Situation

Mike and Brenda have spent a lifetime building careers and raising a family in Southern California. After 32 years of marriage, they share not only a deep bond but also a shared dream for the future. Mike, a project manager who has devoted over three decades to the construction industry, and Brenda, a registered nurse of 28 years, have worked tirelessly to provide stability and opportunities for their three children—Holly, Grant, and Samantha.

Goals
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Now, after years of hard work and commitment, they’re beginning to see their retirement on the horizon. In a perfect world, they’d like to retire in the next six years and spend their days enjoying the fruits of their labor. But Mike and Brenda’s vision of retirement comes with some heavy questions—and fears. Rising costs of elder care loom large in their minds, especially with Brenda’s mom currently in assisted living, an expense they help offset. Both have witnessed firsthand how healthcare costs can impact a family, and they wonder how they’ll manage if either of them faces health challenges down the road. They’re equally concerned with maintaining a lifestyle they love and even hope to assist their children with purchasing their first homes.
Then came a shift. Mike recently received a $500,000 inheritance following his father’s passing—a bittersweet gain that reminded him of life’s unexpected turns. With this sum, they knew they had to make the most of the opportunity, especially if they were to protect their family’s future.
Unsure of where to begin, they looked to trusted friends, Tony and Elsa, who shared how Willett Wealth Planning had guided them through similar uncertainties. Armed with a recommendation and the realization that they needed a seasoned guide, Mike and Brenda decided to reach out.

Financial House Components

‍As Mike and Brenda stand on the threshold of retirement, their financial world tells a story of years of hard work, steady growth, and a few untended corners waiting for careful planning.
They’ve built up a sturdy foundation in their bank savings, totaling $520,000— a reserve that gives them peace of mind as they imagine their future. Over the years, Mike has contributed faithfully to his 401(k), with a current balance of $100,000. He’s making the most of his employer’s matching program, setting aside 5% of his salary while his company meets him halfway. However, in the busyness of life, three older 401(k) accounts remain untouched, holding a combined $400,000—funds that have yet to be actively managed toward their retirement goals.

Brenda, with her dedication to patient care, has been growing her own nest egg through her hospital’s 403(b) plan, which now has a balance of $200,000. Like Mike, she contributes 5% of her salary, preparing for a retirement she hopes will include not only relaxation but also giving back to her family. Additionally, both Mike and Brenda have modest Roth IRAs—Mike with $25,000 and Brenda with $15,000—symbolizing years of saving, even with the ups and downs of life.Their home, a cozy Southern California residence they purchased in 1998, reflects their journey and the love they’ve poured into it over the years. What once was a $350,000 investment is now a $1.9 million haven, a testament to how far they’ve come. Alongside it, their vacation cabin, bought in 2015 for $300,000 and now valued at $725,000, provides an escape to the mountains and a modest source of extra income when rented out on Airbnb.

Life’s costs are ever-present, though. They carry a $380,000 mortgage on their primary home and $320,000 on the cabin, both with 27 years remaining. But the vehicles they drive—the 2018 Toyota 4Runner and the 2021 Ford Explorer—are paid off, symbols of a lifetime of wise decisions.

With all these pieces, they now look to the future, hoping to transition from a life of earning to one of meaningful spending, family support, and memories made together. This is where their journey needs careful guidance to align their resources, their hopes, and a sustainable, secure retirement.

Their Approach  and Roadmap

Mike and Brenda sat down with our team, feeling the weight of decisions ahead. They knew they needed a roadmap but feared they might overlook something essential. Without careful planning, their dream retirement and the legacy they hoped to leave their children could be at risk. So, together, we crafted a financial forecast that laid out their hypothetical future, showing them what their current choices could yield—and where they might fall short.

We began with their bank savings. With Mike’s recent inheritance boosting their accounts to $520,000, they already had far more than the typical goal of six months’ expenses saved. We recommended keeping $100,000 on hand for immediate needs and emergencies, then investing the rest to work toward long-term goals. This move would ensure they didn’t miss out on potential growth that could carry them through retirement.

