State and federal employees often have different challenges and opportunities when planning for retirement. While many workers have different investment and benefit options that private sector workers might not, the complexity of navigating through these retirement options can often be overwhelming.
Annie Parker has worked as a federal employee her entire career. She has held several different positions and has always contributed to her retirement plan. Annie’s husband, Scott, is a manager at a large manufacturing company and is contributing to his employer-sponsored plan. He has several other retirement accounts with former employers. The couple is retiring and wants to get a consolidated picture of their retirement savings to better understand when they can retire and with what income level.
|How do I choose a pension option that will protect my spouse and family?
|We examine all of your pension options, answer any questions and work to make recommendations that provide for you, your spouse and family.
|When should I claim Social Security?
|We perform a Social Security analysis and help you determine the best claiming strategy.
|How much of a penalty will I incur if I retire early?
|We request specific early retirement estimates from the state and analyze the amount of the reduced benefit.
|How do I make sure my spouse is taken care of if I die?
|We work with your spouse to apply for spousal benefits and make sure your investments and pensions are set to provide the income needed. We also coordinate with your attorney to make sure critical estate plans and beneficiary designations are up to date.
|What are the healthcare options for my family?
|After we conduct a review, based on your age, company benefits, Medicare options, private insurance options and family situation, we evaluate the healthcare alternatives and income requirements so we can help you make an informed decision.
|How much retirement income do I need?
|Together, we create a plan based on your lifestyle and income needs. We review all investments, Social Security and pension options to create a flexible plan that provides the income you need throughout retirement.
|When can we retire and begin to draw down our benefits?
|We take a complete inventory of your investments, pension options, Social Security and healthcare options and create specific recommendations based on your age and income requirements.
With our experience and knowledge of state and federal retirement plans, our team can help you build a retirement plan tailored to your needs that helps you make the most out of your benefits.
*This case study is hypothetical and for discussion purposes only. It is not intended to represent any specific return, yield or investment. Individual experiences referenced above may not reflect the future experience of any one client. The planning process discussed may not be suitable for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal.
IMPORTANT: The projections or other information generated by Envision regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
Envision® methodology: Based on accepted statistical methods, the Envision tool uses a simulation model to test your Ideal, Acceptable and Recommended Investment Plans. The simulation model uses assumptions about inflation, financial market returns and the relationships among these variables. These assumptions were derived from analysis of historical data. Using Monte Carlo simulation, the Envision tool simulates 1,000 different potential outcomes over a lifetime of investing varying historical risk, return, and correlation amongst the assets. Some of these scenarios will assume strong financial market returns, similar to the best periods of history for investors. Others will be similar to the worst periods in investing history. Most scenarios will fall somewhere in between. Elements of the Envision presentations and simulation results are under license from Wealthcare Capital Management LLC. © 2003-2021 Wealthcare Capital Management LLC. © 2003-2021 Wealthcare Capital Management LLC. All Rights Reserved. Wealthcare Capital Management LLC is a separate entity and is not directly affiliated with Wells Fargo Advisors.