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The nervous nellies

Clara and Eduardo

Clara and Eduardo are nearing retirement and are financially stable, though nervous about market volatility.
 
 
 

Situation

Clara is married to Eduardo. This is the second marriage for both Clara and Eduardo. Clara is a middle school teacher. The two met at a picnic for their church five years ago.
 

Family

Clara has three children from her previous relationship, and Eduardo has a child from his first marriage. All the children are out of the house, starting lives of their own.
 
 

Goal

Clara has a substantial Defined Benefit plan, as she has been teaching in her school district for over 20 years. They want flexibility in their investments as they have guaranteed income through Clara’s plan.
 

Lifestyle

Clara and Eduardo have aspirations of taking a yearly cruise and spending several months a year traveling in their RV.

Objectives

Clara and Eduardo prioritize their retirement objectives as follows:

1
Want help deciding when they'll be able to retire
2
Want flexibility in retirement to ensure future travel and the ability to live "care-free"
3
Both expect to live into very old age as both have elderly parents
Concerns

Retirement risks that are of greatest concern to Clara and Eduardo:

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Top concern

Longevity

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Concern

Market

Clara and Eduardo's income plan

Clara and Eduardo have specific financial needs in order to be able to achieve their overall retirement goals. The following is an estimated amount of annual income* Clara and Eduardo believe they will need to achieve their retirement goals.

Basic needs

 
Housing, food, healthcare, emergency fund.
 
See how its covered
 
 

Lifestyle

 
RV maintenance, travel, lifestyle support
 
See how its covered
 
$50k. $44k then $35k. Total: $94k/yr
 

Legacy

 
Legacy is not as important for Eduardo and Clara. They do like the idea of having a "buffer" in case they want to take a more expensive trip one year.
*Income needs in terms of after-tax income.

Clara and Eduardo's investment strategy

100% Moderate Conservative Portfolio
 

Investment portfolio

Eduardo and Clara will use their assets from their brokerage account, IRAs and Eduardo’s 403(b) and manage them in a moderate investment portfolio.
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Resulting income

Hypothetical income approximations to maintain $94,000 of annual income

Displayed in real dollars to show income maintains the customer's buying power throughout retirement (30-35 years). The composition of income received in retirement is purely hypothetical, for illustrative purpose only.
Resulting Income Chart
Next Steps

How TIAA can help

Annuities

We can recommend annuity options that can help you pursue your retirement lifestyle.

Investment strategies

We can help you align your asset allocation with your long-term income needs.

Retirement income planning

We can help you create a retirement income strategy that factors in your concerns, as well as your goals.

Get in Touch

Talk with a TIAA Consultant to help you review your overall retirement strategy and to help you consider the next steps.
 

888-583-2535

 
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