Case Study 1

Big Picture Planning:

Angela & Dan

Ages: 48 & 50

Main Goals

Invest inheritance, fund their kid’s college education, leave a legacy to their kids and retire in their early 60’s.

Angela and Dan inherited cash from Angela’s mother. Their main focus was to put their idle cash “to work”. As we worked together, it became clear that the most pressing item they needed to address was to care for their two school age children, by providing them a college education and a legacy. They were short on their education funding and had no estate planning documents. They both had hectic schedules and needed to get a handle on their finances and how to align their goals with their money.

Our Strategy for Angela and Dan:

• They funded tax optimized 529 plans using a portion of the inheritance. By using a front-end approach their money worked for them; by maximizing their investment time horizon for account growth, the less they had to save overall.
• We made sure they had a guardian for their children, assets protected in a trust and no probate costs for their estate.
• We determined how much life insurance they would need.
• Legacy assets for the children and a portion of long-term care expenses will be funded with backdoor Roth IRA contributions and a Roth IRA conversion strategy. The taxes were paid with the inheritance.
• They invested the remaining assets in a tax-efficient portfolio to continue funding their retirement savings.

We partnered with them to provide the support and guidance they needed to feel confident to move forward on a clear path to their goals!