Meet Dana

Unique Challange

Dana is 66, has more than enough to comfortably retire, and matter of fact she came to that conclusion a while ago. However, she is still working. She likes her job, but is worried about navigating high tax burdens, and facing the question of what she wants to do with the money. She has no heirs, and sometimes feels the money can be a burden.  

She’s got a sizable IRA, a Revocable trust, and a little bit in Roth dollars that came from after-tax contributions she’s been making since she was working. She heard she better start filling up the Roth bucket. She isn’t sure what to do next, but some of her colleagues who have been retired for a few years now have warned of Required Minimum Distributions, IRMAA penalties, and paying capital gains taxes. Like many in her position, she is facing a long list of tactics – but no strategy. 

Moves Made

Finding the right starting place was key for Dana. A fee-only fiduciary advisor who would listen to her concerns, give her an outside perspective of where she stood, and worked with people just like her sounded like a good fit.  

An initial discussion and look at her Retirement Review gave her the outside perspective about where she was headed if she took no action. She was going to give up more than what was necessary for her net-worth. We also took time to discuss how to get the most out of the money – and not just dollars. 

• Discussed an introduction to the local Community Foundation to explain options for vehicles such as Donor Advised Funds. Explored  areas of need in her community and causes she cares about 
• Introduced direct-indexing strategies to compound her net-worth more effectively after-tax and divest of concentrated positions she has no attachment to 
• Arranged a joint meeting with a local estate attorney to re-review her revocable trust, beneficiary designations, and to make sure she was taken care of 

The Results

Today Dana is happily retired, confident in what she is doing with her money. Compared to what she heard from her peers, this feels more like a strategy. 

• She has a donor-advised fund that was funded with highly appreciated stock that allows her to direct gifts to the local humane society where she also spends time volunteering. 
• Her assets are re-positioned to reduce the risk of her concentrated positions in her trust via an active direct-indexing strategy that reduced risk and positions her for even more growth 
• Her estate documents are up to date – new beneficiaries added to her trust with terms to fund goals well after she is gone, and she’s well protected should she need some help later in life 

The best part, she knows she’s not done. With the proper strategies in place, she’ll be able to fund more of the causes she cares about. Give more time, and gifts when she wants to the next generation in her family. The process is in place – executing it has been the retirement dream she was searching for.