A Retirement Case Study…

Tonight on Financial Fitness we peak into the lives of “James and Kathy” who, at the age of 62 are squarely looking at retirement. They have dreams, but they do not have a plan…

But thankfully, they have the Financial Fitness “Show me the Money” team! Join host Vicki Brackens and her panel of experts as they look at a fictional, but relatable, example of a CNY family on the verge of retirement.

So that you can play at home, here are the case facts. Tell us what you think Kathy and James should do!

 

A FINANICAL FITNESS CASE STUDY

“James” – Occupation – Bank Administrator

“Kathy” – Occupation – Part‐time Credit Union Administrator

 

 

 

James’ Age – 62 – Income $96,000 per year

Kathy’s Age – 62 – Income $36,000 per year

James’ Qualified Retirement Savings ‐ $220,000

Kathy’s Qualified Retirement Savings ‐ $75,000

Joint Non‐Qualified Retirement Savings ‐ $90,000 (inheritance)

James’ Monthly Defined Benefit Pension – $4,650 at retirement

James’ Social Security ‐ $1,800/Monthly at age 62 and $2,300 at age 70

Kathy’s Defined Benefit Pension ‐ $1,000 monthly + Social Security of $1,200 at age 62 and $1700 at age 65

James’ permanent life insurance – Existing $75,000

Kathy’s permanent life insurance – Existing $25,000

Retirement Age ‐ 66

James is an administrator for a large bank in Washington, DC. He is planning to retire from the bank in four years after a long career of service.

Kathy is an administrator for a Credit Union. She wants to retire right now, but will wait as long as needed to help them have a better life in retirement.

They have two married children and four grandchildren.

Their goal is to remain in their current house, which is paid off, but the annual $650 property taexs are getting a little harder to cope with each year.

They are planning on maintain an active life style in retirement. James loves to golf and Kathy loves to travel.

Their 2 grandchildren ages 9 and 13 are very important parts of their lives and they spend as much time as possible, helping  them celebrate birthdays, summer vacations, and holidays and possibly college expenses .

They are interested in a retirement income plan that gives them guidance on how their savings should be invested to make sure that their paychecks last as long as they do.

Both James and Kathy are conservative investors and like to plan for contingencies.

They are resistant to large market cycle swings in their retirement savings. They own life insurance but are not sure if they need to keep it in force.

Kathy’s parents are still alive and live within an hour from them. Right now they are in Ok health, but signs of aging are starting to show a little.

James’ bank pension has a COLA provision.

Kathy’s pension benefit has no COLA adjustment.