Michael, 40
Wondering if he's on track.
Michael was referred to us by a client who
has been with us for many years. Michael is 40, married, with two
children, 12 and 8. He would like to retire at age 60 and spend his
retirement traveling with his wife. He also wants to make sure that
he will be able to contribute at least 50% of his children's
college tuition.
Here's How We Help Michael
Since Wiley Group is primarily a retirement planning firm, most
of our clients come to us when they are nearing retirement. From
time to time, however, we are introduced to younger people through
referrals from existing clients or through our website. Even though
retirement in 20 years (or more) may seem like an eternity away, it
is never too early to begin growing your nest
egg.
Evaluate Current Portfolio
First, we evaluated Michael's current spending and extrapolated
future expenses. We then ran a Financeware™ analysis to see
what Michael's chance of success was, given his current asset
levels and savings habits. We then ran a complete portfolio
analysis on his current investments to make sure that he was
properly balancing risk and return.
As it turns out, Michael was not saving enough in his 401(k) and
tax-deferred investment vehicles to retire at 60 and keep his
standard of living at what he had expected. His portfolio was
also too conservative for his goals and risk tolerance. He
had set up college savings plans, but they were somewhat
underfunded.
Implement A Plan
The Wiley Group gave Michael several recommendations to increase
his savings, both for retirement and his children's
schooling. We also made some small adjustments to his current
investment portfolio allocation in order to improve his chances of
success in both his educational funding goals as well as his
retirement plan.
Monitor The Plan
Michael has been working with us for over a year now monitoring
and fine-tuning his plan and, with some small adjustments, we
believe he is on track to meet both his educational funding goals
in 6 years and his retirement goals at age 60.
This case study is hypothetical in nature, and not a portrayal of a current Wiley Group client. It is designed to provide some insight into what you may expect when working with the Wiley Group regardless of your age and situation.
