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Planning for retirement involves careful analysis of savings, expenses, and investments to ensure your nest egg lasts throughout your golden years. Jeff’s story is a real-world example of how comprehensive financial planning and wealth management can transform uncertainty into clarity for those nearing retirement. Jeff is a Georgetown, Texas resident in his late 50s who sought guidance on securing his financial future. As a successful professional preparing for retirement, he had spent decades saving diligently. Yet, like many pre-retirees, Jeff felt overwhelmed by the complexity of turning his life’s savings into a reliable income stream. He wondered: Will my savings last 30+ years? Am I invested correctly for retirement? When should I take Social Security? How do I minimize taxes on my 401(k)? These are big questions that don’t have one-size-fits-all answers.
In this case study, we’ll walk through how a financial advisor at Axon Capital Management helped Jeff create a roadmap for retirement. You’ll see everything that goes into our financial planning services—from understanding personal goals to crafting investment and tax strategies—all tailored to Jeff’s unique situation. By the end, you’ll have a detailed look at how comprehensive financial planning aligns money with life goals, giving clients like Jeff confidence and peace of mind about the road ahead. (As with any case study on our site, Jeff’s story is a hypothetical illustration, not a real client.)
Jeff is a 59-year-old who has spent his career in the tech industry. He and his wife, Linda, moved to the area 10 years ago, drawn by the friendly community and Central Texas charm. Jeff commutes into Austin for work as a senior project manager at a software company, while Linda works part-time at a local school. They have two grown children who are independent, and a cozy home that they plan to stay in through retirement. Having no plans to relocate, Jeff and Linda are excited to enjoy their retirement in Georgetown.
Financial Profile: Over the years, Jeff and Linda have built a solid financial foundation. Their assets include Jeff’s 401(k) from his employer, several IRA accounts from previous jobs, a joint taxable brokerage account, and a healthy emergency fund in cash. Combined, their retirement investments total around $1.8 million. They’ve nearly paid off their Georgetown home (worth about $450,000), aside from a small remaining mortgage. Other assets include two paid-off cars and a modest boat they enjoy on the lake. Importantly, they have no high-interest debt – credit cards are paid in full monthly and they cleared their student loans long ago. On the income side, Jeff earns about $130,000 a year, and Linda brings in $25,000 from her part-time job. With retirement on the horizon, they anticipate living on a yearly budget of roughly $80,000 to $90,000 to cover expenses and leisure.
Goals and Dreams: Jeff’s primary goal is to retire at age 62 (in about three years) if possible, or by 65 at the latest, and for Linda to retire around the same time. They dream of a relaxed retirement lifestyle: spending more time with family (and future grandkids), volunteering in the local community, traveling the U.S. and abroad a couple of times a year, and perhaps taking up new hobbies. They are also thinking ahead about legacy goals – for example, helping with their future grandchildren’s college costs and leaving something behind for their children.
Despite having substantial savings, Jeff isn’t sure if these goals are truly within reach. “Do I have enough to retire comfortably for the rest of our lives?” is the nagging question that prompted him to seek professional advice. Jeff realized that retirement planning is about more than hitting an arbitrary savings number – it’s about structuring finances to support the life he envisions. He wanted an expert to take a holistic look at his situation and answer questions like: How much can we safely spend each year in retirement? How should our investments change as we retire? What about taxes, especially since most of our savings are in 401(k)/IRA accounts? Jeff was also wary of making a costly mistake (like claiming Social Security too early or investing too conservatively and running out of money). With so many interdependent decisions, Jeff wanted a financial plan that ties everything together into one cohesive strategy.
When Jeff first sat down with Axon Capital Management, we discussed the key challenges and concerns weighing on him. Several issues came to light:
These concerns are common among professionals nearing retirement, and they highlight why a holistic approach to financial planning is so important. Next, we’ll see how Axon Capital Management addressed each of these areas for Jeff, crafting an integrated plan to meet his needs.
Axon Capital Management takes a comprehensive, personalized approach to financial planning – exactly what Jeff needed. As a fiduciary, fee-only firm, our role was to act in Jeff’s best interest at every step, providing objective advice free of commissions or sales gimmicks. We started by truly getting to know Jeff and Linda: not just their numbers, but their values and vision for the future. This began with an in-depth Discovery process (Step 2 of our process) where we asked questions and gathered data on all aspects of their financial life. By the end of this phase, we had a clear picture of their current finances (assets, liabilities, income, expenses) and what they wanted their money to accomplish.
Armed with this understanding, we moved into Collaboration and Plan Design. Our team analyzed Jeff’s situation across multiple planning areas – retirement planning, investment strategy, tax planning, insurance needs, and estate considerations. We used powerful financial planning software to run projections (including Monte Carlo simulations for retirement outcomes) and tested different scenarios. Jeff was engaged throughout this collaborative planning – we discussed preliminary ideas and refined strategies based on his feedback and comfort level. The goal was to create a plan with Jeff, not just for him, so that it truly reflected his priorities.
