SUCCESS examples
denise and malcolm: Pre-retirees to retirees
Main Accomplishment: both spouses retire!
Denise, 64, and Malcolm, 63 were both looking to retire once each reached age 66. From our analysis, they could actually both retire already, but they still felt like it was too early to make the jump. A few months later, Malcolm’s most recent project at work was the straw that broke the camel’s back and he wanted out, fast.
We evaluated social security, health insurance costs, retirement income sources, and stress-tested the plan to give Denise and Malcolm the confidence they needed so that they could both step away from working.
Malcolm also had a pension, and we were able to create a plan to maximize his pension to make sure that Denise was in good shape no matter what happens.
Outcome: Malcolm and Denise are both happily retired, traveling around to see the kids and grandkids regularly and are working hard to be the most fit 60-year-olds they know.
tony and Sarah: mid-career tech executive
Tony has spent over 20 years working his tail off, excelling in each role he takes. Naturally, new employers come calling, offering the next challenge, which Tony is always excited to take on. Sarah has been raising the kids full time, and they are succeeding at a high level. With the kids in high school, Sarah is also thinking about what her next chapter will be.
Sarah and Tony want to cover all college expenses for the kids, no matter where they go. They currently attend the most expensive private high school in the area. So while income is high, expenses will also be high for the next handful of years.
In his most recent role, Tony has been well-compensated, but 0ver-worked and hasn’t been able to spend as much time with family as he would like. He knows that time with the kids in the house is limited, and wants to build a better balance, but not at the cost of not covering college or working forever.
After updating his plan, we determined that while Tony couldn’t comfortably retire today and keep the living expenses the same, he could afford to take a significant pay cut now, and still be on track to retire by his mid 50’s.
Additionally, we created retirement tax strategies that will help Sarah and Tony pay hardly any taxes during their retirement years. This shaves off a few years of needing to work, making the lifestyle decision easier to make.
We also helped Tony create a strategy in dealing with his RSU’s, ESPP, and stock options. While he is willing to take on some risks with portions of his wealth, he’s no longer reacting to stock moves, or shooting from the hip. He has a clearly defined strategy.
While Sarah and Tony don’t yet have to worry about estate tax concerns, they want to leave a lasting legacy to their kids and future grandkids. We implemented strategies to accomplish this goal, and held them accountable in completing their estate planning.
Outcome: now, Tony’s decision is not if he can reach his financial goals, but what type of life he wants to live during the next handful of years and how he can be there for his kids more.
Main accomplishment: Freedom to change career plans
rob and amber: physicians with a young family
Main Accomplishment: solid foundational plan
Rob and Amber are both physicians with two young children. After all their training, they were ready to get into the dream house for themselves and their kids, finally upgrade their cars, and take some of the trips they have been putting off.
When looking at selling their residency/fellowship house and buy their forever home, we had them look back at all of the purchasing costs and capital improvements to increase the basis, or ‘purchase price’ of the starter home, to reduce the tax bill on the gain of the house. They ended up saving around $11,000 in taxes on the gain.
For the new house, we looked at what they could technically afford but would make them house poor, what would stretch the budget for the first few years but would be feasible, and what would be easily doable and maximize wealth. From the planning we had done, they felt confidence in the second option to get into the dream house now, rather than play catch-up later.
Rob and Amber have also implemented a student loans and personal loans repayment strategy that maximizes their wealth creation and options, especially should either want to change their work situation down the line.
We made sure their risks were addressed: an appropriate safety cushion, and the right amount of disability and life insurances.
Rob and Amber are now maxing their retirement accounts, and are investing a large chunk of their income for retirement, kid's’ education, kids’ house down payments, and overall wealth.
Outcome: now with the foundation built, they are well on their way to being financially independent well ahead of many of their peers, even though they took the long route career-wise.