get answers.
(Note: These are derivative scenarios and do not involve any specific Collabria clients)