In this real-life case study, we meet a Switzerland-based client who has spent his career as an advisor within the pharmaceutical industry. He worked hard for many decades and recently decided that he would like to slow down and retire early. Throughout his professional career, he built up a healthy investment portfolio and has now turned to his Julius Baer Wealth Planner to see if retiring in his early sixties is realistic.

Financial goals for retirement

The client had a number of financial objectives which took into account the parts of his life that are most important to him. His first priority was his children; it was very important to him to provide a substantial gift to each of his now adult children to put towards their career or property. Having long dreamt of owning a holiday home in the south of France where he could spend part of his retirement and pursue his love of golf, his second priority was to invest in a holiday home. Finally, and perhaps most importantly, he wanted to ensure his financial security by supplementing his pension fund.

Road-mapping financial success

Recognising these wealth goals and the need for a tailored plan, senior wealth planner Thomas Bopp helped to create a roadmap that involved a seamless transition for his client. Through a series of face-to-face consultations supported by Julius Baer’s digital 360-degree planning tool, Thomas was able to plot out the client’s financial strategy and create a detailed plan to help the client realise his goals.

“It was the first time he properly examined his wealth in its entirety,” explains Thomas. “When he looked at it, he was quite surprised. There was more than he expected and the distribution between individual asset classes was different from assumed. His ‘private balance sheet’ was the basis to start planning towards retirement.”

Thomas added: “We constructed his retirement plan in more detail by distributing the financial needs, goals, and events on a timeline. We were then able to run the figures through our planning tool to create a retirement plan and an agenda to determine what’s to come. We now have a record of the important life events that will require the client, relationship manager, or wealth planner to act both before and after retirement. The roadmap that we created ensures that no important deadline or dates are missed and increases the likelihood that his financial objectives will be achieved.”

Together, they devised a number of strategies. The first tackled post-retirement planning and wealth transfer. “Estimating retirement expenses is crucial,” says Thomas. “From housing and healthcare to travel and hobbies, it is vital to account for potential expenditures to ensure a comfortable lifestyle post-retirement. Furthermore, factoring in inflation and tax implications is essential to maintain financial stability over the long term.”

In line with the client’s desires to provide generous financial gifts to his children, Thomas provided guidance on estate planning to ensure a seamless transfer of wealth.

They then turned their attention to real estate advisory. Given the client’s dream to own a holiday home in the south of France, the client turned to his relationship manager, who was able to not only provide a financing solution for the property but also clarify several legal and tax issues in collaboration with Julius Baer’s network of external service providers.  

Finally, Thomas ensured his client’s wealth was properly structured ahead of retirement. The basic investment principles to follow when planning for retirement are simple: the closer you are to needing money, the lower the risk you should take. The further out, the more risk and potential return you may want to seek. You also need to consider longevity risk, which is the possibility to outlive your savings. In this particular case, the client’s wealth projection showed that this was not a concern and he should be able to maintain his standard of living throughout his retirement. Accordingly, he opted for a strategy that aims at generating regular income using a discretionary mandate. With the capital earmarked for the children, he opted for a separate portfolio tailored to the children’s needs. 

Creating an adaptable plan for your shifting needs

Through collaboration and strategic wealth planning tools exclusive to Julius Baer, the client planned his transition into early retirement with confidence. He felt sure he could provide generous financial gifts to his children, realise his dream of owning a home in the south of France, and embark on retirement with peace of mind. Thomas remains committed to supporting his client throughout his retirement journey, as his financial and personal requirements are certain to shift with time. “In my experience, 80 per cent of those who have a plan have to recalibrate three years later,” says Thomas. “From your own situation to industry regulations, circumstances change. That’s a certainty. A plan needs adaptability because the future is rarely set in stone.”

For more client case studies like these, spanning all of life’s major milestones, download our full guide below.