A married couple, Kim, 55 and Tori, 49 have come to you for retirement and estate planning advice. Kim has recently retired and is receiving 60% of his salary, $5568.00 gross, a month in retirement pay. Tori is self employed and earns approximately $40,000.00 gross a year. Kim wants to know if he should get a post-retirement job or if they have enough income for him to engage in his hobby full time after working for 25 years. Kim and Tori have two college age children. They recently cashed out some whole life insurance policies and that money will cover 100% of their children’s college expenses. Kim has a
$200,000 term life insurance policy that will be in place for 10 more years. Tori has a $50,000 whole life policy with $9,000 cash value. Kim and Tori own a house with a fair market value of $315,000 on which they still owe $145,000. They have cash and investments of $400,000 and IRAs worth $75,000 and $50,000. In retirement, Kim and Tori would like to be able to travel at least once a year and spend $5000-$7500 on each trip. They would also like their estate to cover their funeral expenses and leave something for their children.
For your portfolio project you will create a retirement and estate plan and a PowerPoint presentation about the plan that you would present to your client.
In your plan, address the following:
Describe their retirement income needs and their income and distribution options. Include the federal requirements and protections for their options.
What income and distribution strategies would you recommend and why?
What estate documents do you recommend they have and why?
What are the tax implications for their estate should they die in 15 years and how would you recommend they plan for them?
The retirement and estate plan should be 3-5 written pages, 7-10 powerpoint slides, and include at least 4 citations formatted according to APA guidelines.
