Frank and Pete
Frank and Pete are nearing retirement and they are financially limited. They are aggressive risk takers.
| age | life stage | salary | total assets | occupation |
|---|---|---|---|---|
| Frank is 66 and Pete is 60 | Nearing Retirement | $64,000 | $300,000 | Admissions Counselor |
Frank and his life partner, Pete have been together for 23 years and got married last year in Pete’s hometown of Seattle.
Frank wants flexibility and is aggressive, he feels he needs to be in order to retire. He wants to make up for the losses he experienced in 2008.
Frank is working for a university in Oregon, as an Admissions Counselor. It is his second career. Before his current role, he was an entrepreneur, but lost his business with the economic downturn of 2008. Pete is an artist and works on commission. He displays his work in various shops around town and sells 2-3 pieces each month.
Wants to retire but not sure if he can or should
Values flexibility but does not want to outlive assets
Wants to be sure that Pete will be financially stable if he passes away first
Frank and Pete have specific financial needs to address in order to be able to achieve their overall retirement goals. The following is an estimated amount of annual income* Frank and Pete believe they will need to achieve their retirement goals.
Housing, food, healthcare, emergency fund.
See how its coveredOpens dialog
Maintain lifestyle, gym memberships, support Pete's art.
Legacy is not important for them. Frank does like the idea of a contingency if times get rough. This buffer will be part of his investment allocation, and will be used as security in case Frank passes away first.
*Income needs in terms of after-tax income.
Frank chooses to annuitize a portion of his variable annuity balance because it will provide him with a lifetime income stream based on market returns.
Frank and Pete are risk-takers by nature. They are comfortable with market fluctuation and want to be in "the game."
Displayed in real dollars to show that income maintains the customer's buying power throughout retirement (30-35 years). The composition of income received in retirement is purely hypothetical, for illustrative purposes only.
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