Can Ruth Retire At 62?
The following story is a fictional composition. Names, characters, places, and incidents are the product of the writer's imagination. Any resemblance to actual people, living or dead, events or locales, is entirely coincidental.
Can Ruth Retire At 62?
by T. Claire Kest, CFP®, CAP®
A few weeks ago, Ruth's friend suggested contacting her financial advisor, John Hurlow. At age 62, Ruth held two jobs, she worked as a bookkeeper Monday through Friday and spent her Saturdays at a flower shop in Centertown, Indiana. Her current advisor had told her she needed to work until age 65, but she felt miserable working so hard. While she loved her job at the flower shop, she felt exhausted staring at numbers on the weekdays, but she didn't earn much money as a florist.
Taking her friend's advice, Ruth set up an appointment with the Hurlow Wealth Management Group. During their first meeting, John started by saying, "the only decision I am going to ask you to make today, is do you want to have another meeting. So what prompted you to schedule this meeting?"
Ruth started to cry as she recounted the story of her late husband, George who had worked at the Post Office for two decades. Tragically, he passed away a year ago; he was only 64.
"How did you meet?" John asked.
"I was a freshman in high school, and he was a friend of my older brother's friend. He asked me to prom. It was an awkward date because he really wanted to go with someone else. Years later, when he was home on break from college, he walked into the flower shop to buy Mother's Day flowers. He asked me if I would like to go dancing sometime. When I said yes, he asked for my number. We were married a year later. We were inseparable for 43 years. He was my everything." Ruth paused to stifle her sobs.
"Until November 10, 2024, when his heart just stopped beating." Ruth shared as tears leaked from her right eye.
John offered her a tissue and some comforting words, patiently waiting for Ruth to continue.
"I haven't done much with the investments since then. George took care of it all. I don't really know what to do. My other advisor told me that I need to keep working, but it's hard."
John then shifted the conversation to her personal feelings and experiences with money:
- What was money like when you were growing up? (Her parents fought about money. There was never enough).
- Do you remember your first money memory? (Her mother told her that money was evil).
- Was the flower shop your first job? (It was her second after bagging groceries in high school).
- What would you do with your time if you weren't working? (She mentioned volunteering with animals, traveling and visiting her kids, spending more time reading, and cooking healthier meals).
- You likely had made plans with George and shared hopes and dreams for the future. Can you tell me about those? (They wanted to buy a house on a lake and go boating. He liked to fish. They always wanted to visit France, Italy, England, and Ireland).
- Which of those plans do you still want to do? (She wants to travel, but she doesn't want to go alone. While boating was more of George's passion, she found it relaxing).
- Do you talk about money with your family? (Her parents never talked about money. George spoke to their boys about saving for retirement and managing a budget, but she doesn't talk to anyone about money).
- Is there anything I haven't asked you that is important for me to know? (She doesn't know what to do with George's boat, classic car, and Thrift Savings Plan; everything still sits where he left it).
"Now, let's talk about the numbers," John said. "It's okay if you don't know the answers to all the questions I ask right now. We'll figure it out together."
These were the questions John then asked:
- What is your current income?
- Do you have any debt?
- How much do you spend each month?
- What is the value of your home and any investment accounts?
After answering those questions, John felt confident that he could help Ruth. "What if I told you that you could retire tomorrow?" John asked.
"You're kidding?" Ruth started to cry again. "I would hug you!" She exclaimed.
"Based on the numbers you told me, I know we can help you," John reassured her. "It's going to take a little work to get organized, but if you want to retire soon, you can start planning for your last day of work."
“So what happens next?” Ruth asked, dabbing her eyes with the tissue.
“First, we’ll gather all your financial statements including George’s Thrift Savings Plan and your other retirement accounts, Social Security information, tax return, paystub; I'll send you a list. Then we’ll build a comprehensive financial plan that will give you clarity so you can make decisions with confidence, and achieve comfort in retirement. How does that sound?"
"That sounds wonderful!" Ruth replied.
Over the following weeks, Ruth worked with John’s team. They discovered that with George’s federal pension, her Social Security benefits, and their combined retirement savings, she had a more substantial financial foundation than her previous advisor had recognized. With proper management, these assets could generate reliable income to support her desired lifestyle.
If you or someone you know is seeking financial clarity after a significant life change, schedule an appointment with Hurlow Wealth Management Group. For over two decades, the Hurlow Wealth Management Group has been helping Midwest Millionaires retire securely.
