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Case Studies

There are many financial products in the market, and so choosing the ones that best meet an individual client’s needs can be complicated.

Linda

Occupation: Freight Company HR Employee

Age: 62

Primary Goal: Determine financial readiness for retirement

Name: Linda

Primary goal: Determine if she was in a position to retire today, and if not today, when might that be.

At 62, Linda was nearing the end of a long and fulfilling career in the freight industry. She had worked for various freight companies over the years, but recently, the constant acquisitions by private equity firms had worn her down. Linda no longer found joy in her work and wanted to know if she and her husband could afford for her to retire. Unsure about her financial readiness, Linda sought the help of PFG to evaluate her situation and make an informed decision. She had some cash savings, a 401(k), and various other investments, but she needed clarity on whether these assets, along with Social Security, would be enough to support her and her husband’s lifestyle in retirement.

How PFG Helped Linda Achieve Her Goals:

Comprehensive Financial Assessment: The first step was to evaluate Linda and her spouse’s complete financial picture. PFG reviewed her and her husband’s savings, investment accounts, and anticipated Social Security benefits. We also worked closely with Linda to understand their goals and priorities, their monthly spending needs, factoring in any future expenses such as healthcare costs and travel.

Social Security Optimization: Linda was unsure when she and her husband should begin taking Social Security benefits to maximize their income. PFG ran multiple scenarios to determine the optimal time for each of them to claim Social Security, ensuring they would receive the highest possible benefit without depleting their savings too quickly. After finding the optimal age to take social security, we also talked with her about her feelings towards social security and how her health, longevity, and goals plays a part in deciding when to start social security.

Retirement Feasibility Plan: Using her current assets, PFG created a customized retirement plan for Linda and her husband. We projected their income, expenses, and investment growth, showing Linda that, if she desired, she could comfortably retire right away. This news gave her the peace of mind she needed to make the decision to leave her job.

Investment Strategy for Retirement: After deciding to retire, Linda consolidated her various investment accounts under PFG’s management. We helped her transition to a more moderate investment strategy designed to preserve her wealth while still allowing for growth in retirement. By streamlining her accounts and simplifying her portfolio, we ensured that Linda’s finances were aligned with her retirement goals.

Ongoing Financial Guidance: Although Linda was ready to retire, she still wanted guidance on how to manage her finances during this new chapter of life. PFG worked with her to create a sustainable withdrawal strategy for her investment accounts and worked towards a strategy of reducing future required minimum distributions, ensuring she would have consistent income in retirement while also accounting for inflation and unexpected expenses.

The Outcome:

A few months after consulting with PFG, Linda decided to retire, knowing she and her husband were financially secure. With a clear understanding of her financial picture, Linda was able to confidently leave behind the stresses of the freight industry and focus on enjoying her retirement. By consolidating her accounts with PFG, Linda benefited from a cohesive investment strategy and ongoing financial advice, giving her confidence in her future. She now enjoys her retirement with the assurance that her financial plan is tailored to her needs, allowing her to live comfortably and on her own terms.

Case studies may not be representative of the results of all clients and are not indicative of future performance or success.

Sarah

Occupation: Software Developer

Age: 34

Primary Goal: Diversify investment portfolio, plan for financial independence, optimize cash flow, tax planning

Name: Sarah
Primary Goal:

Diversify her portfolio from the concentrated position in her company stock, consolidate and rebalance her other IRA’s and non-retirement accounts, financial & estate planning.

Sarah has been a software developer at a tech company for over a decade. She is highly skilled and has received several promotions over the years, resulting in a substantial increase in both salary and benefits. One of the key benefits of her job was participation in her company’s Employee Stock Purchase Plan (ESPP), which allowed her to buy company stock at a discount. Over the years, she had built up a significant portion of her wealth in her employer’s stock. While Sarah appreciated the financial boost from the ESPP, she began to worry that having too much of her wealth tied up in one stock left her vulnerable to market fluctuations. That’s when she came to PFG, seeking help in diversifying her portfolio and developing a long-term financial plan.

How PFG Helped Sarah Achieve Her Goals:

ESPP Diversification Strategy: Sarah’s main concern was the large concentration of wealth she held in her company’s stock through the ESPP. PFG helped Sarah develop a plan to gradually sell portions of her company stock while minimizing tax liabilities. By reallocating these proceeds into a diversified portfolio, Sarah was able to reduce her exposure to a single company and spread her investments across different asset classes.

Comprehensive Portfolio Review: With the funds from her ESPP sales, we built a tailored portfolio for Sarah, balancing her desire for growth with risk management. Also, Sarah had built up a good nest egg inside her companies 401k and her own Roth IRA and Traditional IRA which were reviewed, updated, and consolidated when appropriate.
Tax-Efficient Strategy: Selling her ESPP shares required careful planning to avoid significant tax consequences. PFG collaborated with a tax professional to structure the stock sales strategically. We also helped Sarah maximize her contributions to her 401(k) and other tax-advantaged accounts, ensuring she was optimizing her savings while reducing her taxable income.

Cash Flow and Budgeting Plan: With her high income, Sarah wanted to ensure she was managing her finances efficiently while maintaining her lifestyle. PFG created a dynamic cash flow plan that allowed her to comfortably handle her expenses, set aside funds for retirement, and continue building her investments. An emergency fund was established to provide her with financial security in case of unexpected life changes.

