Case Studies: How We’ve Helped Our Clients (3 Stories)

By the Clear Insight Wealth Management Team

At Clear Insight Wealth Management, we love sharing real-life stories of success. Each of the following stories provides a snapshot of how our team has helped people develop a financial strategy for the future. While all names have been changed for confidentiality purposes, these true stories illustrate the power of sound financial planning and how our services benefit our clients.

Case Study 1: Retiring From a Military Career

Mark enjoyed a long military career, with a second act in the medical profession later in life. Mark is married with two grown children and was contemplating what life might look like after he retired fully at the age of 62. He wanted to spend more time with his family, although seeing his kids could require some travel.

For Mark, these goals required adjusting his current financial situation. His current medical career offered higher income, which allowed Mark to focus on building wealth to accomplish his retirement goals. It also meant developing a solid plan for how to manage wealth post-retirement and confirming that he and his wife were on the same page.

With our team’s skilled input, we helped Mark develop an action-oriented plan to retire by age 60 by building his net worth and making the most of his investments. We also helped him optimize his military benefits for healthcare coverage early in his retirement. 

Mark’s investment vehicles consisted of tax-free contributions to a Roth IRA and Roth 401(k). By planning ahead, Mark was able to keep his required minimum distributions (RMDs) at a manageable level to avoid paying too much in taxes. Finally, we helped Mark maximize the balances in his tax-free accounts in order to leave a legacy to his heirs without creating a tax burden in the process.

Case Study 2: Tax Strategies for an S-Corp

At the end of 2023, a client came looking for tax-advantaged strategies for their S corporation. The company had two shareholders, each married with spouses also earning incomes. But neither shareholder had saved as much as they would have liked for retirement, and they were also hoping to transition to a different job over the next five years.

Accomplishing these goals would necessitate reducing the taxable income that was flowing to the shareholders through the S-Corp, which would lower their tax liability. It also meant focusing on retirement savings while also taking a look at their immediate needs—such as their children’s education.

Thanks to guidance from Clear Insight Wealth Management, each shareholder saw a drop in their taxes by more than $60,000. Not only does this shelter business income from taxes, but it also provides a path to optimize strategies for additional retirement planning. 

Additionally, we helped these shareholders update their 401(k) plans to make a cash balance plan effective and implemented a Roth strategy to increase their retirement savings. As a result, the clients are now saving more than $300,000 in their cash balance plan; and for the first time, they see future employment as an option, not a requirement.

Case Study 3: The Power to Retire Early

Steve and Vanessa lived in D.C., where Steve’s job presented the option of retiring by age 52. Vanessa has the option to retire at age 57, but the couple hoped that their path of diligent savings would allow them both to retire once Steve turned 52, while still having the financial means to enjoy retirement to its fullest.

Our team helped them realize that because they’d saved so well, Steve and Vanessa could afford to retire early. And since Steve qualified to retire at age 52, they were both eligible to enjoy the Federal Health Benefit (FEHB), though Vanessa chose to delay her federal pension until age 60 so she could begin the benefit with no reduction.

However, the couple had large balances in pre-tax retirement accounts. This meant that when they started taking RMDs at age 75, they would face high taxes. So we assisted them in switching to Roth accounts. 

By planning for Roth conversions between the ages of 52 and 59, they can save even more. If the couple lives to age 87, these strategies have the potential to save them as much as $1.8 million dollars.

What’s Your Story?

We’d love to help these stories become your story! If you’d like to schedule a get-acquainted meeting, get in touch with Clear Insight Wealth Management today! Let’s start building toward your retirement goals together.

About Clear Insight Wealth Management

Clear Insight Wealth Management is a wealth management firm for military families, government employees, and small business owners looking for a clear path to living their best lives. The firm’s team of CERTIFIED FINANCIAL PLANNER™ professionals and a Certified Public Accountant is committed to helping clients navigate the complexities of today’s financial landscape by providing realistic advice, a distinct plan of action, and helping them progress toward their goals. With an emphasis on relationships and services including financial planning, investment management, and tax planning & preparation, Clear Insight Wealth management helps clients build—not just maintain—wealth in Spokane, Washington, Tyson’s Corner, Virginia, and across the United States.