Love and Money: When Old Bear Met Honey

At 62, Old Bear is considering marriage to Honey, age 44. But love has its logistics. With $1 million in Roth accounts, $708,000 in retirement accounts, and a $200,000 mortgage, Old Bear is also eyeing a $440,000 home renovation. Meanwhile, Honey has $20,000 in a 401(k) and receives child support for two kids. Here are the legal and financial implications:

• Pros of marriage: Higher joint tax brackets, Social Security survivor benefits, possible income tax reductions
• Cons: Child support may vanish, and Honey’s benefits might be affected
• Advice: Marry for love—not money. But do your estate planning, update your will, and consider a prenup to keep things fair and clean.

Dividing Assets Without Dividing Spirits

Sebastian from Virginia is going through a separation and wants financial clarity.

• Inventory all joint and individual assets
• Separate joint credit cards, loans, and shared responsibilities
• Be strategic with retirement accounts and home equity division
• And most importantly, hire a divorce attorney who understands the tax implications

Paul with the Big Wallet: The Burn Rate Blues

Paul, 59, earns $500K but is ready to slow down. He plans to retire by 62, after a couple of lower-income years ($250K/year). His $2.3M savings include $1M in brokerage, $1M in tax-deferred accounts, and $2M in home equity. With $155,000 in retirement expenses, and Social Security not starting until 66, he’s worried about a high 6.7% withdrawal rate early on.

Big Al and Joe’s tips?

• Stretch part-time work a few more years
• Cut down expenses or reconsider the $550K vacation home
• Aim for a 4% withdrawal rate for sustainability
• Use smart loan options (home equity over TSP)

The Aspiring Adventurer’s Early Escape Plan

At 51, a single woman from Oregon is planning to retire by 58. She has $1.1M saved and a strong pension ($80K/year). With go-go years projected at $100K in spending and slow-go years at $80K, she’s set for success.

Big Al and Joe approve, noting a low 2.3% withdrawal rate at 58 and an even better setup once Social Security kicks in. Their suggestion?

• Flip her current contributions to Roth to minimize taxes later
• Consider Roth conversions in low-income retirement years
• Enjoy the fruits of her preparation—but plan for flexibility

Home Renovation Headaches: Paul’s $70K Question

Paul’s home improvements come with a cost: $70K. He’s debating between a TSP loan (3.4%) and a traditional loan (7%). Big Al and Joe advise:

• Skip the TSP loan—those come with repayment risks and tax headaches
• Go with a home equity loan or conventional loan
• Reduce TSP contributions temporarily to free up cash flow, but don’t abandon low mortgage rates (his is 3.25%)

The Emotional Math of Retirement

Financial planning isn’t just numbers—it’s nerves. Big Al and Joe highlight how seeing your account balances drop too fast can cause retirees to panic, even when they’re financially fine.

Key takeaways?

• Don’t overlook the emotional impact of early withdrawals
• Extend work for peace of mind—even if it’s just part-time
• Consider downsizing or selling unused assets to ease cash flow pressure

Final Thought:
Whether it’s finding love at 62, splitting assets, or timing Social Security just right, retirement is as much about smart choices as it is about knowing yourself. Want to retire comfortably? Make a plan that fits your life—and your personality.

Intended for educational purposes only. Opinions expressed are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Neither the information presented, nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Consult your financial professional before making any investment decisions. Opinions expressed are subject to change without notice.

IMPORTANT DISCLOSURES:

• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC. A Registered Investment Advisor.

• Pure Financial Advisors, LLC. does not offer tax or legal advice. Consult with a tax advisor or attorney regarding specific situations.

• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.

• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.

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