Case-Study-Day-1

Client Background

FACTS

  • The Days are typical pre-retirees, looking forward to financial independence in a few years
  • Ken is 59, Christine is 57
  • They have been together since high school, coming up on 40 years of marriage

GOALS

  • Retire comfortably at ages 62/60 without fear of running out of money or being a burden on their children
  • Take a month-long cruise for 40th wedding anniversary in 2 years

CHALLENGES

  • The Days have money saved in various places, but they don’t know if it’s enough to live on once their working income stops.
  • They are not sure how Social Security factors into the picture, or when they should look to be taking it
  • Neither of them has a pension or any other sort of fixed income coming their way in retirement

How Did Oxford Help?

Oxford’s Partnering Process provided the Days CLARITY by using years of advanced academic research to plan out a sustainable retirement income to meet their needs at age 62. Additionally, Oxford was able to provide a detailed 5 year cash flow plan, which showed the Days not only where their standard of living was going to come from in retirement, but also showed other income and expense line items such as Social Security coming in and the cost of the anniversary trip in 2 years.

Lastly, and perhaps most importantly, Oxford provided CONFIDENCE by implementing Power of 5 Investing® for the Day’s portfolio. With retirement 3 years away, it was critical to start building up the Stability Bucket now, so that the portfolio could be built in anticipation of market volatility in retirement, not in reaction to it. This peace of mind of knowing the first few years of retirement withdrawals are already set aside in a low-volatility Stability Bucket gave the Days confidence that their retirement plan would remain on track no matter what the markets throw their way.

Results

  • Established a clear path for retirement at ages 62/60
  • Provided detailed cash analysis of how standard of living would be covered once working income goes away
  • Planning for the 40th wedding anniversary trip became a reality
  • Implemented Oxford’s proprietary Power of 5 Investing® system to establish clear principles for how portfolio will be managed throughout retirement

This is a hypothetical example used for illustrative purposes only. The strategies discussed in this example may not be suitable for all readers. Please consult a CFP® Professional, CPA, or attorney prior to taking any action. No strategy assures success or protects against loss. Investing involves risk including loss of principal.