From Kiplinger · · 2m
Retired Couple with $10M Net Worth Questions Aggressive Investing
Retired couple with $10 million net worth asks if they should keep aggressive investments.
In brief
Retired couple with $10 million net worth asks if they should keep aggressive investments. Retired couple with $10 million net worth questions if they should maintain aggressive investments for heirs. Originally reported by Kiplinger.
Retired couple with $10 million net worth
A 72-year-old couple retired with $10 million net worth, $3 million in real estate including a rental house generating $1,500 monthly net income and $180,000 mortgage.
Investment portfolio details
They hold $3.8 million in IRAs, $850,000 in Roths, and $900,000 in a Generation-Skipping Trust they manage.
Monthly income sources
They receive $9,600 monthly in Social Security, pension, and annuity payments.
Investment strategy question
The couple asks if their aggressive investment strategy is appropriate for their financial situation.
Expert opinion on risk
Phillip E. Battin, CEO of Ambassador Wealth Management, says their $10 million net worth and $9,600 monthly income meet their needs without excessive risk.
Rental property considerations
Battin notes potential risks with the rental property but says the couple could sell it if needed to generate income.
Tax efficiency focus
Robert Jeter, CFP at Back Bay Financial Planning, emphasizes tax optimization for high-net-worth retirees.
Roth conversion advice
Brandon M. Cox, founder of Coastline Complete Wealth, recommends Roth conversions to reduce future tax burdens.
Inheritance tax implications
Cox explains that IRA distributions after death may be taxed at unfavorable rates for heirs.
Spending plan importance
Chris Berkel, president of AXIS Financial, says understanding spending goals is critical for risk assessment.
Spending level impact
Berkel states that $150,000 annual spending versus $400,000 annual spending creates vastly different risk profiles.
Emotional risk tolerance
Berkel explains that emotional reactions to market downturns vary widely among investors.
Key recommendation
The couple should balance aggressive investments with tax efficiency and emotional risk tolerance.
Final advice
Experts recommend reviewing investment strategy with focus on tax efficiency and spending needs.
What matters most
Retired couple with $10 million net worth questions if they should maintain aggressive investments for heirs.