After several planning sessions, we delivered Jeff’s comprehensive financial plan – a written roadmap covering recommendations in each area and an action checklist. Importantly, we didn’t just hand over a plan; we rolled up our sleeves to implement it alongside Jeff (Plan Delivery and Implementation). And our journey doesn’t end there – Axon provides ongoing support to adjust and monitor the plan over time. Below, we break down the key components of Jeff’s plan and how they addressed his concerns:
Analyzing Retirement Readiness: The first order of business was answering Jeff’s biggest question: will our savings sustain our lifestyle throughout retirement? We performed a detailed retirement analysis. This included projecting Jeff and Linda’s future expenses, modeling their income sources, and simulating their portfolio growth under various market conditions. We assumed their desired annual spending of about $85,000 (in today’s dollars) in retirement, which covers their living expenses, healthcare, travel and some cushion for unexpected costs. We also factored in inflation (assuming ~2-3% per year) since a dollar today won’t buy as much 20 years from now. Using Monte Carlo simulations – a tool that runs thousands of market return scenarios – we evaluated the probability of Jeff’s portfolio lasting through different lifespans (to age 95 for both of them, as a conservative horizon).
Results: The good news was that Jeff and Linda are on solid footing. In our base case assumptions, their probability of not running out of money was very high (over 90% likelihood of success) if they retired at 62 and spent at their target level. This was partly thanks to their substantial savings, but also to a prudent withdrawal strategy we developed. Notably, our analysis aligned with general research like a Morningstar study indicating that a ~4% initial withdrawal rate with a balanced portfolio has about a 90% chance of lasting 30 years . In Jeff’s plan, their initial withdrawal rate would be around 3.5-4%, which is within that safe range. This gave Jeff confidence that the oft-cited “4% rule” indeed suggests their money could last roughly 30 years or more under average conditions. Of course, we stress-tested less favorable scenarios (e.g. a market downturn early on, or higher inflation) to ensure the plan was resilient. In tougher scenarios, the plan still held up with slight adjustments (like trimming spending by a small percentage or using contingency reserves). We discussed these contingency options so Jeff knows how to adapt if needed.
Social Security Strategy: A key part of retirement income planning was deciding when Jeff and Linda should file for Social Security. After analyzing their other resources and longevity expectations, we recommended delaying Jeff’s Social Security benefit until age 70. Why? Because Jeff is in good health with longevity in his family, and delaying boosts his eventual benefit by about 8% per year past his full retirement age. By waiting from 67 to 70, Jeff’s monthly benefit will be roughly 24% higher for life. In dollar terms, if his FRA benefit is $3,000/month at 67, delaying to 70 increases it to around $3,720/month (nearly $45,000 per year). This larger benefit also provides a higher survivor benefit for Linda if Jeff passes away first – a form of longevity insurance for the family. For Linda, we decided she would claim at her full retirement age (67). Her own benefit is smaller, so there’s less advantage to delaying beyond 67 (especially since spousal/survivor benefits will be based on Jeff’s larger record). By claiming at 67, Linda avoids the early filing reduction and locks in the full benefit she’s entitled to. Between ages 62 and 67 (after retiring but before Social Security kicks in fully), they will draw from their portfolio for income, which our plan has accounted for. In fact, using their investments in the early years while allowing Jeff’s Social Security to grow is an optimal strategy in their case. Our planning software compared dozens of filing age combinations and this approach provided the best long-term outcome for them, balancing lifetime benefits and tax considerations.
Pension and Other Income: Jeff does not have a traditional pension, but Linda will receive a very small pension from her years as a teacher in a different state (about $5,000/year starting at 65). We incorporated that into the cash flow forecast. We also discussed part-time work in early retirement – Jeff flirted with the idea of consulting on the side for a couple years. The plan is flexible: if he does earn some income, that could either reduce withdrawals or allow for extra fun money. But it’s not required for their plan’s success. It’s a choice, not a necessity, which was reassuring for Jeff.
Healthcare Planning: Because Jeff plans to retire before 65, we included the cost of private health insurance for both him and Linda for the interim years. We estimated roughly $1,200 per month for a high-quality ACA health plan for the couple (net of any possible subsidies, though their assets and any part-time income might limit subsidy eligibility). This cost was built into their budget until age 65, after which we included Medicare premiums and out-of-pocket costs in the plan. We also discussed strategies like using an HSA (Health Savings Account) if possible before retirement: Jeff has an HSA through his employer which he’s been contributing to. We recommended maximizing that contribution in his final working years, letting it grow, and then using those funds to pay premiums and medical expenses in early retirement tax-free. By planning for healthcare costs explicitly, Jeff can retire at 62 with confidence that those expenses are covered and won’t derail his finances.
