Case Study: Financial Planning Client

Case Study: Financial Planning Client

| June 03, 2021

Case Study: Financial Planning Client

Jim Pilat, AIF® of Peak Wealth Management shares a case study he created on a financial planning client who is preparing for retirement. In this video, you'll learn more about what you can do to retire with confidence.

Watch our video below or read the case study below to learn more.

Mr. and Mrs. Schoolcraft - Each 56 years old and want to retire when they are 65

Each making 100,000/yr.  $200,000 household income

Social Security will be 27,250 each at age 65 when they retire.  54,500 total.  No Pensions

Spending 100,000/yr currently and in Retirement

Current Assets – Assuming 5% rate of return

Mr’s 401k = 200,000

Mrs’s 401k = 200,000

Mr’s Roth IRA = 25,000

Mrs’s Roth IRA = 25,000

Jt Brokerage = 200,000

House worth 400,000 and they owe 200,000.

Total Net Worth = $850,000 


Mr. is adding 10% to his 401k and gets a 3% match

Mrs. is adding 10% to her 401k and gets a 3% match

Total savings of 26,000/yr

Are they on track?

How much money do they need to retire?

Can they retire earlier?

If they keep doing what they are doing, this is how the future looks.

The portfolio value increases significantly up until retirement.

Since they do not want to retire to a lesser lifestyle, on top of SS they are forced to pull out 75k/yr which is a withdrawal rate of 5.75%.  It’s too high and they run out of money at age 83.

What are their only choices?

  • Save more
  • Work longer
  • Spend less

What if they save more?

The Schoolcraft’s would be a good candidate for a backdoor Roth IRA.  If they each did 6,000/yr as a backdoor Roth for the next 9 working years it would improve their situation by almost 375k and now the money would last until 86.

This only works 36% of the time.

What if they worked longer?

What if both Mr. and Mrs. Schoolcraft each work two more years until age 67.

Not only does this give them two more years of employment income, it gives them two more years to save, two more years to not withdrawal and two more years to grow their SS benefit and Investments.

The money now lasts until age 90 but runs a little too low to be confident.  What is they live to 95?  What if someone needs to move into a healthcare facility and that increases expenses.

I’m not sure about you but I do not want a plan that fails 13% of the time.

What if we spend less?

We talk with our clients a lot about expense tracking.  Monthly expenses are the biggest variable in retirement planning.

As a result, the Schoolcraft’s begin using our expense tracking sheet found at, and they discover some needless spending.  They now feel confident that they retirement spending need is only 90,000/yr.  This decrease in spending along with saving more money now and working two years longer gives their retirement chart the shape we want to see.

When we run this simulation 1000 different ways it still gives the Schoolcraft’s a 99% probability of success so now they know that they can: Retire With Confidence.


  • Many people are doing a good job but is it enough.  Are they maximizing their opportunities like backdoor Roth IRA, Single K, Roth Single K, Taxable Brokerage accounts.
  • Are they investing efficiently?  Are you taking too much or not enough risk?  Are you using low cost investments?
  • The earlier you start the easier it is to make the changes needed to get your plan on track.
  • If you know anyone who would benefit from going through this process, have them to reach out to us to schedule a no cost consultation.