Two retirement priorities with different timing
A couple approaching retirement wants to fund a near-term home adaptation and preserve resources for a long retirement. They hold a liquid account, a diversified investment account and a home in which they intend to remain. One spouse values part-time work and community involvement, while the other expects to provide unpaid family care. A proposed product offers an attractive long-term illustration but restricts early withdrawals. The couple has not yet agreed which spending is essential, when the adaptation must be completed or what income will remain after work ends. The planner is asked to recommend a funding order. No exact tax deduction, pension award or market return is guaranteed in this scenario.
1. What information is needed before selecting a product?
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Clarify the adaptation timing and cost, essential retirement spending, available income, liquidity restrictions and each spouse’s preferences and care commitments.
2. How should the tradeoff be explained?
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Separate near-term liquidity from long-term investment needs and compare alternatives under documented assumptions. A favorable long-term illustration does not justify sacrificing a known essential near-term payment.