Linda

Occupation: Freight Company HR Employee

Age: 62

Primary Goal: Determine financial readiness for retirement

Name: Linda

Primary goal: Determine if she was in a position to retire today, and if not today, when might that be.

At 62, Linda was nearing the end of a long and fulfilling career in the freight industry. She had worked for various freight companies over the years, but recently, the constant acquisitions by private equity firms had worn her down. Linda no longer found joy in her work and wanted to know if she and her husband could afford for her to retire. Unsure about her financial readiness, Linda sought the help of PFG to evaluate her situation and make an informed decision. She had some cash savings, a 401(k), and various other investments, but she needed clarity on whether these assets, along with Social Security, would be enough to support her and her husband’s lifestyle in retirement.

How PFG Helped Linda Achieve Her Goals:

Comprehensive Financial Assessment: The first step was to evaluate Linda and her spouse’s complete financial picture. PFG reviewed her and her husband’s savings, investment accounts, and anticipated Social Security benefits. We also worked closely with Linda to understand their goals and priorities, their monthly spending needs, factoring in any future expenses such as healthcare costs and travel.

Social Security Optimization: Linda was unsure when she and her husband should begin taking Social Security benefits to maximize their income. PFG ran multiple scenarios to determine the optimal time for each of them to claim Social Security, ensuring they would receive the highest possible benefit without depleting their savings too quickly. After finding the optimal age to take social security, we also talked with her about her feelings towards social security and how her health, longevity, and goals plays a part in deciding when to start social security.

Retirement Feasibility Plan: Using her current assets, PFG created a customized retirement plan for Linda and her husband. We projected their income, expenses, and investment growth, showing Linda that, if she desired, she could comfortably retire right away. This news gave her the peace of mind she needed to make the decision to leave her job.

Investment Strategy for Retirement: After deciding to retire, Linda consolidated her various investment accounts under PFG’s management. We helped her transition to a more moderate investment strategy designed to preserve her wealth while still allowing for growth in retirement. By streamlining her accounts and simplifying her portfolio, we ensured that Linda’s finances were aligned with her retirement goals.

Ongoing Financial Guidance: Although Linda was ready to retire, she still wanted guidance on how to manage her finances during this new chapter of life. PFG worked with her to create a sustainable withdrawal strategy for her investment accounts and worked towards a strategy of reducing future required minimum distributions, ensuring she would have consistent income in retirement while also accounting for inflation and unexpected expenses.

The Outcome:

A few months after consulting with PFG, Linda decided to retire, knowing she and her husband were financially secure. With a clear understanding of her financial picture, Linda was able to confidently leave behind the stresses of the freight industry and focus on enjoying her retirement. By consolidating her accounts with PFG, Linda benefited from a cohesive investment strategy and ongoing financial advice, giving her confidence in her future. She now enjoys her retirement with the assurance that her financial plan is tailored to her needs, allowing her to live comfortably and on her own terms.

Case studies may not be representative of the results of all clients and are not indicative of future performance or success.