Robert & Catherine Thompson

Engineers retiring within five years with a busy retirement lifestyle

Who They Are

Client Profile

Our clients come in all shapes and sizes with varying income levels, unique challenges, and different goals. We offer customized planning for each client based on individual circumstances.

Financial Situation

  • Combined annual income: $320,000
  • Retirement savings: $1.8 million across 401(k)s, IRAs, and brokerage accounts
  • Home value: $450,000 with $60,000 remaining on mortgage
  • Additional real estate: Small vacation cabin on Lake Ontario worth $275,000 (paid off)
  • Emergency fund: $75,000
  • Outstanding debt: $60,000 home mortgage, $15,000 in car loans
  • Robert has a pension from a previous employer that will pay $2,500/month at age 65
  • Catherine has stock options from a previous employer worth approximately $200,000 (vested)

Retirement Goals

  • Robert plans to retire at 62, while Catherine is considering working part-time until 65
  • They want to maintain their current lifestyle in retirement
  • They hope to travel extensively, particularly to Europe and Asia
  • They want to spend more time at their vacation cabin
  • Robert wants to pursue his hobby of woodworking more seriously
  • Catherine is interested in consulting part-time in retirement
  • They want to help their children financially if needed, particularly with home purchases
  • They hope to be involved grandparents (though they don’t have grandchildren yet)

Financial Concerns

  • Worried about outliving their money, especially with their family history of longevity
  • Concerned about rising healthcare costs before Medicare eligibility
  • Uncertain about the optimal time to claim Social Security benefits
  • Want to minimize tax burden in retirement through strategic withdrawals
  • Concerned about potential long-term care needs for themselves and Robert’s parents
  • Unsure about the best way to help their children financially without compromising their own retirement
  • Worried about market volatility affecting their retirement portfolio
  • Uncertain about how to manage Robert’s pension options (lump sum vs. monthly payments)
  • Need guidance on estate planning to efficiently transfer assets to their children

Questions They Have

  • Are we on track to retire when planned while maintaining our current lifestyle?
  • How should we structure our investment portfolio as we approach retirement?
  • When should each of us claim Social Security to maximize benefits?
  • What’s the most tax-efficient way to draw down our retirement accounts?
  • How much can we safely spend on travel and leisure in retirement?
  • Should we pay off our mortgage before retiring?
  • How should we plan for potential long-term care needs?
  • What’s the best way to help our children financially without jeopardizing our retirement?
  • How should we update our estate plan to protect our assets and minimize taxes?
  • Should Robert take the lump sum pension option or the monthly payments?

 

Getting started is simple

No gimmicks, just clear and honest financial advice you can trust. We’re fee-only advisors—no hidden agendas or conflicts of interest. At Rockbridge, clarity comes first, so you’re always confident in your financial decisions.