Turning to their employer retirement accounts, we discussed how their current contributions to Mike’s 401(k) and Brenda’s 403(b) might not be enough to secure the retirement they envisioned. With such a strong safety net in the bank, we recommended maximizing their contributions each year until retirement. By increasing these contributions, they could reduce their taxable income by over $50,000 annually and set the stage for even more growth within their retirement accounts.

One concern loomed large: Mike’s old 401(k)s, which sat unmanaged and fragmented. To make the most of these accounts, we suggested consolidating them into a single, professionally managed IRA. With this step, Mike could improve his overall asset allocation and prepare for a sustainable income strategy once they retired. Consolidating also meant he’d finally have a plan in place for these funds, ensuring they contributed to their future security.

Then we examined how to invest $400,000 of Mike’s inheritance. By opening a fee-based investment account, we would create a balanced portfolio that aligned with their risk tolerance and goals. This move would build another layer of financial security, separate from their retirement accounts but ready to support their later years.

As we reviewed their tax strategy, we knew this was a critical area. Much of their current retirement savings would be taxed as ordinary income. With potential tax rate increases in the future, we discussed converting some of their funds into Roth IRAs, which would allow for tax-free distributions later on. This conversion strategy is one we’ll revisit often as they move closer to retirement.

Protection planning was another key concern. We recommended keeping their current term life insurance policies until rates increased at ages 72 and 71 for Mike and Brenda, respectively. Additionally, we advised looking into an umbrella policy to provide extra liability protection, especially with their rental cabin. Lastly, we discussed the option of purchasing a Joint Life Long-Term Care policy to help cover future elder care costs, adding yet another layer of peace of mind.As for estate planning, we emphasized the need to act swiftly. Without a plan, they risked leaving their children and each other unprotected. We connected them with three experienced estate attorneys who could help them create a trust that preserved their legacy and respected their wishes.

Since Mike and Brenda have hopes of retiring a little early, we talked through the timing of Social Security and Medicare. Retiring before 65 would require navigating Medicare options and would impact the timing of Social Security, which we advised delaying if possible. In addition, working until age 65—or even 66 or 67—would give them more freedom to help their children with weddings and first home purchases.

By the end of our meeting, Mike and Brenda could see both the possibilities and the pitfalls that lay ahead. With guidance and a clear strategy, they felt confident they could sidestep potential mistakes and make choices that would secure the life they’ve worked so hard to build.

The Summary

As Mike and Brenda looked over their forecast, a sense of clarity replaced the worry they had initially felt. They now understood that working until 65 would allow them to retire with confidence, and they felt empowered with a practical understanding of their finances and spending approach. With a flexible plan in place, they knew they weren’t locked into any single decision—their future had room for adjustment, dreams, and even the unexpected.

They also realized the value of having a trusted guide on their journey. Rather than worrying over each financial question alone, they knew they had a team that could adapt their plan as life evolved. With our commitment to meet three times a year, Mike and Brenda felt assured that they’d be supported every step of the way, ready to address any change, large or small.

As they left our meeting, they expressed gratitude, not only for the planning but for the shared journey ahead. Together, we looked forward to helping them achieve the retirement of their dreams and celebrating each milestone along the way.

Note: The above case study is hypothetical and does not involve an actual Willett Wealth Planning client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Willett Wealth Planning is engaged to provide investment advisory services. ‍‍

Situation

SituationRetirement was no longer just a dream on the horizon for Matt and Loree; it was fast approaching, and the urgency to prepare could no longer be ignored. After 41 years of marriage and decades of hard work, they knew it was time to focus on a future where they could enjoy the fruits of their labor.
Living in Riverside, California, Matt, aged 63, and Loree, 64, had built a life they were proud of. Matt had dedicated over 30 years to management at Home Depot, while Loree thrived as a publicist for nearly three decades. Together, they raised four children—Kendall, Chase, Jordan, and Charlie—and were ready to start a new chapter, where work was optional.

Yet, they were facing a dilemma. Matt was ready to retire completely, eager to embrace a life free from work, while Loree, who loved her career, was contemplating continuing for another few years. But with a lifestyle that came with significant expenses, they found themselves uncertain. Could they maintain their current standard of living if they retired now? Should they consider downsizing their beloved home?

