Case Studies

They anticipate that their consulting income will cover about half of their household expenses, and want to know if it would be viable to cover the other half with their investment assets. They also need to know what to do about health insurance for their family and how much they will be able to help with their kids’ college education in the future.

Chris and Jennifer wanted to work with a consultative financial planner, not a salesperson or asset manager. They wanted to be heard, not sold to. After exploring and documenting all of their goals, the next step was to devise a plan for investment account withdrawals that was safe and sustainable over their five decade time horizon. Finally, a solid insurance plan was crafted to address not only health, dental, and vision – but also disability and life insurance. With all of the above in place, it was then possible to consider how much they could contribute to their childrens’ college funds.

By applying the SHIFT Process, Chris and Jennifer were able to downshift with confidence and clarity.

• They felt secure in withdrawing from their investments over a very long time horizon.
• They took comfort in knowing that they had a plan for health care and other insurance.
• They were able to work fewer hours and spend more time with family.

Working fewer hours afforded Chris and Jennifer more quality time with the kids and more leisure time overall. Their new lifestyle was less stressful. Dropping off and picking up the kids at school became a highlight of their days rather than a hurried task before rushing to and from the office. They weren’t exhausted at the end of the day and were more engaged during family time.

Matt and Sarah have worked hard over the years to build a strong financial foundation. They’ve saved quite a bit toward retirement and have only 7 years left on their 15 year mortgage. They believe their new incomes will meet expenses with a bit extra to contribute to their kids’ college savings, but wonder whether they will have enough for retirement.

It was important to help make Matt and Sarah’s downshift planning easy, enjoyable, and stress free. The first step was to take a closer look at their projected income and expenses to determine how safe this change would be. One thing that helped was refinancing their mortgage balance to a new 30 year loan. The next step was to project their existing retirement savings without further contributions and compare that to their anticipated expenses later on in life. Finally, a plan of action was implemented to make monthly contributions to each child’s 529 account for future college expenses.

Creating solutions through the SHIFT Process helped Matt and Sarah in many ways:

• They took comfort in knowing that their new lower income would be “enough.”
• They felt secure with letting their retirement savings continue to grow without further contributions.
• They were pleased to be able to help their children with future college expenses along the way.

Matt and Sarah now enjoy the peace of mind that comes with a clear financial plan. They have more time and energy to devote to family and feel invigorated because their new careers are focused on what is most important to them.

The extra spending would significantly cut into Rick and Maria’s retirement and college savings contributions. They want to know if they can afford the extra spending and still retire in six years. They also want to consider how their children’s college funding will be affected.

Rick and Maria needed a trusted professional with the right skills and knowledge to help weigh their options and chart a course. After running the numbers, it was determined that spending so much money on travel would not allow them to retire in six years. Clarifying their values and priorities through the SHIFT Process led them to decide to delay retirement in order to share these experiences with their kids. Additionally, Rick and Maria took the opportunity to involve the kids in planning and budgeting the vacations, which soon became a regular family activity.

Financial planning through the SHIFT Process empowered Rick and Maria to:

• Create meaningful, memorable experiences with their kids;
• Judiciously balance spending today with saving for tomorrow; and
• Transition to retirement with confidence and peace of mind.

Involving the kids in vacation planning strengthened family ties and fostered a sense of wonder and curiosity. Although Rick and Maria could have retired sooner, the priceless experiences they enjoyed as a family will never be forgotten.