A recent experience by a new Meld Financial client inspired our team to develop this case study and share it with you. Our hope is that anyone else in this situation might read this study and experience the joy and surprise that these clients felt on this day.
Case Study Rationale – Why study and share this situation?
For the purpose of this study, we will refer to this family as John and Jane Smith. Generic advice from several trusted sources led the Smiths to conclude they would need to continue working multiple jobs and saving for around five more years to achieve their retirement goals. They were both already at retirement age, so this was troubling news. Little did the Smiths know, they were in for a huge surprise – a surprise that we believe might apply to many of you as well.
In this case study, we will explore the events and details that led our clients to their incorrect conclusion. Then we will describe how our Financial Fingerprint® process analyzed their unique situation to determine how much they need in savings to meet their goals. Finally, we’ll share the reaction when they learned they could meet their goals in less than five years. In fact, they were in a position to retire today! As a valuable bonus, we will tell you how you can get your complimentary Financial Fingerprint® to find out if you might be in a similar situation to the Smiths’.
Here are the three main goals for this study:
- Expose the Pitfalls of Generic Financial Advice (e.g. Rules-of-Thumb)
- Emphasize the Importance of Individualized Financial Advice
- Provide You with the Tools to Know When You Can Retire with Confidence
The Clients: A Couple Working Hard to Save For Retirement
The Smiths came to Meld Financial after they were disheartened by the (supposed) reality that they needed to work for five more years to retire comfortably. Fortunately, a trusted friend recommended they get a second opinion about their retirement savings.
John and Jane were both aged 65, and they had about $1.2 million in combined retirement assets. They were working and saving aggressively – despite having reached the standard retirement age. John was even working two jobs and contributing to two retirement plans to try and reach their savings goal.
The Problem: Generic Guidance Led to Unrealistic Retirement Savings Goals
The Smiths had previously attended a seminar on retirement planning hosted by another advisory firm. The presenter shared general “rules-of-thumb” and some client “savings averages” that had become the basis for their retirement plan.
According to the generic guidance they received from the seminar, the couple believed they needed between $2 and $3 million to retire comfortably. They planned to work until at least age 70 and continue saving as much of their salaries as possible to reach that threshold.
The Solution: Financial Fingerprint® Provided A Personalized Retirement Plan
The Smiths contacted Meld Financial to get the second opinion they sought on their retirement plan. At that point, they scheduled a meeting a Meld advisor. We listened to their worries and began asking questions to better understand their lifestyle and goals.
In about an hour, we worked together to review their investments, estimate their retirement expenses, and quantify their guaranteed sources of retirement income – paying close attention to their various retirement accounts and government benefits from Social Security. We analyzed this information and presented their Financial Fingerprint®, Meld Financial’s proprietary retirement planning program.
At this point, the Smiths began learning news that would literally change their lives. Given their Social Security income and estimated retirement expenses, the Smiths’ situation meant their current savings would only need to generate a 3% annual return to provide the income they needed to meet their retirement goals. We call this figure your Required Rate of Return™ [RRoR™] and it is the key to understanding if retirement is feasible for you at any given time.
For the Smiths, a 3% RRoR™ was more than attainable. This meant they didn’t need $2 to $3 million in retirement assets as they had originally thought. Instead, they had already reached the finish line – they could retire today!
The Outcome: An Earlier Retirement and More Time for Travel
The Smiths were delighted to learn that they had been rewarded for their hard work and dedication to saving for retirement. They decided to continue working a little longer to pay off the remainder of their mortgage and build a travel fund so they could enjoy retirement to the fullest. Best of all, John was able to drop one of his two jobs – and cut his stress in half.
With their Financial Fingerprint® in hand, the Smiths were now confident they could achieve their dream retirement on their terms. The fact is, Financial Fingerprint® changed the Smiths’ lives in about an hour, and it could do the same for you!
Get Your Financial Fingerprint® To Learn If You Are Ready To Retire NOW
If you think retirement is a distant or unattainable goal, contact our friendly team for a second opinion. In about an hour, you’ll have your Financial Fingerprint® and a plan to approach retirement with confidence.
At Meld, we have been helping clients achieve their retirement goals for 40 years. Our team of tax, legal, and investment professionals has the experience to bring the most important aspects of your finances together and let you know if you’re ready for retirement today!
For more information about Financial Fingerprint® or to schedule an introductory meeting with an experienced advisor, contact us today.
This testimonial was given by a current Meld client. Meld did not compensate them directly or indirectly for the testimonial provided herein. The rate of return needed is based on the client’s specific situation and the results achieved do not guarantee future investment results.
