Planning legacy and inheritance for their grandchildren, with the help of Sagewell

by: Jocelyn | in 403(b), Education

After John, from Augusta Maine, parents’ left him a small inheritance when they passed, he knew he wanted to return the favor for his grandchildren.

John and his wife Marie, spent their years living modestly. They used the small inheritance from John’s parents to help purchase a house and were able to enter their retirement mortgage free and with $300,000 in savings to put into their 403(b) by age 60.

At 65, John and Marie had been enjoying spending their 5 years of retirement with their 4 children and 6 grandchildren, when one of their children announced she was pregnant again.

Not enough in his 403(b) plan

With a soon-to-be 7th grandchild on the way, John wanted to make sure he had enough saved in his 403(b) for a substantial amount of money to be left behind for their grandkids, as an inheritance to pass on and cement their legacy.

He began to look into his 403(b) account and realized with his monthly $1,000 withdrawals and the 3% fee he was being charged, he would not have nearly as much as he wanted to leave behind. The fees in particular had compounded to a massive amount over time, and now John and Marie were looking at leaving next to nothing for their grandchildren, even with their original inheritance.

That’s where Sagewell came in

That’s where Sagewell came in. With Sagewell’s much lower monthly fee and savings program, John realized he would be in a much better situation. With a fee of only .5% leveraging a Sagewell IRA vs. the 3% he was paying now on his 403(b), he would be in a drastically better position to live out the rest of his life with Marie, plus leave behind a legacy of plenty for their grandkids.

A free Sagewell Retirement Advocate mapped out two scenarios, one with Sagewell vs. one without, helping John see what it would look like if he had their normal monthly withdrawal, but 19 years from now he would have saved the amount that John and Marie wanted to leave behind as a legacy for their grandkids, and more.

The results were breathtaking

Leveraging Sagewell for monthly savings of $50 from cashback, renegotiated monthly bills and more, plus drastically reduced fees, made a difference that really compounded. 

With Sagewell, John and Marie’s 403(b) would actually grow rather than shrink.

With all the figures in, and assuming 7% market returns, with Sagewell John and Marie still had over $530,000 in their 403(b) – it had actually grown! – but with her current plan they only had $78k left. John couldn’t believe the difference! 

Helping out partners like John and Marie is why we built Sagewell – reach out today for a free consultation with one of our Retirement Advocates. We are passionate about helping people just like you!

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*John’s story is an amalgamation of stories from Sagewell members. We have thousands of members just like you, who are retired and looking to ensure financial security while retired.

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