You have a new client. Spouse A is 65 and spouse B is 37. They have 3 children. Each spouse brings in $150,000. Spouse A is looking to retire soon, while Spouse B wants to retire around age 60. They have $15,000 in passive income annually as long as Spouse A is alive. Living expenses are $110,000 per year before debt and taxes. They have two car loans worth $30,000, a mortgage on their primary residence of $240,000, and a mortgage on their rental property of $115,000. Spouse A pays alimony to their previous spouse of $30,000, and they would like to fund their children's education. They have $30,000 in cash on hand and $700,000 in retirement accounts.

One of their biggest concerns is the impact of inflation. Their $110,000 of living expenses will be $260,000 by the time Spouse B is age 100. How would you coach them through their investment allocation, knowing that Spouse A is retiring very soon and will need to withdraw funds due to Required Minimum Distributions (RMD's) at age 72, yet there needs to be available funds for Spouse B for another 60+ years? What are your recommendations? Are there any questions you would pose to understand the clients' concerns? Are there any alternative investments you would suggest for their portfolio? If so, what tax bucket would it fall into (ie. taxable, pre-tax, Roth)? How would you evaluate their goals on an ongoing basis and adjust the plan accordingly?