Case Study
Mr. & Mrs. Young want to retire in 1 year ...
Note: This is a hypothetical scenario. Mr. & Mrs. Young are not actual clients of Mission Financial Group. Their results should not be construed as a guaranteed outcome.

Scenario

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Mr. & Mrs. Young | 62yrs old

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Retirement/Savings | $1.5M

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Mortgage Balance | $200k

Questions

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When to claim Social Security?

Can our investments be improved?

Does an annuity make sense for us?

Should we buy LTC insurance?

What if one of us dies early?

Goals

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Annual Travel | $15k/yr.

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Renovate Kitchen | $50k budget

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Maintain Lifestyle | $10k/mo.

The Mission Master Plan (TM)

Our 7-step process is designed to help families cover all their bases in retirement.

A complimentary meeting with you will help us both determine if we're a good fit.

If we mutually decide to move forward, we'll walk you through our process and help you establish security and freedom in retirement.

GET ORGANIZED

1

STEP

Wisdom in knowing your numbers

QUESTION

Can you help me understand my various accounts and numbers?

PROCESS

  • Organize financial numbers

  • Backup important documents (vault)

  • Discuss initial questions

RESULT

For the first time, the Young family had a clear picture of their money. This brought them a sense of confidence. Now they could finally make informed decisions and concrete plans.

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INCOME PLAN

2

STEP

Core Income = Expenses = Security

QUESTION

How much can we spend in retirement and will it last?

PROCESS

  • Establish *guaranteed income for basic expenses

  • Ensure core income increase

  • Ensure a surviving spouse has sufficient income

RESULT

Because "core" income was hard to define and organize for the Young family, it was a significant milestone for them to gain clarity that consistent income would cover expenses. The Young family felt confident they now understood their options and explored various scenarios.

 

*Guaranteed income is based on the claims paying ability of the issuer.

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DEBT PLAN

3

STEP

Good Debt vs. Bad Debt

QUESTION

How and when should I pay off debt?

PROCESS

  • Refinance high-interest rates & shorten terms

  • Strategically utilize lines of credit

  • Implement acceleration strategies (line of credit, chunking, prepayments)

RESULT

After establishing their debt plan, the Youngs feel they have evaluated and decided on an optimal strategy to use leverage and reduce debt in rain or shine conditions.

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INVESTMENT PLAN

4

STEP

Optimize Investments

QUESTION

Can our investments be improved?

PROCESS

  • Establish a target investment speed

  • Implement a disciplined investment process

  • Discuss changes to optimize and enhance strategy

RESULT

Portfolio investments were adjusted to incorporate a disciplined and thoughtful approach that was appropriate to the Young family's new retirement season.

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TAX STRATEGY

5

STEP

Build tax-advantaged wealth

QUESTION

Can we save on future taxes?

PROCESS

  • Analyze current tax efficiency

  • Develop a schedule to build tax-free wealth

  • Explore most common tax strategies

  • Optimize tax efficiency in investments/income

RESULT

The Youngs knew they could do more to lower their lifetime tax bill, but had no idea where to start. After learning about the value of tax-free accounts, they were eager to reposition their assets into strategies that could save them from tax surprises in the future.

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CONTINGENCY PLAN

6

STEP

Expect the unexpected

QUESTION

Do we need insurance or long term care protection?

PROCESS

  • Discuss the cost and risks of a health event

  • Establish an LTC plan (traditional, hybrid, out-of-pocket)

  • Establish resources for an economic crisis

  • Implement a strategy that protects the family 

RESULT

The Youngs were always afraid that a major health event could wipe out their entire life savings. They felt confident that they had a plan for the worst and would receive a high level of care.

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ESTATE PLAN

7

STEP

Generosity = Legacy

QUESTION

Will our family be ok when we're gone?

PROCESS

  • Establish/review current trust documents (diagram how assets will be transferred and taxed)

  • Create a tax-efficient gift plan for charities (gifting schedule for donations, education accounts, gifts)

  • Plan a generous legacy for family

RESULT

After securing their own financial plans and income, the Young family felt confident about making plans to bless their own family as well as the charities they cared for. The estate and gift planning process was especially fulfilling, knowing they were financially secure and could afford to give generously.

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Can our step-by-step process help you

enjoy a more secure retirement?

Learn more about first steps ...