Dave and Jenny

Step 1

Our focus with Dave and Jenny was creating a financial plan showing what it would look like to retire at different ages. We did a what-if analysis that showed probabilities of success of retiring at age 62, 65 and 67. Our initial plan for them both retiring at 62 showed a 60% probability of success, 68% if they waited till 65 and 76% probability of success if they waited till 67.

Step 2

We like to see clients in what we call the confidence zone which is 75-90% probability in most cases, so we discussed their budget and their ability to save more for the next 10 years to achieve a higher probability score for retiring at 62. We gave the client an idea how much more they would have to save to achieve early retirement.

Step 3

Since Dave and Jenny were in their early 50’s, we discussed their risk tolerance and discussed an investment portfolio to match their risk and stage of life.

Step 4

We took over the management of their current 401k’s through our partnership with Pontera. Because most advisors cannot give advice on 401k’s per industry regulations, Dave and Jenny felt more comfortable having us manage their 401k plans to make sure they were invested properly now and as they approach retirement.

We then created a taxable investment account to start investing $1000/ month and recommended they take advantage of the catch-up provision in their 401k’s which allows them to invest an extra $7500 in their 401k plans if they are over age 50. These changes increased the probability of success for retiring early from 60% to 84%.