A 55-year-old business executive was referred to us in October 2006. After burning out from the stress of his job, he resigned his position of 24 years. He was not able to retire for another 6 years unless he accepted a much lower standard of living. The client was willing to work to provide 75% of needed income before retirement. The remaining 25% would need to come from the portfolio. We accessed his retirement assets through substantially equal periodic payments to avoid the 10% early withdrawal tax penalty.
We determined his risk tolerance was moderately aggressive and invested accordingly within Small Cap stocks, Mid Cap stocks, Large Cap stocks, International, Commodity, and Emerging Market funds.
After 3 months our client determined he needed an additional $30,000. We immediately informed him the Investment Policy Statement created after this withdrawal, would not achieve his retirement goal in 6 years. He agreed to increase the aggressiveness of his portfolio and even though he ended up taking an additional $60,000, even with the stock market drop in 2008, our client was able to retire in 2013. He remains so today.