Melissa Case-Study

The Challenges

Do I have enough money?

Melissa is worried that she might not have saved enough to be able to retire. She’s unsure if her pension combined with her social security benefit will be enough to live on, after considering taxes and inflation.

What Pension Option Should I take?

Melissa is confused by the many pension options available to her. She is trying to decide between option 3 & 5. She is also questioning if the partial lump sum option (PLSO) is the right option for her to elect.

When should I file for Social Security?

Melissa is unsure if she should file at retirement for social security, or if she should delay her benefit to 70. She is also wondering how to coordinate her benefits with those of her husbands.

What about Healthcare?

Melissa knows that Medicare will be there for her, however she doesn't know which plan would be best for her considering her health concerns.

What do I do with my 401(k) and 403(b)?

Melissa has saved over $100,000 in her 401(k) & 403(b). She needs guidance on the best way to invest those funds to allow for long term growth and protection as well as how to manage distributions from these accounts.

The Capita Solution

o Cash Flow Planning:

Capita begins by building a cash flow for Melissa. This allows her to better understand and visualize what her retirement income from Social Security, pension & investments will be, taking into account taxes and inflation.

o Pension:

Capita will build a pension analysis to help Melissa decide which of the 18 filing options are best for her and her family. This analysis will also help Melissa decide whether the partial lump sum option is the best fit for her long term financial goals. We will provide both the pros and cons as this decision is completely based on the individuals financial needs and circumstances. Once she decides, Capita will then help hernthroughout the entire submission process.

o Social Security:

Capita will guide Melissa through the many different social security filing strategies. We will take into consideration her age, life expectancy, need for income and marital situation. Coordinating her social security strategy with that of her husband's will be critical to their success in retirement.

o Healthcare:

Through Capita's network, we will assist Melissa with her transition to private health insurance or Medicare ninety days before she retires.

o 401(k) & 403(b)

Capita will create an individualized investment portfolio to help Melissa understand all of her investment options. This portfolio will provide a level of protection against possible market losses as well as long term growth assets to hedge against inflation risks. A diversified portfolio will minimize the risk of running out of money in retirement.

o Taxes:

Capita will ensure that Melissa is maximizing her current tax bracket. As she continues to work, we will encourage optimization of all company sponsored plans such as 401(k), 403(b), and HSA.

o One-Stop Shop:

Here at Capita, our team commits to support Melissa before, during and after retirement.

The Conclusion

Capita will ensure that Melissa's transition into retirement is simple and attainable. Our advisors will help Melissa every step of the way by creating a personalized retirement roadmap.

Case studies are for illustrative purposes only and there is no assurance that the adviser will make any recommendations with the same or similar characteristics as any recommendations presented. The recommendations are presented for discussion purposes only and are not a reliable indicator of the performance or investment profile of any composite or client account. Further, the reader should not assume that any investment recommendations or that investment decisions we make in the future will be profitable.

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Melissa