Longevity and Long-Term Care: To address the risk of outliving their money or facing huge expenses late in life, we built in conservative assumptions and safeguards. We projected their plan through age 95, but we also asked “what if you or Linda live to 100?” In such cases, required distributions from IRAs, Social Security COLAs, and tapping home equity (via downsizing or a reverse mortgage if absolutely needed in very old age) are potential sources of funds – but those are unlikely scenarios. We found their plan would still be solvent in most extreme longevity cases, albeit with little cushion by age 100. Regarding long-term care, we had an open discussion. Statistics show that a majority of seniors will need some form of long-term care (e.g., home care, assisted living, or nursing home) as they age. Jeff and Linda do not currently have long-term care insurance. We evaluated whether it’s worth buying a policy. Given their assets, they could potentially self-insure (pay out-of-pocket) for a few years of care if needed, but that could significantly eat into their kids’ inheritance if both needed extended care. On the other hand, LTC insurance premiums are high and rising, especially at age 59 and 58. Our recommendation was to at least look at LTC insurance options – perhaps a hybrid life/LTC policy – to see costs and coverage. This is a complex decision; some clients opt to self-insure, others buy insurance for peace of mind. For now, Jeff decided not to purchase a policy immediately, but to reevaluate in a few years. We did make sure to earmark a portion of their portfolio as a “long-term care reserve” in our projections (essentially a buffer in their later years). Additionally, by age 65 they will each get Medicare, and we plan for them to purchase a Medigap supplement or Medicare Advantage plan that covers many healthcare costs. While Medicare doesn’t cover custodial long-term care, having a good supplement will cover skilled nursing rehab and other medical costs, which helps. We also educated them on Texas Medicaid rules and the possibility of a Medicaid Asset Protection Trust down the line, but that’s likely unnecessary given their situation. The key is: we’ve acknowledged and planned for the possibility of expensive care needs so it doesn’t blindside their finances later.
In summary, the retirement income plan provides Jeff with a clear picture of how they will fund each year of retirement. The sequence is roughly: use savings (brokerage and IRA withdrawals) in the first ~5 years while delaying Social Security, then Social Security kicks in to cover a large portion of their needs from then on. Their withdrawal rate from investments stays in a safe zone, and we have contingencies for market volatility and longevity. Jeff now knows when he can retire (age 62 is feasible, if he chooses) and how he will draw income in a sustainable way. This knowledge alone lifted a huge weight off his shoulders. Instead of an uneasy guess, he has a detailed retirement paycheck plan backed by analysis.
With a retirement roadmap in place, we turned to Jeff’s investment portfolio – the engine that will generate much of his retirement income. Investment management is a core part of Axon’s services, and Jeff decided to partner with us to manage his portfolio on an ongoing basis. Here’s how we optimized and restructured his investments to match his needs:
Risk Assessment: First, we revisited Jeff and Linda’s risk tolerance and risk capacity. Risk tolerance is their comfort with market ups and downs, and risk capacity is how much risk they can afford to take given their goals and timeline. Being close to retirement, they can’t afford to gamble their nest egg on speculative bets. However, with potentially 30+ years ahead, they also need growth to outpace inflation. We determined that they are moderate investors – not overly aggressive, but not ultra-conservative either. Jeff wants to protect what they have, yet he understands some stock exposure is necessary for long-term growth. We also discussed sequence of returns risk: to mitigate the danger of a bad market early in retirement (which can hurt more when you’re withdrawing funds), a slightly more conservative allocation is prudent at the retirement transition.
Target Asset Allocation: We landed on an asset allocation of roughly 60% stocks / 40% bonds for their combined portfolios as they enter retirement. This is a classic balanced allocation, calibrated to provide growth but with significant stability from bonds. In context, Jeff had been around 90% in stocks during his younger years. Shifting to 60/40 reduces volatility.
Diversification: Within those broad stock/bond targets, we diversified across asset classes and geographies. Their stock allocation is spread across U.S. large-cap stocks, U.S. mid/small-cap, and international equities (both developed and emerging markets). This ensures they’re not overly dependent on any one market. For example, if U.S. stocks underperform in a decade, international stocks might carry some weight, and vice versa. The bond allocation includes high-quality core bonds (U.S. investment-grade bonds, Treasuries) to provide stability, as well as a small portion in inflation-protected bonds (TIPS) as a hedge against inflation. We also kept about 5% of the portfolio in cash or very short-term bonds as a liquidity buffer for near-term withdrawals – this is effectively their “cash bucket” for the next 1-2 years of spending. Having a cash reserve means if the market drops, Jeff can draw from cash instead of selling stocks at a loss, which is a key strategy to combat sequence risk. All these moves make the portfolio more resilient to market swings and help protect their savings from being too concentrated or exposed to any single risk.
Consolidating and Streamlining: Jeff had multiple accounts: a 401(k) with his current employer, two IRAs from previous jobs, Linda’s 403(b) from a school job, and a joint taxable brokerage. Keeping track of all this was cumbersome for him. We assisted in consolidating accounts where possible. After Jeff retires, we plan to roll over his 401(k) into an IRA managed by Axon. The same with Linda’s 403(b). This will simplify their holdings and give us more flexibility in investment choices (401k funds can be limited). We combined the old IRAs into one. The taxable brokerage account remains separate for now (since it’s a different registration), but we streamlined the investments in it to match the overall allocation. Simplifying to a cohesive portfolio reduces fees and makes it much easier to manage and rebalance.
