Disaster Avoided

One of the reasons I started this company was to help people make better decisions. I recently met with Bonnie to help her plan for her retirement. We went through her Social Security and looked at her assets. Fortunately for her, she had very little debt and a reasonable income goal for retirement. The challenge is that she did not have enough savings for retirement. Her goal was to retire at 62 and live off Social Security, a small pension, an inheritance and her 403(b) plan.

At first glance, it appeared that she should take her Social Security early since it would minimize the drawdown of her liquid assets. The difference was by taking Social Security early her liquid assets would last 5 years longer than delaying. The problem was she still would run out of money at age 74. This is not a good thing for retirement. So now she had two choices. She could either live on less per month and even at the minimum benefit she would still run out in her 80’s or she could work longer, start living on retirement income level and save the difference. After the analysis, the amazing result was if she would follow the working longer strategy she would actually be able to take advantage of the optimal benefit from Social Security and the projection of her liquid assets would last beyond age 100. All she had to do was work another 3 years.

Her comment to me was I really would like to retire at age 62 but I would hate running out of money at age 74. Thanks for showing me how to make a great decision.

Retirement Resource Management is about using all available resources to their maximum potential so that you have the best options in retirement. We would love to help you and share your story.