Claire and Phil’s story is one that many approaching retirement can relate to – being ready for a change, whether it be semi- or full retirement, but not knowing the financial impact it will have. It’s typical that as retirement edges closer, the questions about “what’s next” grow louder, and the decisions more complex. 

For Claire, the burnout was setting in. She had a plan for semi-retiring which included leaving her full-time role and launching her consulting business, where she controlled her flexibility and workload. Meanwhile, Phil was comfortable and fulfilled in his CEO position. 

Together, they wanted to ensure their financial plans supported not only their current lifestyle but their future hopes: downsizing from their large metro home, building a new lake house, and traveling, which is a passion for both. 

The Complexity of Transition

The transition from full-time work to semi-retirement, or even full retirement, is rarely simple. It’s not just about “saving more” or “investing wisely.” There are countless moving pieces to consider:

• Maximizing contributions to retirement accounts each year, especially when income sources change. 
• Managing the tax impact of self-employment income. 
• Deciding when and how to withdraw funds in a way that minimizes tax bills and maximizes longevity of savings. 
• Adjusting lifestyle habits to not erode retirement savings. 
• Navigating estate planning, especially when health concerns arise or family responsibilities shift. 

Facing these decisions – and making the right ones to help you meet your goals – alone can be overwhelming. 

Why Working with an Advisor Makes a Difference

That’s where an experienced financial advisor steps in – as a guide, strategist, and sounding board. Claire and Phil’s advisor didn’t just create a one-time plan. Instead, they became a trusted partner, helping the couple think through the details they might otherwise overlook. 

When Claire contemplated making a shift to part-time consulting, their plan was stress tested – compared against scenarios to see how it could withstand different market environments – to ensure they could maintain financial stability despite a reduced paycheck. In collaboration with the couple’s CPA, the team identified tax strategies Claire could leverage as a self-employed consultant, such as small business deductions, helping to minimize the impact on their overall tax bill.  

In conversations, Claire made the decision to accept a new full-time role with a higher salary and wait to start her consulting firm. As a result, their plan was recalibrated – balancing their immediate needs with long-term goals, like downsizing their main home and building their lake house – helping to prioritize their short-term goals.

The team collaborated again during the home sale and home building project to smartly navigate the tax consequences and manage expenses. Amidst conversations, guidance was provided on how to fund the home build, set up a payment plan for tax bills, and proactively implement tax management.  

The Emotional Side of Planning

Money isn’t just numbers on a spreadsheet; it represents your goals, financial security, and peace of mind that you’ll be able to enjoy retirement exactly as you’ve envisioned. After Phil experienced a life-threatening health scare, the couple realized how important it was to have their estate plans in place, with clear instructions and protections for their family. 

Their advisor helped guide them through updating these plans — including Claire’s new role as trustee of her mother’s estate — alleviating stress during an emotionally difficult time. 

And the team helped Claire and Phil recognize how lifestyle habits and unadjusted spending can quietly chip away at savings. With more time in full employment - and then later semi-retirement - the more time there is for traveling and making time for what matters, so with thoughtful budgeting and strategic planning, their advisor helped them strike a balance between enjoying life today and preserving financial security for tomorrow. 

Getting Ready for Life’s Next Chapter

For pre-retirees like Claire and Phil, the path to retirement is rarely linear. It requires constant adjustments, smart decisions, and a steady focus on both current happiness and future financial security. 

Working with an advisor turns that complex journey into a manageable process – one where you feel supported, informed, and empowered to make the best decisions for your unique life. It’s not just about maximizing income or minimizing taxes; it’s about creating and living a retirement that feels both secure and fulfilling. 

Please consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.