Investment Selection and Cost: Axon Capital Management uses a low-cost, evidence-based investing philosophy. We shifted Jeff’s holdings out of some higher-cost mutual funds into low-cost index funds and ETFs that cover the target asset classes. This immediately saved them on internal expense ratios. For example, in his 401k he had some actively managed funds with expense ratios around 0.7%; we moved to index funds at 0.05%-0.1% where available, which will save thousands over time. We also eliminated any redundant or overlapping funds. The new portfolio is more tax-efficient as well: in the taxable account, we chose tax-managed equity funds and municipal bonds (for any fixed income needed there) to minimize taxable dividends and interest. Within IRAs, we can freely use income-generating bonds and rebalance without tax consequences. We effectively placed assets in the optimal accounts (“asset location” strategy) – e.g., keeping most bonds in IRAs for tax shelter, and stock index funds in taxable where they get favorable capital gains treatment.
Ongoing Management – Rebalancing and Discipline: We set up a disciplined rebalancing plan: at least annually, or more often if markets swing significantly, we will rebalance the portfolio back to the 60/40 target or adjust the target as needed. This means selling a bit of what’s gone up (say stocks after a rally) and buying what’s gone down (bonds or vice versa) – a systematic way to “buy low, sell high.” Rebalancing controls risk and takes the emotional decision-making out of the equation. Jeff no longer has to wonder if he should sell during a crash or chase a hot stock – we handle those decisions per an agreed strategy. We also use any withdrawals as an opportunity to rebalance (for example, if they need to withdraw cash for living expenses, we’ll withdraw from whichever asset class is overweight at that time).
Crucially, Axon’s investment management means Jeff doesn’t have to go it alone in turbulent markets. In a market downturn, we’ll be there to implement tax-loss harvesting (selling investments at a loss to offset taxes, while reinvesting in similar assets) and to reassure and adjust the plan if needed. In exuberant times, we’ll make sure the portfolio doesn’t become over-risky. Jeff essentially outsourced the day-to-day and tactical aspects of portfolio management to us, giving him more time and less stress. He liked knowing that an experienced fiduciary advisor is watching over his investments and can act swiftly and rationally when needed.
With the new investment strategy in place, Jeff’s portfolio is aligned with his retirement goals: it’s positioned to provide the income he needs, manage risks appropriately, and still capture growth to sustain them for decades. And because Axon specializes in both financial planning and investment management, the investment strategy is fully integrated with the rest of his plan (tax strategy, withdrawal strategy, etc.). That integration is critical – for example, our choice of investments took into account their tax implications in coordination with Jeff’s tax plan, which we discuss next.
Tax planning can make a tremendous difference in how long a retiree’s money lasts. For Jeff, we developed proactive tax strategies to minimize taxes both now and in the future, keeping more of his hard-earned money working for him. Here are the key elements of Jeff’s tax plan:
Leveraging Texas Tax Advantages: Being a Texas resident is a plus for Jeff’s retirement finances. Texas has no state income tax, which means Jeff’s Social Security benefits, 401(k)/IRA withdrawals, and pension income will all be tax-free at the state level. In contrast, many other states tax some or all of those income sources. We reminded Jeff that this effectively saves him potentially thousands of dollars a year compared to a similar retiree in a high-tax state. This “tax friendliness” is one reason Texas (and the Georgetown/Cedar Park/Round Rock area in particular) is popular for retirees. However, Central Texas does have relatively high property taxes and sales taxes. We factored in property taxes on his home (around $8,000/year currently, likely to grow) into the budget and discussed how once he turns 65, he can file for the Texas over-65 homestead exemption which will reduce his property tax bill. In fact, recent legislation in Texas has increased the homestead exemption for seniors, providing some relief. We want to ensure Jeff claims all such exemptions and possibly freezes school district taxes at 65 if eligible. This local knowledge is part of the value we add as a Central Texas firm – we understand the nuances of Texas tax laws and how they impact retirees’ cash flow.
Roth Conversions – Strategy to Reduce Future RMDs: One of the most impactful strategies for Jeff is a series of Roth IRA conversions early in his retirement. The idea is to take advantage of the relatively low-income years after Jeff stops working (age 62-70, before RMDs and before Social Security fully kicks in) to convert a portion of his traditional IRA money to Roth IRA each year. By doing so, Jeff will pay taxes on the converted amounts now, but those funds will then grow tax-free in the Roth for the rest of his life (and even tax-free to his heirs for 10 years after inheriting, under current law). This strategy can dramatically lower his required minimum distributions later on and thereby reduce his taxable income in his 70s and 80s. We analyzed various conversion scenarios and settled on a plan to convert roughly $50,000 per year from his IRA to Roth during ages 62 through 70. This size conversion keeps him within (or just at the top of) the 22% federal tax bracket, which is reasonable. We ensure not to push him into higher brackets or trigger Medicare premium surcharges unnecessarily. By age 73, this could shift approximately $400,000 of his pretax assets into Roths. The impact: his RMDs at 73 will be based on a much smaller traditional IRA balance, resulting in lower mandatory withdrawals (and taxes) each year. This translates to potentially thousands of dollars in tax savings annually in his 70s and beyond, and it also gives him more flexibility to manage his taxable income each year.
