A married couple, A and B, 62 and 67, respectively, are looking to retire, but feel they have not saved enough. Spouse A brings in $70,000 and spouse B brings in $44,000. Social Security Income is estimated to total $55,000 annually combined. Their current living expenses are $64,000 not including taxes. In the near future, they would each like to purchase a new car for $20,000 each and remodel their kitchen for $30,000. They have $100,000 in an emergency fund, $250,000 in retirement accounts, and recently funded a brokerage account with $50,000. Their financial plan estimates running out of income 3 years prior to death, with sharp declines in assets in the preceding years. Their asset allocation is currently 25% cash, 45% bonds, and 30% stocks based on their conservatives nature. Spouse A is planning to retire at the end of 2020. Spouse B is planning to retire at age 71.

After discussing the situation, the clients have expressed a desire to maintain the status quo. They know they haven't saved enough and do not need to travel or leave a legacy. They do not expect to be in the greatest of health forever based on family history and do not want to be working until they die. How do you coach them through these next 3-5 years. Should they make any changes to their investments? Is there anything they can do from a cash flow perspective to increase their changes of success?