Boeing Retirement

What steps do we need to take to be prepared for retirement?

Situation Overview

Jeff wanted to retire on his 60th birthday, which would also be his 35th year working at his company. While this was only a year away, he had accumulated extensive savings in the VIP-401(k) plan and company benefit plans as a senior manager at Boeing. Jeff's wife, Helen, was excited about the prospects of more leisure time and travel.

Assessment

Jeff and Helen attended a BMA sponsored workshop, “The Seven Steps to Successful Retirement™,” conducted by Capital Planning. The Capital Planning team had extensive knowledge of the Boeing VIP and employee benefit plans, and they understood the associated tax implications. The initial steps with Capital Planning included a Wealth Plan Assessment of the eight key components of Jeff and Helen's financial life.

  • Goals & Objectives
  • Cash Flow Planning
  • Compensation & Benefits
  • Investment Management
  • Tax Planning
  • Risk Management
  • Estate Planning
  • Wealth Administration

The gaps in their wealth plan were identified, priorities were established, and an implementation schedule was developed. Jeff and Helen's core questions were:

  • What steps do we need to take to be prepared for retirement?
  • Are our current assets sufficient to meet our long-term income objectives?
  • What decisions need to be made regarding our company benefit plans in preparation for retirement?
  • How should we invest our VIP funds based on our retirement goals?
  • What other planning considerations have we missed?

Outcome

Their financial advisor led Jeff and Helen through the wealth planning process specifically designed for Boeing Managers. In addition, Capital Planning took the time to understand Jeff and Helen's unique circumstances, including goals, family dynamics, and concerns.

Vision & Goals

The advisors at Capital Planning assisted Jeff and Helen in clarifying their vision and goals for retirement, which brought more insight into prioritizing their time and resources.

Retirement Income Study

Taking into account their inflation assumptions, income sources, expense estimates, and investment capital, a long-term plan was created.

Investment Management

Capital Planning designed a custom portfolio based on Jeff and Helen's return objectives, income needs, risk tolerance, and income tax considerations. When Jeff retired, his VIP-401(k) was rolled over to an IRA account. Traditional and alternative investment strategies were selected to create a well-diversified portfolio. Ample reserves were maintained at their credit union to meet their short-term cash requirements.

Integrated Wealth Plan

Jeff and Helen's retirement objectives were integrated into their wealth plan. They better organized their financial records, and they updated their insurance, tax, and estate plans to prepare for their new stage of life.

Real Life Solutions are for educational purposes and are not actual clients. These case studies are based on similar circumstances experienced by our clients. To learn more about our process, see Investment Management and Wealth Planning Services.

Deliverables

Proactive Wealth Management

Jeff and Helen implemented a retirement plan to address the following key areas.

Investment Management - Capital Planning will maintain Jeff and Helen's custom portfolio based on their return objectives, income needs, risk tolerance, and income tax considerations. The traditional and alternative investment managers selected for the portfolio will be monitored, and web-based portfolio reports are available when needed.

Investment Reporting - Jeff and Helen have access to our web-based investment reporting solution, which provides reports on a number of topics.

  • Performance
  • Asset Allocation
  • Portfolio Analytics
  • Transaction History
  • Cost Basis, Interest, Dividends, and Capital Gain Status
  • Projected Portfolio Income

Estate Plan - Jeff and Helen's estate documents had not been updated for years. A thoughtful generational plan was created that would address their estate transfer goals and the needs of their children and grandchildren. An estate planning attorney was selected to update their documents.

Risk Management - Capital Planning discussed planning considerations regarding long-term care and life insurance. Property and casualty insurance was reviewed and found in good order, with the exception of their umbrella liability coverage, which was increased.

Income Tax - Jeff and Helen's most recent tax return was reviewed for overall plan coordination. Their financial advisor contacted their accounting professional to discuss their plan and collaboration efforts.

Experienced Advisory Team - Jeff and Helen's Capital Planning team is led by a seasoned financial advisor and supported by a dedicated client service associate. Other team members are available as needed in specializations such as financial advising, portfolio administration, and investment research. Regular reviews will be conducted to make adjustments and update the wealth plan.

Events

See our Events Section for more details.

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