Moreover, Roth conversions can protect against future tax increases. Currently tax rates are moderate, but there’s legislative risk that tax brackets could rise later. By paying taxes now and going Roth, Jeff is “locking in” today’s tax rates on that portion of his wealth. We did caution Jeff to be mindful of other side-effects in the conversion years: for instance, converting too much in one year could make more of their Social Security taxable or bump them into higher Medicare premiums two years later (IRMAA rules). Our plan coordinates the timing: we’ll do bigger conversions in the first few years (62-64) before Social Security starts, then smaller conversions 65-70 once Social Security is in the mix (since some of those benefits can become taxable as income rises). This careful coordination ensures we don’t inadvertently cause, say, 85% of Social Security to be taxed when it could have been 0% or 50% taxed at lower income. The principle is to “fill up” a lower tax bracket with conversions each year without spilling into a punitive range. Jeff was pleased with this strategy, as it essentially pays a bit of tax now to avoid possibly larger taxes later – a trade-off that works in his situation. As a bonus, Roth IRAs have no RMDs for the original owner, so he can let that money grow untouched if he doesn’t need it, and Roth assets won’t increase his Medicare or Social Security taxation down the line.
Tax-Efficient Withdrawal Order: We provided Jeff with a tax-smart withdrawal sequence for funding his retirement needs. The general plan is: in the early years (62-70), we will draw primarily from the taxable brokerage account and any remaining after-tax savings first. Those withdrawals are taxed at capital gains rates (which for them may be 0% or 15% federal, since long-term capital gains have lower rates than ordinary income). This allows his IRAs to keep growing tax-deferred a bit longer and gives room for the Roth conversions. After 70, when RMDs start, we’ll of course take the RMDs (taxable) from the traditional IRA each year, but any additional needs beyond RMDs can be taken from the Roth tax-free or from the brokerage. Essentially, we’ll try to keep their taxable income in a moderate bracket by balancing between taxable IRA withdrawals and tax-free Roth withdrawals. Having multiple “buckets” (taxable, tax-deferred, and tax-free) is very useful for tax flexibility. For example, if one year they need an extra $20k for a big trip or a new car, we might pull that from the Roth IRA to avoid bumping up taxable income. We also considered tax-loss harvesting opportunities in the brokerage account (selling investments at a loss to offset gains or income) during market downturns, which Axon will manage as part of investment management.
Managing Capital Gains and Dividends: We restructured the taxable account to be as tax-efficient as possible: using index funds that rarely distribute capital gains, and favoring qualified dividends (taxed at lower rates). Each year, we’ll review their tax situation in the 4th quarter to decide if realizing some gains makes sense (e.g., if they’re in the 15% capital gains bracket, perhaps we harvest gains up to the top of that bracket at 0% tax). Also, if any years between 62-70 their income is very low (which might happen if we’re mainly converting Roth up to a limit and not selling much else), we might take advantage by doing additional conversions or Roth contributions (though Jeff won’t have earned income to contribute new, only conversions). The key is active annual tax management – something Axon can provide as an ongoing service, in collaboration with their CPA at tax time.
Minimizing Tax on Social Security: With our plan, by delaying Social Security and doing conversions early, we might manage to have some years where Jeff and Linda’s Social Security is taxed at a lower rate. The IRS formula taxes up to 85% of benefits if income is high; by converting before Social Security and then carefully managing IRA withdrawals after, we may keep their combined income in retirement at a level that not all of their Social Security gets taxed. Every bit of tax savings helps extend their portfolio.
Estate Tax and Legacy Planning: On the estate front, federal estate taxes aren’t a concern for Jeff’s asset level (the current federal estate tax exemption is very high, over $12 million per person as of 2025). Texas has no state estate or inheritance tax either. However, we did look at the beneficiary setup for their accounts to ensure smooth transfer. We confirmed that their IRAs list each other as primary beneficiary and their two children as contingent beneficiaries. We explained the SECURE Act 10-year rule for inherited IRAs (non-spouse beneficiaries must withdraw the account within 10 years). One more benefit of the Roth conversions: any Roth IRA left to their kids can also be withdrawn within 10 years, but crucially tax-free, which is much better for the kids than inheriting a large traditional IRA fully taxable. So our Roth strategy is also doubling as an estate planning boon.
Additionally, we suggested some charitable giving strategies: Jeff and Linda give to their church and a local charity each year. Instead of cash gifts, once Jeff is over 70½, they can use Qualified Charitable Distributions (QCDs) from their IRA – directing some of the RMD directly to charity, which counts toward the RMD but isn’t taxable income to them. This is a great way to reduce taxes while supporting causes they care about. They loved this idea and plan to use QCDs for their charitable contributions in the future. We also discussed possibly establishing a Donor-Advised Fund (DAF) before retirement, contributing some appreciated securities now (to get a tax deduction at high current income) and then using the fund to give to charities over time. They may do a DAF in Jeff’s last high-earning year to maximize deductions.
