Successful retirement planning examples

Here's how we helped three clients. (We don't include their names, but we of course asked their permission even to sketch their cases in this way.)

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Have we asked all the “right” questions?

A couple told us they'd been working on their retirement planning for two years and wondered if they had asked all the right questions in thinking about it. (A natural worry, because people get "too close" to their own analysis and they sense that handicap.) We suggested two adjustments in their expense details, one change in their income details, and worked out two minor changes in their long-term goals. Result: we saved them money and made it easier for them to meet their retirement goals. They retired in December 2001 and did it with peace of mind.

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For health reasons, I need to retire soon and slow down!

A couple wanted to retire in six years. He was 49 years old, the sole family income provider and he was tired. He wanted to “see the world,” relax on a beach and slow down his life. (His doctor told him he wouldn't live a long life unless he changed his ways.) When we analyzed his portfolio, it was clear that the couple wouldn't have enough money to do what they wanted in retirement. However, if he contributed an extra 3.5% to his 401K, they would have enough money to retire in six years. He changed his way of working so he'd have less stress for his last six years and boosted his 401K contributions by the amount we calculated.

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I've never handled our finances but now I've got to. It scares me.

A woman told us about her husband's recent passing. She was in mourning, and spoke to us through tears. In her grief, she also had the burden of handling the household finances — something her husband had always taken care of. Over a period of weeks, we took her in stages through all the household accounts, making sure she itemized all her expenses. Then made sure she knew all her sources of income, understood her investments, and that she wrote to Social Security and filed all the right claims. We worked out a complete retirement plan and left her with a clear and reassuring picture of her financial future.