Strategic Planning
Case Studies
See how strategic financial planning could address common retirement challenges. These scenarios illustrate our approach to helping 401(k) participants build comprehensive wealth strategies.
Mark & Jennifer Davis
Turning "We're Doing Fine" Into "We're Set for Life"
In this scenario, Mark (46) and Jennifer (44) represent a common situation we encounter: diligent savers who've built a $1 million 401(k) through disciplined habits. The challenge they face is a strategic one—their strong saving could potentially lead to higher taxes in retirement than they're paying now.
The Challenge
In this example, the challenge isn't financial—it's strategic. A 401(k) that could potentially double or triple by retirement means Required Minimum Distributions might push them into higher tax brackets. With most wealth concentrated in tax-deferred accounts, this scenario illustrates common vulnerability to future tax increases and the lack of a strategy for efficient wealth utilization.
Our Approach
- Tax Diversification & Roth Conversions: We would model future tax exposure and implement strategic Roth conversions during low-income years to shift wealth into tax-free growth
- Investment Coordination: We would optimize 401(k) allocation, establish tax-efficient brokerage investments, and set up a backdoor Roth IRA to expand tax-free options
- 25-Year Income Timeline: We would build a comprehensive retirement income plan showing exactly when and how to draw from each account
- Charitable & Legacy Planning: We would introduce Qualified Charitable Distributions and donor-advised funds for meaningful giving while managing tax exposure
- Lifestyle Design: We would create a plan supporting their desired lifestyle including travel, volunteer work, and potential early retirement flexibility
Potential Outcome
In this hypothetical scenario, the result would be a transformation from cautious savers to strategic wealth builders, with a diversified mix of tax-deferred, tax-free, and taxable assets. They would have a clear, predictable income plan and a wealth strategy designed to create choices rather than limitations.
More Case Studies
Linda Harper
Finding Clarity and Confidence After Loss
This hypothetical scenario illustrates a common situation: a surviving spouse (58) with $850,000 in retirement accounts who feels overwhelmed managing finances alone. The example shows how our approach would provide not just investment help, but comprehensive guidance.
The Hypothetical Situation
In this scenario, Linda represents someone who never imagined managing family finances alone. After an unexpected loss, she faces unfamiliar paperwork, account statements, and major decisions. With $850,000 in retirement accounts, a $250,000 brokerage account, a paid-off home, and $90,000 in cash savings, she's financially secure on paper but uncertain in practice.
The Challenge
The challenge in this example isn't resources—it's uncertainty and complexity. Key concerns would include account rollovers, creating sustainable income, handling taxes as a single filer, and planning for potentially 30 more years.
Our Approach
- Account Simplification: We would roll over accounts into an IRA, retitle joint assets properly, and integrate everything into a single, understandable portfolio
- Monthly Income Stream: We would create sustainable withdrawals combining brokerage/IRA distributions, insurance reserves, and optimized Social Security timing
- Tax & Estate Updates: We would coordinate with a CPA to minimize the "widow's tax trap" and update the estate plan with proper beneficiaries
- Education & Confidence: We would create simple summaries showing where money is, safe withdrawal amounts, and investment performance
- Future Planning: We would build goals for travel, volunteer work, and eventual downsizing directly into the long-term plan
Mike & Alice Johnson
Turning a 401(k)-Heavy Portfolio Into a Comprehensive Wealth Plan
This example represents high-earning professionals (ages 47 and 45) with most of their $750,000 wealth concentrated in a single tax-deferred account. It demonstrates how we would approach creating coordination and diversification rather than simply encouraging more savings.
The Hypothetical Situation
In this example, Mike represents a VP with income expected to rise from $350,000 to $600,000 over five years, while Alice works part-time earning $55,000. As parents to teenagers and debt-free, most of their $750,000 wealth is concentrated in one 401(k) with minimal diversification.
