It is common to accumulate multiple retirement accounts over the course of your career. However, too many accounts can complicate your financial picture to the point where it’s nearly impossible to know where you stand.
Two of our clients learned this lesson the hard way. Fortunately, they sought our help in organizing their retirement plan, and now, they are on a clear path to their dream retirement.
This case study will cover their initial situation, the adjustments we helped them make, and how you can avoid similar complications in your own financial plan.
Rationale: Why Study and Share This Particular Situation?
Over the course of a long career, many people will accumulate multiple 401(k)s from different employers. Those who are serious about retirement saving may also open supplementary brokerage accounts, Individual Retirement Accounts [IRAs], and more complex products like annuities.
While all these types of accounts can serve a purpose, having too many makes it extremely difficult to manage a unified financial plan. Further, it becomes increasingly challenging with each account to understand what you have saved and if it is enough to retire.
About the Author:
I’m Blake May, J.D., CFP®, Partner at Meld Financial, and I was recently able to help a couple make sense of their numerous accounts and understand their complete retirement picture. By sharing their story, I hope to help you:
- understand the dangers of an overcomplicated financial situation.
- gain the tools to streamline your retirement plan and earn peace of mind.
The Clients: A Couple Overwhelmed by Numerous Retirement Accounts
For the purposes of this case study, I will refer to the clients as Jane and John Doe. When I met the Does, they were both in their mid-sixties and had worked hard to save for retirement.
Jane was eager to retire as soon as possible while John planned to work two more years. Even though Jane was mentally ready to retire, she and John weren’t sure they were financially prepared.
The Problem: Too Many Accounts Made Retirement Planning Difficult
Over the course of their careers, the Does accumulated nearly 20 investment accounts – including multiple annuities. This situation made it extremely challenging to maintain an organized investment allocation or to simply understand everything they owned.
As they neared retirement, the Does weren’t sure how to allocate their investments in a way that would generate retirement income or from which account to withdraw the money they needed. In short, their financial picture was too complicated, and they needed to simplify.
The Solution: Financial Fingerprint® Provided A Streamlined Investment Plan
I met with the Does to discuss their financial picture – including income, expenses, and investments. After learning of their complex array of accounts, I took the time to review each one and contact the insurance companies to gather the relevant details for their annuities.
Once I had a clear understanding of their financial situation and their goals for the future, I developed their Financial Fingerprint® with the support of the team of financial, tax, and legal professionals here at Meld Financial. This proprietary wealth management program brings together the most important aspects of a successful retirement into a single, easy-to-understand plan.
During this process, Meld’s Social Security and Medicare Specialist worked with the Does to understand how these programs fit into their plan. They reviewed government benefits in detail and developed an estimate for healthcare and potential long-term care costs in retirement to complete their Financial Fingerprint®.
Supported by the data in their Financial Fingerprint®, I delivered the good news that Jane was able to retire on her preferred schedule! I also helped the Does consolidate their investments into just 5 accounts with a unified investment and withdrawal plan. Once they approved that plan, I deployed it across their accounts – including their annuities – to ensure their investments were allocated according to their goals and risk tolerance.
The Outcome: A Simple to Understand Plan and A Comfortable Retirement
The Does were relieved to learn that their hard work and dedication to retirement saving had paid off. Jane officially retired in June and has been enjoying retirement free of financial stress. Since that time, both John and Jane have let me know that they feel much better about their new cohesive financial plan and investment allocation.
Without Financial Fingerprint®, the Does would have been in the dark about their financial picture and their investments would have continued to be allocated haphazardly. Thankfully, they chose to contact Meld Financial, and they are now confident in their financial future!
Do You Need to Streamline Your Retirement Plan? It only takes about an hour with Financial Fingerprint®.
At Meld Financial, our team will help you understand your financial situation and develop your Financial Fingerprint® and it only takes about an hour of your time. This nimble plan brings together the most important aspects of your retirement plan including income, expenses, and investments. The information you receive is organized in a way that’s easy to understand – even if you don’t have a financial background.
When you partner with Meld, our team will support you until your transition to retirement and throughout your retirement years. The first and most important step is getting your Financial Fingerprint®, so contact a member of our team to get started 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.
