By Michael Henley, CFP®, CPWA®, CRPC®, RMA®

At Brandywine Oak Private Wealth, we take great pride in helping families navigate complex financial decisions. Every client’s situation is unique, which is why our approach is highly personalized and deeply focused on what matters most to them.

This particular story highlights the work of Brittany Kalsky, a CERTIFIED FINANCIAL PLANNER® professional and one of our outstanding Private Wealth Advisors. Her skill, experience, and commitment to her clients made a significant impact on a couple approaching retirement. With a blended family, multiple income sources, and important estate planning considerations, they needed a clear and comprehensive strategy.

Brittany worked closely with the couple to evaluate key financial choices, including pension options and aligning their estate plan with their intentions. She collaborated with tax and legal professionals to help structure a strategy that addressed their financial priorities while considering tax implications.

Meet the Family

The couple, both in their 60s, became Brandywine Oak clients a few years ago as they were approaching retirement age. With a blended family and multiple financial priorities, they were looking for guidance on how to manage their retirement assets and estate planning. Each had spent their careers in different industries, and they wanted to create a plan that aligned with their lifestyle goals while considering the needs of their family.

When Brittany first met with the couple, they were a year and a half away from retirement. They needed help with several aspects of their financial outlook, including:

  • Managing their 401(k), pension, and company stock proceeds
  • Consolidating assets held in various accounts
  • Planning for cash flow in retirement
  • Structuring their estate plan to accommodate their blended family
  • Navigating Medicare and Social Security enrollment

Their goal was to maintain their lifestyle throughout retirement while balancing financial security with flexibility. They needed to evaluate whether a lump sum or annuity would be the better option for their pension. Additionally, they sought a strategy that would allow them to sustain a monthly budget of at least $15,000 while preserving additional funds for travel and other discretionary expenses.

Crafting a Balanced Financial Plan

Brittany addressed many of the couple’s initial concerns at the first meeting. She began by reviewing their investment and pension plans and other external financial accounts. She framed a unique plan that incorporated all aspects of the couple’s financial life, including income, expenses, investments, assumptions, and final goals.

The first step Brittany took was projecting their retirement cash flow. This involved generating multiple “what-if” scenarios that showed the clients a few different timelines for their planned retirement, and the impact on their cash flow of each.

In the following meetings, Brittany reviewed their Medicare and Social Security plans. She helped them decide at what age each of them should take Social Security and incorporated expected Medicare premiums in the expenses of their financial plan. Additionally, Brittany discussed the clients’ goals regarding the legacy they wished to leave for their children and how they envisioned their wealth being passed down in the future. She then coordinated with an estate planning attorney to have new Wills and Trusts drawn up, as it had been a few years since the couple had reviewed these documents.

Meaningful Outcomes

Through careful planning and strategic recommendations, Brittany helped the couple make well-informed decisions about their retirement timelines, cash flow, and legacy planning. 

Clarifying Retirement Timelines

Brittany provided a detailed analysis of different retirement scenarios, helping the couple understand how various factors (such as planned retirement dates, spending, and Social Security timing) could potentially impact their cash flow. With these insights, they gained confidence in their planned retirement date and even discovered they had the financial flexibility to retire sooner than expected.

Identifying Income Sources

Brittany outlined all potential income streams available to the couple in retirement, including Social Security, investment portfolio withdrawals, and pension income. She carefully considered which income sources to tap first, second, and third in order to minimize the tax consequences of this income over time. This approach allowed the clients to understand how their financial resources could be structured to support their desired lifestyle most efficiently.

Evaluating Pension Payout Options

After reviewing projected returns and tax implications, Brittany guided the couple through their pension choices. Opting for a lump-sum payout (rather than annuitizing the pension) presented the most advantageous outcome. This approach would enable the immediate reinvestment of the lump sum into a diversified portfolio, offering the potential for growth over time. As a result, their investment could ultimately surpass the total value of the annuity payments, creating a more substantial nest egg for the future

Refreshing the Estate Plan

Recognizing the importance of estate planning for their blended family, Brittany worked with an attorney to review and refine the couple’s outdated estate documents. This process involved updating the language within their Wills and Trusts, updating beneficiary designations on their investment accounts, and retitling certain assets. 

A Thoughtful Approach to Financial Planning

Proper financial planning is about creating a strategy that accounts for a family’s unique circumstances, priorities, and long-term goals. By carefully analyzing their retirement timeline, income sources, and estate planning needs, Brittany provided guidance that offered this couple peace of mind as they began this next stage of their life in retirement.

At Brandywine Oak Private Wealth, we believe successful planning comes from understanding each client’s full financial picture and working collaboratively to develop solutions that align with their objectives. Whether navigating retirement, managing complex assets, or structuring a wealth transfer strategy, our advisors take a comprehensive approach tailored to each family’s needs.

If you are looking for experienced guidance on your financial journey, we invite you to connect with us. Call (484) 785-0050, email contact@brandywineoak.com, or visit our website to learn more. And if you’re curious about what our clients have to say about working with us, visit our client testimonials page to hear their stories.

Brandywine Oak Private Wealth is a registered investment adviser. Registration does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.