The Challenge
This scenario faces common challenges: almost all wealth in tax-deferred accounts creating future tax exposure; no cohesive plan connecting investments, savings, and college planning; missed opportunities for Roth conversions and tax-efficient investing; and no strategy for transitioning from accumulation to income.
Our Approach
- Tax Diversification: We would redirect new savings to backdoor Roth IRA and after-tax brokerage; plan annual Roth conversions during lower-income years; use donor-advised funds for tax-efficient giving
- Investment Restructuring: We would place tax-efficient investments in brokerage accounts; keep growth investments in 401(k)/Roth; rebalance other accounts to align with long-term goals
- College & Family Planning: We would establish 529 plans with funding strategies balancing education and retirement goals
- Cash Flow & Risk: We would create appropriate emergency reserves, review insurance, and plan for future goals without disrupting long-term assets
- 20-Year Income Strategy: We would model retirement outlook to smooth early income, optimize Social Security, and ensure sustainable multi-account withdrawals
Karen & David Miller
Turning Retirement Confusion Into a Confident Income Plan
This scenario illustrates a couple (ages 59 and 61) with $1.4 million saved but facing retirement uncertainty. The example shows how our planning process would help them understand not just what they've saved, but how to use it efficiently over 25+ years.
The Hypothetical Situation
In this scenario, after four decades of diligent saving, one spouse has retired while the other plans to continue working. They've accumulated $1.4 million across multiple retirement accounts, plus a paid-off home and $75,000 in cash. They've done everything "right," but now face the complexity of turning savings into sustainable income.
The Challenge
The challenge in this example: knowing when to retire, which accounts to draw from first, how to minimize taxes, and ensuring money lasts 25-30 years. They've built wealth but lack a plan for how it would work for them.
Our Approach
- 20-Year Income Timeline: We would create a phased withdrawal strategy—early years using cash/brokerage to keep income low; middle years for strategic Roth conversions before RMDs; later years shifting to pre-tax accounts with Social Security and Roth supplements
- Social Security Optimization: We would run customized projections to determine optimal filing strategies for maximizing lifetime income while meeting cash flow needs
- Investment Simplification: We would streamline holdings, consolidate duplicate funds, and create a single risk-managed portfolio aligned with their income timeline
- Tax & Legacy Planning: We would build a year-by-year "tax map" with their CPA and update estate documents for efficient wealth transfer
- Lifestyle Planning: We would budget for travel, hobbies, and flexible work arrangements to support meaningful living
Daniel & Rachel Thompson
Building a Life Plan, Not Just a Retirement Plan
This example features young professionals in their early 30s with growing incomes and stock options. It illustrates how we would help create a flexible, coordinated strategy designed to evolve with major life changes rather than remaining static.
The Hypothetical Situation
In this example, Daniel represents a software engineering manager earning $160,000 plus stock options, while Rachel is a marketing project lead making $110,000. They've made good individual decisions—maxing 401(k)s, building savings, owning a home—but thinking about starting a family, they realize they need a coordinated strategy, not just scattered accounts.
The Challenge
This scenario presents common challenges: multiple old 401(k)s across institutions; uncertainty about balancing short-term goals (family, home upgrade) with long-term savings; confusion about Roth IRAs, HSAs, and stock option planning; and no big-picture vision for where finances are leading.
Our Approach
- Account Organization: We would consolidate old 401(k)s into a rollover IRA and align plans with a coordinated investment strategy to reduce overlap and assign specific roles
- Flexible Savings Framework: We would open Roth IRAs; establish taxable brokerage for near/mid-term goals; create a "Family Fund" for childcare, travel, or time off without derailing long-term plans
- Stock Option & Tax Planning: We would build a strategy for incentive stock options to manage exercise timing, minimize taxes, and diversify wealth
- Resilient Structure: We would establish appropriate emergency reserves, proper insurance and estate basics, and diversified investments across tax categories
- Annual Planning Partnership: We would establish regular check-ins for life discussions—career shifts, family changes, new goals—not just portfolio reviews
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