Case Study: Retirement Balancing Act

Retirement Balancing Act case study

The Client

Throughout their career, one couple diligently contributed to their workplace retirement plans as much as they could to develop funds they could tap into for their retirement. Both were in their late 50’s and nearing retirement, the couple’s goal was to retire within the next decade with a sufficient source of income.  This case study showcases how LRVS Advisory Group helped the couple prepare for retirement with confidence.

For optimal retirement planning, the couple sought to recreate their income of $150K per year after tax yet recognized a gap between their ideal retirement income and the income they would generate from pensions and social security.

The Dilemma

The couple had a few questions for LRVS Advisory Group, as well as goals for their retirement years:

  1. When do we start collecting from Social Security?
  2. How long will our money last?
  3. Which accounts do we take distributions from and when do we take them?
  4. What are the tax implications from collecting distributions?
  5. Which funds do we sell in order to cover monthly expenses?
  6. What is a sustainable withdrawal rate?
  7. How do we create a consistent income during a volatile market?

The Approach

The goal was to help the clients develop a financial plan that would create financial stability and freedom in their retirement age for a successful, enjoyable, and worry-free retirement. LRVS applied a three-pronged approach to this client’s situation to help them achieve the financial goals they were striving for. Despite the challenges identified, the advisor created a financial plan to solve for the gaps that needed to be filled in their income. The strategy began by differentiating needed income (covering the costs of food, housing, medical bills, etc.) from the income they wanted (funds for luxuries like vacations, travel, gifting, etc.).

The first aspect LRVS addressed was short-term needs, which would be covered by cash and cash alternatives, with enough to cover expenses over at least a 6 month period, including after-tax expenses.

Secondly, LRVS developed an income bucket to fulfill the client’s annual desired income. The advisor analyzed their sources of income to determine their expected income from sources like social security, pensions, or rental income. This income was in a protected bucket, safe from any market downturns.

Lastly, LRVS helped the client to develop a growth-oriented bucket designed to meet future retirement needs, health care costs, inflation protection, and estate planning. With this plan, the client was able to successfully allocate funds to cover immediate and long-term retirement monetary needs.Through this analysis, the advisor was able to identify the remaining gap in the client’s income. LRVS then helped them to plan to fill this gap through their employer plans, IRAs, and brokerage accounts.

The Outcome

LRVS determined that the couple’s desired retirement spending goal was $150K per year after tax. The husband and wife were to both have $25K per year, after tax, in social security income, for a total of $50K for the couple, plus the husband’s extra pension of $10K per year, after tax. Identifying this income enabled LRVS to determine that the couple had an income gap of $90K, plus considerations for medical expenses and inflation. The advisor’s strategies helped to close this gap and develop the necessary income to enable the couple to live the lifestyle they wanted throughout their retirement.

The advisor helped the client cover short-term needs by placing $80K into a cash reserve that would cover at least 6 months of expenses. For long-term needs, the advisor identified that the couple had $2.5M in total investment assets. Of these funds, ear marked for retirement, the advisor moved $750K into a future income-producing investment to eliminate the income gap and moved the $1.75M remaining into a diversified portfolio designed to offset additional unexpected costs, medical bills, and inflation.

Through the advisor’s short and long-term financial strategies to maximize retirement income, the clients were able to solve their income gap and reinvest their retirement funds to plan for future expenses, so that they can comfortably enjoy their retirement without having to sacrifice any of their wants, cover all their needs, and still maintain their current lifestyle. LRVS looks forward to helping more clients meet the financial goals they have set for any stage in their lives.

Talking to an LRVS advisor about your financial goals is the first step towards a path of custom direction to achieve those goals. Visit our website at to schedule a complimentary meeting today to learn more about what the team can do for you.

Retirement Income Breakdown
Retirement Planning Case Study

Retirement Balancing Act Case Study

Retirement Balancing Act Case Study

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