Income and distribution strategies

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The same married couple as in the portfolio project Option 1 in Module 8, Kim, 55 and Tori, 49 have come to you for retirement advice. Kim has recently retired and is receiving 60% of his salary, $5568.00 gross, a month in retirement pay. Tori is self employed and earns approximately $40,000.00 gross a year. Kim wants to know if he should get a post-retirement job or if they have enough income for him to engage in his hobby full time after working for 25 years. Kim and Tori have two college age children. They recently cashed out some whole life insurance policies and that money will cover 100% of their children's college expenses. Kim has a $200,000 term life insurance policy that will be in place for 10 more years. Tori has a $50,000 whole life policy with $9,000 cash value. Kim and Tori own a house with a fair market value of $315,000 on which they still owe $145,000. They have cash and investments of $400,000 and IRAs worth $75,000 and $50,000. In retirement, Kim and Tori would like to be able to travel at least once a year and spend $5000-$7500 on each trip. They would also like their estate to cover their funeral expenses and leave something for their children. What income and distribution strategies would you recommend and why?

Reference no: EM132770258

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