Below are several stories that illustrate the ways WPC helps clients navigate complexity, and create sustainable solutions for financial security. Over our years in service to clients, we have gained many experiences that are useful in helping create effective strategies for almost any situation – including yours!
When Can I Retire?
Walter felt he was close to retirement, but was unsure if his savings would be enough to finally let go. To help his decision making, WPC was able to prepare multiple inflation- adjusted, after-tax income scenarios to help him forecast his target date. Ultimately, we were able to get him comfortable that he would soon have enough income potential from his portfolio to live the lifestyle he envisioned. Understanding the variables of taxes, inflation and healthcare are critical in building a sustainable retirement budget.
WPC uses its forecasting model to provide both wealth accumulation and future cash flow analysis for its clients. The benchmarking that is generated by the plan gives clients an easy to read report card, in real time, on how they are progressing toward their goal.
Income for Life
John was offered severance from his corporate position in 1995, but didn’t know how his lump sum retirement rollover was going to produce enough income to last the next 20 to 25 years. Working with WPC on a long term plan, a tax savvy withdrawal program was created that has produced an income that has grown over such volatile periods as the dot.com bubble, 9/11 market slide and the Great Recession of 2008. As of today, John and Sally have spent close to twice what they originally started with, and have grown their nest egg to enjoy an income almost 50% higher than the day they retired.
John’s and Sally’s ability to endure the many market swings and remain invested according to a long term plan, has allowed them to travel to places they never dreamed they would see. Their story is an example of what makes WPC unique – we have over 20 years of experience producing sustainable retirement income for clients.
Suddenly, I’m on my own
Jane came to us when she suddenly lost her husband of 41 years. Matt had always handled their investments, paid their bills and taken care of taxes. In the midst of grieving her loss, Jane was now overwhelmed by trying to figure out his system for using their IRAs, calculating estimated taxes and balancing the monthly budget. After a friend referred her to us, we were able to help her consolidate multiple accounts, create a simplified, more manageable system for income and expenses, and take the guess work out of taxes. She has since learned more about finances than she ever expected, and has confidence that there is a system in place for her to continue to manage her financial affairs.
WPC encourages couples to have a durable plan in place so the unexpected does not require either to make difficult or rash decisions in a crisis. Not only having a plan, but understanding how it works, is how WPC builds lasting confidence for our clients.
The Sandwich Years
When the desire to help your kids afford college and the needs of aging parents intersect with your own retirement savings efforts, many people find it difficult to strike the right balance. Preparing financially for one of these events is significant by itself, but making sure you are maximizing all three can be a monumental task. That’s where experienced guidance can lend a hand to craft strategies to optimize the use of the available resources.
The sooner you look to address the issues, the more time you have to create a positive outcome. Having helped clients facing all of those financial hurdles at once gives WPC the perspective to help clients make the necessary choices.
Helping Mom and Dad Decide
Kelly and Jenny became worried about their parents’ finances when their mother was diagnosed with dementia. Their father, Bob, had accumulated a modest amount of wealth in retirement accounts and owned their real estate outright, but everyone was unsure what would happen as Eileen’s care needs evolved. Bob felt their budget was ok for now, but didn’t know what the future might look like given the rising cost of long term care. With our financial planning tools, WPC was able to illustrate multiple scenarios and provide certainty for their ability to transition to an assisted living facility and maintain their income producing assets.
The tools proved so valuable to seeing the long range financial future, both daughters have now also joined as WPC clients and are tracking their progress toward retirement. In addition, they have taken proactive steps to model additional savings for their future healthcare needs.
Apple Tree EconomicsTM
When parents talk about the potential of providing an inheritance, their first concern is “are my heirs prepared to inherit?” Often the generation that produces wealth is skeptical that the sacrifices they made in life are not being made by the next generation to realize the financial security necessary for retirement. So how do you pass along the financial wisdom and principles that created your success?
WPC has developed a unique generational wealth planning discussion designed to educate those who may inherit – we call it Apple Tree EconomicsTM. Simply stated, wealth can be viewed as an apple tree. If you wisely choose to only eat the apples, and otherwise care for the tree, you can enjoy the fruit for years to come. Those who unwisely use a limb of wood from time to time, forever damage the trees’ future harvest. This simple conversation starter can open a family’s opportunity to create a legacy for generations to come.