Early Career
Scenario
- Starting as an attending physician in a few months
- Six figure student loan balance
- Car loan and some personal debt form residency
- $20,000 401(k) from old employer
- $7,000 Roth IRA
- 403(b) offered through new employer
- Enjoys learning about financial markets and has some extra time on weekends to dedicate to managing own investments
Goals
- Optimize Public Service Loan Forgiveness (PSLF)
- Purchase first home in 1-2 years
- Start a family in next 3-5 years
- Start an emergency fund and increase yield for cash on hand
- Minimize taxes on new higher salary
- Create structured saving plan to balance paying off debt, saving for retirement and pursuing other short term financial goals
Cost:
- $416.67/month
- Strategy and investment recommendations are made by financial planner
- Implementation of investments is responsibility of client
- If client decides to delegate investments in future, they can do so at any time
Mid Career
Scenario
- Married CRNA and Physicist with 2 kids, age 3 and 5
- Debt free other than mortgage
- $200,000 in bank from sale of last home
- $150,00 Rollover IRA
- $75,000 in each spouse’s Roth IRA
- $300,000 in current employer’s 403(b)
- Have never seriously reviewed their life insurance or estate plan, but know they should look at this now that they have young kids
- Investment accounts were all set up years ago, but have no clear investment strategy
Goals
- Get finances more organized
- Invest money sitting in bank account that is not earning much interest
- Create a “set it and forget it” monthly savings strategy to meet goals
- Save for college for kids
- Review life insurance needs
Cost:
- $250/month for ongoing financial planning
- $1000/quarter is billed from $500,000 managed investments
- No investment management fee on the $300,000 in current employer 403(b) since it is not being managed directly
- Fee is calculated based on asset balance at end of each quarter
- Monthly fee is reduced to $166.67 when managed assets reach $600,000
Approaching Retirement
Scenario
- Doctor and spouse planning to retire in next 2 years
- Pension that offers a lump sum or monthly annuity option
- $1,000,000 403(b)
- $500,000 taxable brokerage account
- $300,000 Roth IRA
- $700,000 Rollover IRA
- Significant capital gains in brokerage account
- Feels they have saved well, but wants second opinion on if they can maintain lifestyle through retirement
Goals
- Get opinion on taking lump sum or annuity option from pension from an independent-fee only financial planner
- Review retirement projections in detail
- Navigate taxes efficiently on brokerage account
- Optimize when to begin taking Social Security
- Plan for healthcare costs when no longer on employer healthcare plan
- Change investment strategy from growth oriented, to more conservative as retirement approaches
- Minimize taxes over lifetime
Cost:
- $2,250/quarter is billed from $1,500,000 of managed investments
- Fee is calculated based on asset balance at end of each quarter
- No monthly planning fee
- No investment management fee on the $1,000,000 in current employer 403(b) since it is not being managed directly