With these questions weighing heavily on their minds, Matt took the first step. He scheduled a 30-minute call with Willett Wealth Planning, realizing it was time to bring in experts to help them navigate this crucial phase. During that conversation, he expressed his eagerness to retire while acknowledging Loree’s wish to ease into retirement on her own terms. They both agreed it was time to seek professional guidance and take control of their financial future.

Laying Out the Financial Landscape

‍Our team got to work immediately. After thoroughly understanding Matt and Loree’s concerns and aspirations, together we created a comprehensive financial forecast to illuminate their path forward. The stakes were high; Matt and Loree needed clarity—and fast.

Their financial picture was complex. With Matt’s $150,000 salary and Home Depot stock amassed through his 401(k), along with Loree’s fluctuating $100,000 base salary plus bonuses, they were in a strong earning position. But their household expenses were high, averaging $14,000 a month, and they had a hefty mortgage balance of $1.4 million on a home valued at $2.7 million.

They needed to make swift decisions. Would they be able to sustain their spending once they stopped working? Could they remodel their backyard, a project they had long envisioned? And what about the looming tax implications on their retirement distributions?

Strategic Decisions for a Secure Future
‍Together, Matt, Loree, and the Willett team prioritized key areas:

1. Growing Cash Reserves: To create a cushion, Matt and Loree needed to boost their savings to at least six months of expenses—$96,000—within five years. By tightening their budget now, they could reach this target.
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‍2.   Backyard Remodel: They were set on revitalizing their outdoor space with a $150,000 budget. Willett Wealth discussed financing options, looking to avoid jeopardizing their retirement plans.
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‍3.   Matt’s 401(k) Strategy: With Matt nearing retirement, We explored an “in-service withdrawal” option to optimize his Home Depot stock using the Net Unrealized Appreciation (NUA) strategy, potentially saving them thousands in taxes.
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‍4.   Consolidating Loree’s Accounts: By rolling over Loree’s old 401(k)s into a fee-based IRA, they achieved a more streamlined investment strategy, setting the stage for a sustainable income stream in retirement.
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‍5.   Social Security Timing: The decision was crucial. For Matt, delaying benefits until age 66 could provide stability if he retired within three years. For Loree, waiting until age 70 could maximize her benefits if she chose to work longer.
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‍6.   Tax Strategies: Given the risk of higher future tax rates, they discussed transitioning to Roth 401(k) contributions and considering annual Roth conversions post-retirement to reduce tax burdens on their retirement income.
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‍7.   Protection and Estate Planning: We emphasized the importance of keeping their current term life policies until premiums increased in their early 70s and recommended an umbrella policy for additional liability protection. Estate planning, which had long been on their to-do list, was no longer something they could put off—they needed to get their legal documents in order to protect their family.

The Outcome

‍The urgency to get everything in place was palpable, but with us guiding them, Matt and Loree finally had a clear vision. For the first time, they could see their future with confidence. They understood their finances better, knew what they could afford, and felt empowered to make decisions that would allow them to retire on their own terms.

Matt’s dream of fully stepping away from work while Loree slowly transitioned into retirement was no longer just a wishful thought. It was a reality within reach, all because they took the bold step to seek the right guidance before it was too late.

As they moved closer to making work optional, they were no longer second-guessing their choices. With Willett Wealth Planning by their side, they had the clarity and plan they needed to embrace retirement—confidently and on their terms.

Note: The above case study is hypothetical and does not involve an actual Willett Wealth Planning client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Willett Wealth Planning is engaged to provide investment advisory services.

Situation

‍Steve and Janet's journey toward a stable and fulfilling retirement was about to take a different turn. After a life of hard work and careful saving, they’d built a modest but comfortable financial foundation. Steve, a former business owner, sold his firm six years ago, and he and Janet have been savoring life within their means, enjoying the company of their three grown children: Jennifer, Laura, and Kevin.

But over the past several years, an unexpected challenge emerged. Steve, who had always overseen their finances, began showing signs of Alzheimer’s and was recently diagnosed. Managing their finances—from paying monthly bills to overseeing investments—had always been his domain. Janet, capable yet uninvolved in the financial details, had trusted Steve’s judgment and passion for managing their money.