In summary, Jeff’s tax plan is about paying taxes smartly, not needlessly. By shifting some taxes to earlier years (when rates are lower) and reducing taxes in later years, we stretch their assets further. The plan takes advantage of Texas’ friendly retirement tax laws, uses techniques like Roth conversions, and ensures no stone is left unturned (from property tax exemptions to charitable tax breaks). Taxes can be one of a retiree’s biggest expenses, so this proactive planning will save Jeff and Linda a significant sum over their lifetime – money that can now fund their lifestyle and legacy instead of going to the IRS.
A truly comprehensive financial plan must also account for insurance and estate planning, which serve to protect the client’s finances and family. For Jeff, we conducted a thorough review of his insurance coverages and estate documents, making several recommendations:
Life Insurance: Jeff carried a term life insurance policy from when his kids were younger, which is due to expire in a couple of years. Given that they have grown children and sufficient assets, the original purpose of that policy (income replacement for family in case he died young) is no longer critical. We determined that once he retires, Jeff and Linda will be essentially self-insured by their assets – if one of them passes, the survivor has the retirement savings and Social Security survivor benefits to sustain them. Therefore, we recommended no new life insurance on Jeff. Letting the old term policy lapse at expiration is reasonable, saving premium dollars. However, we did evaluate Linda’s situation: since her income is smaller and the portfolio supports both lives, no life insurance is needed on her either from a purely financial standpoint. We did discuss final expense planning and perhaps a small policy if they wished to cover funeral costs specifically, but they can also earmark savings for that. One exception: if Jeff decides to do consulting work, we might get a small policy then, but likely not necessary. The bottom line – their life insurance need has greatly diminished, which is common as folks near retirement with adequate assets.
Disability Insurance: At 59, and with retirement planned at 62, long-term disability insurance isn’t practical or needed. Jeff is close to the typical retirement age; disability policies usually only pay until 65. He currently has coverage through work, which he’ll keep until he retires. We advised him not to spend on any new private disability policy given the short horizon and high cost at his age.
Umbrella Liability Insurance: One area we strengthened was liability protection. With their asset level (almost $2M in investments plus home equity), a lawsuit could pose a risk (for instance, a car accident where they’re found at fault). Jeff already has auto and homeowners insurance, but those have liability limits (often $300k or $500k). We recommended an umbrella insurance policy of $1–2 million, which is relatively inexpensive (~$250-300/year) and provides an extra layer of liability coverage on top of home/auto. This protects their assets from claims that exceed primary insurance limits. Jeff agreed and has since put an umbrella policy in place.
Long-Term Care (LTC) Revisited: As mentioned in the retirement section, we deliberated on LTC insurance. We cited general guidance that considering a long-term care policy in your late 50s or early 60s is wise, but it’s not a one-size-fits-all answer. Given the high premiums and the fact they can handle moderate LTC costs, Jeff chose to hold off on purchasing a policy now. However, as part of ongoing service, we will revisit this periodically. One strategy could be to allocate a portion of their investment portfolio in a very safe manner as a “pseudo-insurance fund.” Another strategy is examining hybrid life insurance with LTC riders (which if not used for care, can still pay a death benefit). We provided referrals to an insurance specialist for quotes, just so Jeff and Linda know their options. They took that info under advisement. Importantly, we told them to stay healthy – prevention and healthy living is of course the best defense! They chuckled at that, but they are indeed active and taking care of themselves, which will hopefully delay or reduce long-term care needs.
Health Insurance & Medicare: We already covered pre-65 health insurance in the retirement section. We also gave guidance on Medicare choices: about 6 months before 65, we’ll help them evaluate Medicare Part A/B and whether to go with Traditional Medicare plus a Medigap Plan (and Part D for drugs) versus a Medicare Advantage plan. We’ll consider their doctors and travel plans (they plan to travel, which often favors Traditional Medicare + Medigap for nationwide coverage). We put this on the calendar for a future review session at age 64. We advised them to get Part D drug coverage even if they don’t use many prescriptions, to avoid late enrollment penalties. These are small but critical details that financial planners ensure clients don’t overlook.
Estate Planning Documents: Jeff and Linda had wills drawn up about 15 years ago when their kids were minors. Those wills named guardians, etc., which is outdated now. We strongly urged them to update their estate documents. They engaged an estate planning attorney in Georgetown to create a new will, powers of attorney, and medical directives. The updated will lays out the distribution of their estate to their two children equally, with a contingency for any grandchildren’s shares if a child predeceases them. They considered setting up a revocable living trust, which can streamline the transfer of assets without probate. In Texas, probate isn’t terribly onerous, but a trust can be helpful since they have property and accounts. The attorney advised that a trust could be useful if they acquire property in another state (not currently planned, but just in case) and to manage privacy. Jeff decided to implement a revocable trust and retitle their brokerage account and home into the trust’s name. We made sure beneficiary designations on retirement accounts were aligned with the estate plan (typically, IRAs still name the spouse then kids directly, bypassing the trust, unless a trust is specifically needed for minor or spendthrift concerns, which in this case it wasn’t).
