Case Study 2: Retirement Planning Provides Confidence and Peace of Mind
Tom and Katie read about Old Dominion Capital Management, Inc. online. A highly compensated executive, Tom was hoping to retire at age 65, but was not certain he could afford it. His company stock comprised a large percentage of his investment portfolio, and while he tried to watch his investment accounts on his own, he was an extremely busy individual and was not able to make his investments a top priority. Katie worked full time as a nurse and wanted to retire at the same time as Tom.
When they came to us, Tom and Katie had many different investment accounts at various banks and investment institutions, but an alarmingly large percentage of their investments were in Tom’s company stock. There really was no cohesive investment strategy, and their investments were not being actively watched. Although Tom’s company was doing well at that time, he realized that its future was somewhat unpredictable.
The first issue our team addressed was the couple's asset allocation. Over a period of three years, we worked to systematically sell off portions of Tom’s company stock in an advantageous way. We also collaborated on an investment strategy that involved diversifying assets across many types of investments to deliver a more balanced approach as Tom and Katie neared retirement. Our team monitored the investment strategy and made proactive investment decisions on their behalf.
To determine Tom and Katie's long-term retirement goals, we discussed their annual desired expenditure during retirement and sources of expected retirement income. We analyzed their goals and completed a full retirement cash flow analysis. Through this analysis, we were able to determine that Tom and Katie could, in fact, afford to retire at age 65 and maintain a comfortable standard of living. We worked closely with them to monitor the retirement plan and ensure their financial situation remained on track for the long term.
Today, Tom and Katie have a much more diversified portfolio that fits their level of risk tolerance. With a detailed understanding of their overall financial picture and the knowledge of how their assets will support them in the future, they are now nearing retirement with confidence and the peace of mind that their portfolio will meet their long-term needs.