Harry and Lynn Case Study
The Clients and their Challenges
Harry and Lynn are a married couple that have found themselves living off investments from their individual IRA’s and a joint trust account. Harry, 65 and Lynn 62, recognize that changes to their lifestyle are inevitable down the line but would really like guidance in how to identify the changes that need to be made.
They are trying to wait as long as possible to take social security but are worried they will eat through their investments too quickly. They would like guidance in trying to reduce their taxes, as well as adjust their spending habits to fit their new income.
The Solutions
- Our first step was gathering all necessary information about Harry and Lynn’s current expenses and using our planning software to outline a roadmap to align their goals.
- We then used our social security analyzing software to calculate when the best time to start withdrawing from social security would be for each of their individual situations.
- Once all the other pieces were put together, we were able to determine that a ROTH conversion would be the best option for them.
The Results
After analyzing their current budget, we were able to identify overspending in certain areas and reallocate those funds to better fit their end goals. This gave us a more accurate idea of what their situation would be like when they each hit full retirement age and gave us confidence when deciding when to start withdrawing from social security.
Finally, we implemented a ROTH conversion strategy to potentially decrease their future tax liability.