Summary of Balance Sheet: Checking/Savings- $35,000 Taxable Joint Brokerage Account-$300,000 (basis $150k) Frank's 401k-$300,000 (fully maximizes and receives a 4% match) Frank's Traditional IRA - $700,000 Paula's 403b-$400,000 (fully maximizes and receives a 4% match) ***Overall "household" asset allocation is roughly 85% stock, 15% bond*** . Home - $650,000, with $100,000 mortgage (8 years remaining at 4%) No other debt besides the mortgage (they lease both vehicles) Summary of Fixed Income Sources: . Frank Social Security - $36,000/yr at full retirement age of 67 Paula Social Security - $25,000/yr at full retirement age of 67 Pension - None for either Below are the questions we'll discuss together as a group: 1) Have they accumulated enough to support their income goals ($10k/mo net and $15k/yr travel goal early in retirement)-is age 65 a realistic retirement date? 2) How would you re-create Frank and Paula's retirement income paycheck until they reach RMD age of 72? 3) Should they pay off their mortgage now or prior to retirement? 4) Do they need insurance of any kind at this point in life? What type of policy and coverage (if any) do you feel could make sense? 5) Fixed retirement income sources - please share high level thoughts surrounding Social Security filing strategies and discuss if you feel they could benefit from purchasing an annuity. 6) What can you suggest to Frank and Paula as it relates to their overall estate plan? 7) Frank and Paula are leaning towards funding at least one or two years of college for their granddaughter, Sophia. How would you advise them to do so and open up the conversation with their son, George and daughter-in-law, Tina? 8) Is their current investment allocation appropriate? How would you suggest they help mitigate sequence of return risk as they quickly approach retirement? 9) What other financial planning strategies or considerations (if any) could make sense for Frank and Paula? hest FPA of Michigan: Professional Roundtable Discussion (June 2022) Frank and Paula Adams (both age 62) have recently decided that they both want to retire no later than age 65. For a large part of their careers, Frank and Paula weren't sure if they'd ever be able to retire. However, over the past 10 years, they've dramatically increased their savings level and have also achieved strong returns in their investment portfolio. Because of this, they believe they will be able to retire in the next few years. They have primarily been "do it yourselfers" but have realized that they now need professional guidance from a CFP professional moving forward. Frank is an engineer at GM for the last 6 years he currently earns $200,000/yr. Paula is a nurse at Beaumont and makes roughly $50,000 working 3 days per week. Frank and Paula have one child, George, who is 35 years old. George is married to his wife Tina and they have a one year old daughter, Sophia. On Paula's days off, she watches Sophia and also volunteers at the church both her and Frank attend. They are passionate about their faith and give close to $10,000/yr to the parish. Frank and Paula aren't necessarily sure what they actually spend each month. That said, because they each maximize their respective employer retirement plans (pre- tax contributions) and save an additional $15k/yr into their joint investment account annually, they believe they can live comfortably on approximately $10,000/month (net/after-tax) but need an advisor's professional opinion on whether or not this is safe. In a perfect world, they would like to go on one, big trip each year and spend an additional $15k/yr on travel for the first 10-15 years of retirement. Paula is in great health, both of her parents lived until 97. Frank has had some health issues but is quite active - he and Paula both work out 4-5 days/week, Frank does not have as much longevity in his family - both of his parents passed away in their early 80s. They currently do not own any life, disability or long-term care insurance but would also like advice on if this makes sense or not for their financial game plan. Because neither of them will receive a pension in retirement, they're also wondering in an annuity could make sense for them. Over the years, they've heard how terrible annuities are from popular financial "experts" in the news but would like some other opinions on this topic. As far as estate planning goes, "simple" documents (Wills and POA's) were drafted nearly 20 years ago when their son, George was a minor. They are not sure who is listed as Personal Representative or Agent in Fact on their documents. Summary of Balance Sheet: Checking/Savings- $35,000 Taxable Joint Brokerage Account-$300,000 (basis $150k) Frank's 401k-$300,000 (fully maximizes and receives a 4% match) Frank's Traditional IRA - $700,000 Paula's 403b-$400,000 (fully maximizes and receives a 4% match) ***Overall "household" asset allocation is roughly 85% stock, 15% bond*** . Home - $650,000, with $100,000 mortgage (8 years remaining at 4%) No other debt besides the mortgage (they lease both vehicles) Summary of Fixed Income Sources: . Frank Social Security - $36,000/yr at full retirement age of 67 Paula Social Security - $25,000/yr at full retirement age of 67 Pension - None for either Below are the questions we'll discuss together as a group: 1) Have they accumulated enough to support their income goals ($10k/mo net and $15k/yr travel goal early in retirement)-is age 65 a realistic retirement date? 2) How would you re-create Frank and Paula's retirement income paycheck until they reach RMD age of 72? 3) Should they pay off their mortgage now or prior to retirement? 4) Do they need insurance of any kind at this point in life? What type of policy and coverage (if any) do you feel could make sense? 5) Fixed retirement income sources - please share high level thoughts surrounding Social Security filing strategies and discuss if you feel they could benefit from purchasing an annuity. 6) What can you suggest to Frank and Paula as it relates to their overall estate plan? 7) Frank and Paula are leaning towards funding at least one or two years of college for their granddaughter, Sophia. How would you advise them to do so and open up the conversation with their son, George and daughter-in-law, Tina? 8) Is their current investment allocation appropriate? How would you suggest they help mitigate sequence of return risk as they quickly approach retirement? 9) What other financial planning strategies or considerations (if any) could make sense for Frank and Paula? hest FPA of Michigan: Professional Roundtable Discussion (June 2022) Frank and Paula Adams (both age 62) have recently decided that they both want to retire no later than age 65. For a large part of their careers, Frank and Paula weren't sure if they'd ever be able to retire. However, over the past 10 years, they've dramatically increased their savings level and have also achieved strong returns in their investment portfolio. Because of this, they believe they will be able to retire in the next few years. They have primarily been "do it yourselfers" but have realized that they now need professional guidance from a CFP professional moving forward. Frank is an engineer at GM for the last 6 years he currently earns $200,000/yr. Paula is a nurse at Beaumont and makes roughly $50,000 working 3 days per week. Frank and Paula have one child, George, who is 35 years old. George is married to his wife Tina and they have a one year old daughter, Sophia. On Paula's days off, she watches Sophia and also volunteers at the church both her and Frank attend. They are passionate about their faith and give close to $10,000/yr to the parish. Frank and Paula aren't necessarily sure what they actually spend each month. That said, because they each maximize their respective employer retirement plans (pre- tax contributions) and save an additional $15k/yr into their joint investment account annually, they believe they can live comfortably on approximately $10,000/month (net/after-tax) but need an advisor's professional opinion on whether or not this is safe. In a perfect world, they would like to go on one, big trip each year and spend an additional $15k/yr on travel for the first 10-15 years of retirement. Paula is in great health, both of her parents lived until 97. Frank has had some health issues but is quite active - he and Paula both work out 4-5 days/week, Frank does not have as much longevity in his family - both of his parents passed away in their early 80s. They currently do not own any life, disability or long-term care insurance but would also like advice on if this makes sense or not for their financial game plan. Because neither of them will receive a pension in retirement, they're also wondering in an annuity could make sense for them. Over the years, they've heard how terrible annuities are from popular financial "experts" in the news but would like some other opinions on this topic. As far as estate planning goes, "simple" documents (Wills and POA's) were drafted nearly 20 years ago when their son, George was a minor. They are not sure who is listed as Personal Representative or Agent in Fact on their documents