Now, facing this new reality, Janet recognized the importance of stepping up to manage their financial path forward. After consulting with a few friends, she received a recommendation from her friend Evelyn to speak with Willett Wealth Planning. With Steve’s blessing, she and their oldest daughter Jennifer reached out to us, beginning a new chapter of partnership and guidance.

During our introductory call, Janet shared her concerns and hopes. She needed guidance to navigate her financial responsibilities with confidence, especially with Steve’s condition changing their needs. Together, we assessed her goals, cash flow, and assets, looking at each piece carefully to build a plan that Janet could feel secure about.

Guiding Janet Through Their Financial Picture:
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With these details, we worked to develop a clear, personalized strategy for Janet. Our focus is to ease her into financial management, providing her with the tools and guidance to feel confident and in control.
As her trusted financial partner, we’re here to be her guide—making it possible for Janet to focus on spending time with Steve and their family while feeling reassured about their financial future.
When Janet and Jennifer first sat down with Willett Wealth Planning, we began by creating a comprehensive financial forecast that visually mapped out their potential future. This forecast, built around their unique situation, helped Janet gain a clearer picture of how each element of their finances could evolve over time. With her daughter Jennifer by her side, Janet walked through each hypothetical scenario with us, feeling supported as she began to understand the steps she’d need to take.
As we reviewed her projections, we presented tailored recommendations to guide Janet on this new journey:

3.   Bank Savings
‍Janet noted early on that she wasn’t sure why Steve had kept so much in the bank. We recommended she decide on a comfortable balance for cash reserves, suggesting that $100,000 would provide a sufficient cushion. The remaining cash, we suggested, could be invested in a diversified portfolio more suited to their long-term goals.

2. Annual Business Sale Payout of $100,000
‍With six years left of payments from the business sale, Janet was concerned about what would happen once those payments stopped. In our financial plan, we demonstrated that their accumulated savings could comfortably cover their expenses when this payout ended, providing her with peace of mind that their retirement lifestyle would be secure.

3. Investment Account at Schwab
‍Steve had enjoyed managing this account, primarily holding stocks for the long term and selling when necessary. After assessing Janet’s tolerance for risk, we determined the portfolio was too aggressive for their current needs. With Steve and Janet’s approval, we began the transition to a fee-based managed account with our team, and, after consulting with their CPA, devised a gradual three-year strategy to shift toward a more conservative portfolio. Additionally, we rolled over Steve’s three old 401(k) accounts into a fee-based IRA. This move allowed for improved asset allocation, better aligned with their goals, and positioned them for a sustainable income distribution strategy in the future.

4. Taxation Considerations
‍Since all of their savings are after-tax, Janet and Steve find themselves in a unique, advantageous position. Without required minimum distributions (RMDs) to worry about, they’re less vulnerable to rising tax rates in retirement. We explained how this setup gave them more flexibility and discussed strategies to preserve this benefit in the years ahead.

5. Long-Term Care Coverage
‍Seventeen years ago, Steve and Janet had purchased long-term care policies, but Janet was unclear on the specifics of their coverage. We reviewed the policies with her and set up a call to confirm their benefits. While the policies didn’t cover everything Steve might need, Janet now understood her options and had a clearer idea of what to expect if she activated the coverage.

6. Estate Planning
‍Janet and Steve had portable wills but not a Living Trust. We explained the importance of establishing a Living Trust, especially given Steve’s health. This would simplify the inheritance process, protect their estate, and ease any future burdens on Janet and the family. We provided recommendations for reputable estate planning attorneys to help them get started promptly.

The Summary
With a thoughtful and well-organized strategy in place, Janet gained a sense of empowerment, realizing she was more than capable of overseeing their finances. Her confidence grew as she grasped how to approach spending, manage investments, and prepare for the future. With Willett Wealth Planning as her guide, she felt secure knowing that both her and Steve’s well-being—and their legacy—were on a solid foundation.

Note: The above case study is hypothetical and does not involve an actual Willett Wealth Planning client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Willett Wealth Planning is engaged to provide investment advisory services.