We also ensured they have a durable financial power of attorney for each other – so one can act on financial matters if the other is incapacitated – and medical power of attorney and living will (advance directive) so their healthcare wishes are known. These documents provide peace of mind that if something unexpected happens, their family isn’t left in limbo. Jeff admitted this was something he’d put off, and he felt relieved after completing it. Axon’s role was partly to project manage this process – reminding them, providing referrals, and coordinating with their attorney – so that it actually gets done.
Legacy and Gifting: Jeff and Linda’s desire to help with grandkids’ college in the future led us to discuss 529 college savings plans. If/when their kids have children, contributing to a 529 plan for the grandkids could be a wonderful way to build an education legacy. We penciled this in as a “later” item, since no grandkids yet. In the meantime, if they want to gift money to their adult children (for say a house down payment), we advised staying within the annual gift tax exclusion to avoid any need for gift tax filings. But their children are financially independent, so gifts would be purely optional. Our plan showed that after 25-30 years, if markets perform moderately, Jeff and Linda could still have a sizable portfolio leftover, so leaving an inheritance is on track. They expressed that enjoying their money while they can is also important – which we wholeheartedly endorse – and we ensured their spending plan allows for fun and making memories now, not just leaving money later.
In sum, we fortified Jeff’s financial foundation with the right protections and legal frameworks. Now he has appropriate insurance coverage to guard against unforeseeable liabilities or health events, and his estate plan is updated to carry out his wishes seamlessly. It’s worth noting that Axon, as a fiduciary advisor, doesn’t sell insurance for commission – any recommendations here (like umbrella or considering LTC) are purely in Jeff’s interest. We coordinated with independent insurance agents and attorneys, ensuring Jeff got the solutions he needed without conflicts of interest.
Designing a comprehensive plan is only half the battle – implementing and monitoring it is where the real value of a financial advisor often shines. An Axon financial advisor assisted Jeff every step of the way in turning recommendations into concrete actions, and we continue to provide guidance as life unfolds.
Step-by-Step Implementation: After delivering Jeff’s written financial plan, we created an action checklist with prioritization. High-priority items included: rolling over his old retirement accounts, updating the investment portfolio, beginning Roth conversions, setting up estate documents, and adjusting insurance coverages. We scheduled regular check-in meetings (bi-weekly initially) to tackle these. For example, in the first month, we initiated the 401(k) and 403(b) rollovers: paperwork was filed to transfer those accounts into the IRAs we manage. We coordinated directly with the custodian to ensure a smooth trustee-to-trustee transfer, avoiding any tax withholding mishaps. Next, we executed trades in his accounts to align with the new target allocation – selling off some over-weighted stock funds and buying bond funds, etc., according to our investment plan (taking care to do this in a tax-efficient manner in the brokerage account).
We also set up a Roth conversion for January of the following year (to spread out conversions per calendar year). We discussed with Jeff’s CPA to estimate taxes on the conversion and decided to adjust his quarterly estimated tax payments to cover the conversion tax so there wouldn’t be a surprise bill. Alternatively, one can withhold taxes from the conversion itself, but we aimed to pay the tax from outside funds (from the brokerage account) to allow the full converted amount to grow in the Roth. Jeff agreed to that approach.
Meanwhile, Jeff and Linda met with the estate attorney (we joined that meeting as well to provide any needed financial input) and got their documents updated within two months. We helped them retitle accounts into their trust where needed by liaising with the brokerage. We also walked them through updating beneficiary forms – something people often forget. This coordination between financial planner, CPA, and attorney forms a team supporting Jeff, which he found immensely helpful.
Behavioral Coaching and Adjustments: During implementation, questions and emotions naturally arose. For instance, when we were reallocating the portfolio, one of Jeff’s stock funds had dropped recently and he hesitated, saying “Should we wait for it to bounce back before selling?” This is a common sentiment – reluctance to sell at a loss. We provided coaching, explaining that the reallocation is designed for the long-term benefit, and that holding an overweight position just hoping it rebounds could expose him to more risk. Instead, we did a measured reallocation (not dumping everything at once, but over a couple of weeks to average prices) which gave him comfort. Similarly, when it came time to do the first Roth conversion, writing a check for the taxes wasn’t exactly pleasant, but we revisited the projections showing the long-term advantage. Having an advisor to reinforce the plan’s rationale helped Jeff stick to it and not second-guess each move.
Regular Reviews and Ongoing Service: Now that the initial plan is in motion, Axon provides ongoing monitoring and adjustments. We have quarterly check-ins with Jeff and Linda. In these meetings, we review their investment performance, progress toward goals, and any life changes. For example, after the first year of retirement, we’ll analyze actual spending vs. budget to see if they’re on track or if we need to tweak the withdrawal amount. We also do an annual tax planning session every fall to plan Roth conversions and tax withholding for the next year (this will continue up to age 70 and maybe beyond).
