Skip to main content

Helping clients determine if they can retire


This week we completed an analysis for a husband and wife who were referred to us by one of our best clients.  After checking with our references, they hired us to help them manage their retirement portfolio, but more importantly to help them determine if the husband could afford to retire.  The wife was retired and wanted her husband to retire from the University of Michigan where he had worked for almost thirty years.  They wanted to spend more time each year traveling and living outside the U.S.  The bulk of their retirement assets were in the University of Michigan Fidelity and TIAA-CREF retirement plans.  They were very diligent about saving for retirement and budgeting, however, they did not have confidence that they could achieve their income and travel goals if he retired, or at least not for very long.  This is a very common client concern we see over and over again.  Luckily, our analysis opened their eyes to several factors they did not consider in theirs, such as the effect of inflation and perhaps easing into retirement over the next several years.  We were able to help them tweak their budget and make them more comfortable with their retirement income number and the probability of achieving their goals.  It is critical that future inflation is taken into consideration when we are doing retirement income projections.  In addition, many clients are tied to this idea of not spending any principal.  In reality, most clients will spend some principal in certain years while in retirement. The current rule of thumb in financial planning is that a client with a well-balanced stock and bond portfolio can safely spend approximately 4.50% of the portfolio each year without depleting principal over time.  Again, this is just a rule of thumb; however, we have personally witnessed this work for clients.  When you are using an annual percentage spending goal as opposed to a fixed amount, you are leaving more principal to work and compound during the good years and taking less in bad years. 

White House Financial & Settlement Consulting helps families live an easier and less stressful life by helping them accumulate and preserve their wealth.  We do this by acting as our clients’ trusted advisor providing client focused, custom, comprehensive, financial advice and exceptional service!  Please visit our web site at www.whitehousellc.com for more information!

Popular posts from this blog

Using a structured settlement annuity pre-suit

 We recently were engaged by the Guardian Ad Litem (GAL) in the case of an 11 year old boy who was struck by a care while riding his bike.  The father of the boy settled the case directly with the liability auto insurance carrier pre-suit and the GAL contacted us to ensure that the boy's settlement funds were handled appropriately. The case settled for a total of $65,000 and $59,000 was being allocated to the structured settlement annuity for the boy as follows: $5,000 paid immediately upon settlement $10,000 at age 18 $20,000 at age 21 $25,000 at age 25 $35,718 at age 30 this is total benefits of $95,718! The annuity was placed with a large life insurance company rated A+ by the A.M. Best rating agency and provided the family and GAL with the peace of mind that the young man would not receive the entire amount at age 18. In addition, due to the use of the structured settlement annuity, all of the interest gained during the payout period ($31,718 to be exact) is INCOME TAX FREE!  T

Michigan Association of Justice Workers Compensation Seminar

We had an awesome time at the Michigan Association of Justice Worker's Compensation seminar where Cyril spoke on the best strategies for using structured settlements in Worker's Compensation cases. Click the link below to watch the short video of his presentation!   Click Here to Watch Video! www.whitehousellc.com

COVID will not stop us providing unique settlement solutions using structured settlement annuities!

I hope that you are doing well! We just FINALLY completed the settlement of a case for a minor (age 17) that we were initially engaged by our plaintiff attorney client in February 2021, to provide structured settlement annuity quotes! Although the claimant was very close to the age of majority the key to the case was not giving him all of the settlement proceeds, which was over $120,000, at age 18. Having been in this business for over 20 years I cannot tell you the number of sad cases we have witnessed where the young claimant receives their settlement proceeds at age 18 only to blow through all the funds before anyone can blink and make bad decisions with the proceeds! This case involved two liability insurance carriers Liberty Mutual and Member Select. We coordinated multiple rounds of document revisions and had to have a separate set of different documents for each insurance carrier. In addition, one of the carriers would not fund the annuity until we had a fully executed court ord