SituationJim: 38 year old Medical Device Sales Executive
Anne: 39 year old Doctor
Children: 3 (2, 4, & 6)
Annual Income: $375,000
Investable Assets (Joint Account & IRAs): $400,000
Annual Savings: $7,500 each to their 401k(s)
to meet their employer match
College Savings: $0
Wills & Powers of Attorney: None
Life Insurance: $100,000 (each-group term)
Disability Insurance:Through their employer
iThrive Life Planning Process™
Vision: Retire – Jim (65) Anne (66); Fund college for all
3 children; buy a vacation home; protect their family
should something happen to them.
Awareness: Our analysis revealed they were below the
confidence zone with a 51% probability of achieving their
Plan: In a live planning session we made adjustments to
increase their confidence score to 83%.
Implement: Thrive Implemented their plan every step
of the way.
Monitor: Thrive continues to annually confirm their Vision,
test their plan, and hold them accountable so they stay on
Savings: Created a sustainable budget so they could
maximize their 401k(s) (saving $35k/year), saved $15k/
year to their Joint Account, established three 529 Plans
and started contributing $10k/year. Implemented a back
door Roth IRA strategy in which they would be able to
contribute $5.5k/year (each) insuring they would never
have to pay taxes on the growth or distribution. Total savings
Investments: Created an investment strategy consistent
with their plan and implemented across all of their
accounts. Aggregated their account reporting so they can
maintain a cohesive household investment strategy and
track performance in one place.
Insurance: Increased their coverage by purchasing
$1.5M (each) of Term Insurance; the term period covers
their youngest through college. Found the supplemental
coverage offered through their employer cost $175 more
each year than what they could obtain outside of their
companies. Obtained a supplemental disability policy for
Estate Planning: Mapped out a plan and made a referral
to an attorney. They now have guardians listed in
their Wills, ensuring the state would not decide who
would care for their children. Also included asset protection
elements in their document so their children would
inherit money at the right time and it would be protected
from taxes, divorce, creditors, and themselves.
Taxes: Introduced a qualified accountant and saved over
$8k/year in taxes by maxing out qualified plans and contributing
towards college savings plans.
The above is a hypothetical case study and not based on actual individual client results.The results achieved in our simulations do not guarantee future investment results. It is possible that the markets will perform better or worse than shown in the case study; that the actual results of an investor who invests in the manner these case studies suggest will be better or worse than the projections; and that an investor may lose money by investing in the manner the case studies suggest. The case studies assume the reinvestment of dividends and do not include transaction costs for purchases and sales of equities and bonds or mutual funds and ETFs. We assume no deduction for advisory fees, and that assets are allocated in the manner the projections suggest until the hypothetical client reaches age 95. The final results also address such factors such as annual spending, annual savings, timing and cost of goals. Although the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. While the case study results reflect rigorous application of the investment strategy selected, hypothetical results have certain limitations and should not be considered indicative of future results or results for any individual investor. In particular, they do not reflect actual trading in an account, so there is no guarantee that an actual account would have achieved these results shown.