Legacy, Lifestyle, and Liquidity: Guiding the Kings Through Their Retirement Years
Current State of Finances
Dr. James King, a retired cardiologist now in his late 70s, spent over three decades in private practice. He and his wife, Elaine, enjoyed a high-earning lifestyle during his working years and were diligent savers. Today, they have approximately $6.5 million in investable assets, including taxable accounts, IRAs, a charitable remainder trust, and income from a diversified rental property portfolio.
The Kings have been fully retired for over a decade. Their children are grown and financially independent. While they’ve done much of the heavy lifting already—building wealth, creating estate documents, establishing charitable giving structures—they reached out for help with the next phase: simplifying financial complexity, keeping their investments aligned with lifestyle needs, and ensuring a smooth transfer of wealth to the next generation.
They love to travel, often spending months at a time abroad. They’re not interested in chasing market returns. Their focus is clarity, confidence, and peace of mind.
Financial Advisor Insights: What are we thinking about?
Investing for Simplicity
With no active income and no desire to take on excess investment risk, we prioritize adjusting the Kings’ portfolio to focus on tax-efficient income generation and liquidity. We rebalance their investment mix to include a reliable ladder of short-term municipal bonds and dividend-producing equities, while consolidating legacy accounts that no longer serve a clear purpose.
We also reduce overlap across investment managers and ensure the asset allocation supports near-term cash needs, large travel expenditures, and required minimum distributions (RMDs).
Travel and Liquidity Planning
Frequent international travel creates variable and often large expenses. We consider the Kings segmenting part of their portfolio into a dedicated travel reserve: an accessible, low-volatility fund earmarked for annual adventures and spontaneous getaways. This allows them to spend freely on experiences without needing to tap long-term investment holdings during market downturns.
Preserving Autonomy and Reducing Complexity
As James and Elaine grow older, they become more mindful of decision fatigue and the potential need for trusted support. We want to simplify their financial structure now so that, if the time comes, a family member can step in with minimal disruption. This includes consolidating accounts and building a clear, centralized inventory of assets and income streams.
What’s Next?
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