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How We Helped A Couple Organize Their Finances And Retire With Confidence

How We Helped A Couple Organize Their Finances And Retire With Confidence

| April 07, 2021
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We recently met with clients who were experiencing some uncertainty surrounding their wealth management plan as they approached retirement. This couple had been our clients for five years and were wanting to retire in six months, which was before the age of 60 for both. They were married and had no children in the home. 

They had specific questions about whether they could retain their lifestyle if they retired early. They were hoping to start enjoying retirement as soon as they turned 60. They met with Bridgerland Financial asking if retiring early was even possible given their retirement plan. Would they have enough cash flow to pay for healthcare? And did they have enough invested so that it would last throughout their retirement? 

How We Helped 

When we met with this couple, we took a look at their entire financial outlook. Did they have any credit card debt or did they have any outstanding tax issues that they would need an influx of cash for? Did they have a proper plan in place if one or both of them needed long-term care? Did they invest sufficiently and appropriately for their retirement? We had to examine all these attributes to see if the couple could retire at the age of 60. 

Withdrawal Strategy 

When a client comes to us asking these questions, one of the first aspects we look at is their withdrawal strategy into retirement. In this particular case, we needed to make sure that the couple could withdraw an income to bridge a gap between retirement at age 60 and when they should start collecting Social Security. 

As you probably are aware, it is better to wait until your full retirement age, or even age 70, to collect Social Security. Collecting Social Security too early can result in a reduction of your payout permanently, while waiting until age 70 will give you an annual increase of 8% per year past your full retirement age. (1)

Ultimately, we developed a withdrawal strategy that took into account this couple’s healthcare insurance premiums and other healthcare costs. It also took into account the couple’s pension plan and investment accounts. The withdrawal strategy enabled them to bridge the gap years between retiring at age 60 and the age they started collecting Social Security. This will allow them to maximize their Social Security benefits throughout their life, without putting too much of a burden on their pension plan and investment strategy.

Insurance And Healthcare 

This couple was also concerned about being appropriately insured if one or both of them needed long-term care. About half of 65-year-olds today will develop a disability and require long-term care. While most of these people will need services for less than two years, about 14% will require long-term care for more than five years. (2) Needless to say, this is an important factor to discuss with people approaching retirement, especially because normal healthcare does not cover long-term care. 

The couple decided to purchase a long-term care insurance plan that offered coverage in the event of needing this type of assistance. This is a wise choice because this type of insurance can help protect your savings from being unnecessarily depleted due to costly long-term care assistance.  

They also wanted to make sure both partners would have healthcare insurance coverage if one of them died before they were eligible for Medicare at the age of 65. We referred them to an estate planning attorney, who effectively helped them navigate this issue.

Questions? We’ve Got Answers 

By implementing our tools and strategies, these clients were able to retire with confidence at an age that made sense to them. At Bridgerland Financial, we help our clients create wealth management plans that may support their lifestyle into retirement. If you have questions about how we can help you, schedule an appointment online or reach out to us at or (435) 535-1630. 

This client example represents a composite illustration and should not be construed for a guarantee of similar retirement planning results. Investments in securities do not offer a fix rate of return. Principal, yield and/or share price will fluctuate with changes in market conditions and, when sold or redeemed, you may receive more or less than originally invested. No system or financial planning strategy can guarantee future results. 

About David

David Packer is founder and financial advisor at Bridgerland Financial, an independently managed financial firm in Utah. With 20 years of industry experience, David serves his clients by helping them bridge the gap between their working years and their retirement. He provides tailored, comprehensive financial plans to his business owner and individual clients so they can retire with confidence. David has a bachelor’s degree in finance and holds the Chartered Retirement Planning Counselor℠ (CRPC®) credential. Outside of the office, David loves to spend time with his wife and five kids and stay involved in his community. He currently serves on the board of directors of the Cache Valley Chamber of Commerce. He and his wife, Melonie, spent years as foster parents and eventually adopted their foster children. David loves playing and watching all kinds of sports, including officiating high school sports, and won’t turn down a good board or card game. Learn more about David by connecting with him on LinkedIn. You can also register for his recent webinar, What We Do & How We Help here.




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