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A Case Study

In this case study, we get to know John and Jane Sample, ages 63 and 61, who are in their prime earning years and have their eyes set on retirement. Join us as we follow the Samples through their introductory experience with Creative Planning.

John and Jane Sample are ready to retire. They’ve each had wonderfully fulfilling careers, John as a business owner at ABC, Inc., and Jane as an executive at Acme, Inc., but they’ve realized that it’s time to start the next chapter of their lives.

They have a healthy mix of investments across savings vehicles such as profit-sharing plans, 401(k) plans, business interests, Roth IRAs, and standard brokerage accounts. They’ve been great savers, but they’re unsure if their savings will be enough to maintain their lifestyle throughout 30 years of retirement.

Switching from Mega-Saver to Savvy Spender is Tough

John and Jane face a common problem for wealthy retirees. They’re fantastic at saving money, but they admittedly don’t know a lot about how to draw down on their assets. In fact, the whole idea of living off their savings—healthy as they may be—makes them nervous.

Without a steady paycheck, they wonder, how are they supposed to ensure they’re living within their means? Which accounts should they withdraw funds from, and how should they be invested now that they’ll be living off these funds for the next few decades without replenishment? How can they minimize the tax hit they’ll experience once they begin to draw down on their investment accounts?

John and Jane