At KFA Private Wealth Group, our greatest motivator is to help our clients succeed by deciphering the complex financial challenges that are holding them back. Below, I describe 3 different success stories from clients who needed our help maximizing the opportunities in front of them to achieve a financially free future. Could you be our next success story?
Step-By-Step Transitions: Mike & Beth (1)
Mike and Beth are in the “second” phase of their careers as they begin to enter retirement. They knew they didn’t want to transition immediately from working full-time to days devoid of structure, so they retired from their full-time positions to become self-employed consultants in their industry. In addition to the income they earn from their consulting business, they will soon need to structure their investments to create supplemental income.
As they enjoy their new, less demanding schedules, Mike and Beth know that in the next few years they’ll want to downsize their long-term family home into a more manageable row house or condo in the city. One of their daughters will continue to rely on them for financial support, so their retirement plans must include her needs as well.
To help them meet their needs and achieve their goals, we helped Mike and Beth figure out exactly how much they would need in assets to sustain them for the long term and protect their daughter financially after they’re gone. To help them reach this number, we executed investment and tax planning strategies that were specific to their income level and unique circumstances.
Early Retirement: Todd & Heather (2)
Todd and Heather are in their early 40s with 3 children still in elementary school. They are planning for an influx of stock options from a recent initial public offering (IPO) totaling about $15 million. They have a goal to be financially independent by age 50 while allocating their resources to pay for their children’s K-12 private schooling, save for college educations, and purchase a second home.
To help them achieve these goals, we helped Todd and Heather create an incentive stock option (ISO) tax strategy to save $1.2 million in tax over the next 3 years. We also created a diversified investment portfolio to minimize volatility for their long-term savings goals of paying for 3 college educations and a secure early retirement.
Untangling Complex Compensation: Jason & Margie (3)
Jason and Margie needed help creating a consistent cash flow strategy to meet their monthly expenses while saving for their long-term goals. A large percentage of Margie’s compensation is tied up in restricted stock units (RSUs), incentive stock options (ISOs), and bonuses, and Jason is a 1099 consultant. Their inconsistent income was creating problems for them from month to month, as they weren’t always able to plan ahead for months when cash flow would be smaller. Because Jason is self-employed, they had the added challenge of paying quarterly taxes.
To help them overcome these challenges, we created an investment strategy that rebalanced Jason’s equity compensation and minimized their tax burden in a diversified portfolio. We helped Jason set up a solo 401(k) and recommended they both fund backdoor Roth IRAs to save more for retirement. We also created a strategy to reduce their long-term mortgage debt between their primary home and their beach vacation condo. With these solutions, Jason and Margie could rest easier knowing they were taking advantage of current opportunities while planning for their future.
What’s Your Financial Challenge?
At KFA Private Wealth Group, we thrive on solving complex financial puzzles. If you have financial challenges or puzzles of your own, we would love to schedule a chat and discuss how we might be able to help you. To get in touch today, I invite you to email me at firstname.lastname@example.org or call 703-462-9482 to schedule an appointment.
John Fennig is co-founder and a private wealth advisor at KFA Private Wealth Group, a registered independent advisory firm founded on the premise of providing conflict-free financial and investment advice. With over 18 years of experience, John is passionate about providing his clients with a truly unique and customized approach tailored to their specific goals and aspirations. John graduated from the University of North Carolina at Chapel Hill with a Bachelor of Arts in Economics and is both a CERTIFIED FINANCIAL PLANNER™ (CFP®) practitioner and a Certified Public Accountant (CPA). John specializes in serving pre-retirees who are goal-oriented, high-income earners and uses his unique blend of knowledge and expertise to ensure they are not leaving any rock unturned in their financial lives. John is a proud father and husband and an active member of the community. To learn more about John, connect with him on LinkedIn.
(1) Names changed for privacy.
(2) Names changed for privacy.
(3) Names changed for privacy.