If the market experiences a major downturn or surge, we might meet more frequently to discuss implications. Through Axon’s ongoing service, Jeff receives proactive advice. If there’s a new tax law or something like Social Security changes, we reach out to him about how it might affect his plan and what adjustments to consider. For instance, if Congress were to change RMD ages or if tax rates change in 2026 when current tax cuts sunset, we will revisit the Roth conversion strategy amounts.
Another area of ongoing support is as Jeff and Linda age, their needs may shift. We will help them with decisions like when to start drawing from the Roth IRAs (maybe to fund a big purchase or healthcare), when to simplify their portfolio further (perhaps at some point moving to an even more conservative allocation, or consolidating accounts again if one of them passes). Basically, we will update the plan as life unfolds – whether it’s adapting to external factors (markets, economy, tax laws) or personal events (selling the house in 20 years to downsize, etc.). Jeff knows he has a partner for the long haul, which gives him a lot of confidence. Financial planning is indeed an ongoing process, not a one-time event, and we emphasize that with all clients.
Client Education and Peace of Mind: Throughout our relationship, we also serve as an educator for Jeff. We send out newsletters and hold client webinars on relevant topics (for example, year-end tax tips, or market outlooks). Jeff appreciates staying informed without having to do the heavy lifting himself. If he reads something concerning (like an alarming economic headline or a new investment fad), he often emails or calls us to discuss. We pride ourselves on being accessible – Jeff can call us anytime with questions big or small, whether it’s “Does it matter if I take out a car loan or pay cash for a new car?” or “We’re thinking of taking a $15k cruise, is that okay with our plan?” We encourage these questions because it means he’s making decisions with guidance rather than in a vacuum.
Lastly, since we’re local, we’ve even met Jeff and Linda for coffee near the Georgetown Square to catch up on life (and sneak in a bit of financial talk). This personal touch underscores our commitment – Axon is rooted in Central Texas, understanding local nuances while also having a broad expertise in all areas of financial planning. Our fiduciary oath and fee-only model assure Jeff that every recommendation is solely for his benefit – something he said he truly values, after hearing too many horror stories of conflicted financial advice.
Fast forward to today: Jeff is now 62 and has just entered retirement as planned. The comprehensive planning and diligent implementation have paid off in multiple ways:
In Jeff’s case, the comprehensive financial planning and investment management approach addressed every facet of his financial life: retirement, investments, taxes, insurance, estate, and beyond. He transitioned from feeling overwhelmed and uncertain to feeling organized and in control. The local touch – working with a firm that understands the Austin-area economic landscape – added comfort, as Jeff felt we truly understood his environment (like knowing about local real estate trends and Texas tax perks, etc.). And because Axon Capital Management operates as a fiduciary and fee-only advisor, Jeff received objective, client-focused advice at every step. There were no sales of annuities or commissioned products in this process – only strategies and solutions aligned with Jeff’s best interests, which is exactly what he was looking for.
Jeff’s journey illustrates how a holistic financial plan can turn a patchwork of accounts and worries into a clear, actionable strategy for the future. By addressing investments, retirement income, taxes, and risk protection together, we ensured all parts of his financial life work in harmony. This comprehensive approach is what Axon Capital Management specializes in – a mix of financial planning and investment management – to help clients achieve their goals with clarity and confidence.
If you’re a professional or family in the Austin or Georgetown area (or anywhere in Texas) facing similar questions about your financial future, know that you don’t have to figure it all out alone. Whether you’re wondering “Can I afford to retire?”, “How should I invest right now?”, or “Are we missing any tax-saving opportunities?”, working with a fiduciary financial advisor can provide answers and peace of mind. As an independent, fee-only firm, Axon Capital Management is dedicated to helping clients like you make smarter financial decisions through personalized planning, prudent investment management, and tax-efficient strategies.
Your financial story might have its own unique twists – stock options from a tech job, a family business, college tuition for kids, or selling a home – but the process of thoughtful planning and expert guidance can illuminate the path forward. Jeff’s case study is one example of what’s possible when all the pieces of your financial puzzle come together. The outcome isn’t just a document or a number in an account; it’s the confidence and freedom to live life on your terms, knowing your finances are in good hands.
Article written by Brady Lochte, Financial Advisor at Axon Capital Management
Ready to take control of your financial future? Consider reaching out to schedule a conversation with Axon Capital Management. We’re here in Georgetown, TX and serve clients throughout Austin, Cedar Park, Round Rock, and beyond - both in-person and virtually. Let’s talk about your goals, your concerns, and how we can help you craft a plan for the life you envision.
Remember, financial planning isn’t just about numbers; it’s about empowering you to live the life you want. With guidance from a local financial advisor, you too can create a roadmap to financial freedom and make the most of what you have, today and in the years ahead.
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Axon Capital Management is a registered investment advisory firm. This case study is a hypothetical illustration of our planning process and the potential benefits of comprehensive financial planning. It does not represent an actual client and is not a guarantee of future results for any client or reader. The content in this article is not financial, legal, or tax advice. Individual situations will vary. For more information or to discuss your own financial goals, feel free to contact us by filling out the form below.
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