Retirement Planning: Even though Sarah loves her job and is passionate about her work, she wanted the option of early retirement. PFG projected her retirement timeline and created a plan that would allow her to potentially retire by age 55, depending on her goals. By consistently investing and taking advantage of her company’s 401(k) matching, Sarah is now on a clear path toward financial independence.

Estate and Legacy Planning: PFG was able to talk through the concerns of a single individual when it came to medical and financial powers of attorney. With PFG’s help, Sarah was about to use her companies provided reduced estate planning that PFG found in her benefits package. Sarah now has medical and financial powers of attorney set in place in case anything happens and all of her accounts have proper beneficiary designations.

The Outcome:

By working with PFG, Sarah was able to reduce her reliance on her company’s stock while developing a diversified, tax-efficient portfolio. She now feels confident knowing her investments are not only aligned with her current goals but also set up to adapt as her life evolves. PFG provided Sarah with a comprehensive financial plan that goes beyond investing, including tax, retirement, and risk management strategies. Sarah continues to thrive in her role as a software developer, knowing that her financial future is secure and adaptable as she progresses in her career.

Case studies may not be representative of the results of all clients and are not indicative of future performance or success.

James

Occupation: Social Media Entertainer/Actor/Business Owner

Age: 27

Primary Goal : Plan for a complete career change including a large income increase, cash flow planning, financial planning, business planning

James started his career as a medical sales rep where he was successful early on in his career. He enjoyed the work, and in his free time he would publish videos to popular social media apps as a side hobby and for fun not knowing where it would take him. After a few hard months, James gained popularity and views started rolling in. He eventually became so successful in the social media space that he was able to transition from his medical sales career to a full-time entertainer/actor.

James sought help from PFG after a very successful year where he had excess cash sitting in a bank account and knew he had to do something with it, but he didn’t know necessarily what needed to be done. James came to us to in hopes we could at least help with getting the money he had sitting in a bank account invested into the market.

To James’ surprise, there was much more PFG could do to help him in his new venture. PFG & James got together and developed a strategy which included investing and so much more:

  • The most important thing PFG noticed right away was that James hadn’t yet set up a business for himself and he was receiving compensation under his own name, combining his business and personal life. PFG was able to introduce James to a tax professional willing to help business owners. Through our collaboration, we were able to help establish an S-Corp for James to keep his professional and personal life separate, reducing his personal risk. From there, we were able to help work through all his business income and expenses and established a path forward so he could keep track of his books for accounting purposes. Because his income jumped so high suddenly, we were able to talk with him about making estimated tax payments to avoid any penalties.
  • PFG though their own network, was also able to introduce James to a new agency who would help finding valuable deals and opportunities.
  • PFG helped James establish a cash flow plan and now he has an idea of where monies need to go once they come in.
  • PFG worked with James to open investment accounts and helped him open his own Individual 401(k) where he could defer some of his income to help reduce his taxes and save for an early retirement.
  • PFG and James developed a plan to save enough money in an emergency fund and once that was adequate, save for a down payment on a home.
  • PFG helped educate James on the importance of insurance planning once he got married and started having kids.
  • PFG helped educate James on potential foundations/charities he could help run down the road.

James now understands that working with financial professionals is more encompassing than just investing. He was on the right path when he started by taking advice from his parents/friend/colleagues and save money in bank accounts, but he felt great now that he has a plan tailored to him and his unique goals and situation. As James continues to build on his current endeavor, he knows that his plan will evolve and change with him as he goes through his life.

Case studies may not be representative of the results of all clients and are not indicative of future performance or success.

Alex

Occupation: Business Manager at a top 5 largest public company in the US

Age: 25

Primary Goal : Plan for a career change with a large income increase, open both non-retirement and retirement accounts, cash flow planning, financial planning Alex was extremely successful early on in his career and he even graduated college early and earned a high-level position in the largest private company in the US. He enjoyed the work he did there, but knew it was time for a change to further his career. Alex had a few interviews with top level companies and eventually got an offer from a top five largest public companies in the US.

For the past 5+ years since graduating, his position at his first employer allowed him to live a relatively worry-free daily life and to set some money aside for retirement. Alex sought help from PFG when he received the offer from his now new employer to see if we could help him manage the increase in his income, help him strategize a plan to pay off his student loans and car loan, consolidate his retirement plan and private employer stock, build wealth for the future and save for a down payment on a home.
The plan PFG & Alex put into place helped him in a number of ways:

  • Alex and PFG came up with a strategy for the new income that was coming in. We were able to identify how much of his income needed to go towards monthly expenses, establishing an emergency fund, contributing to the appropriate retirement and non-retirement accounts to save for his future retirement and goals, and a plan to set aside money with the intent to put a down payment on a home within a few years once rates settle.
  • Worked together and looked through his new employee handbook and made sure the right selection were made, and identified benefits that could be used in the future as Alex starts a family (estate planning offered by his employer at a reduced rate).
  • Educated Alex and private and public company stock and the tax implications behind those.
  • Developed a plan to pay off his short-term debts within 2 years.

Alex now understands how his finances all work together. He was glad he saved money in other retirement accounts and took advice from his parents, and now he has a tailored plan, unique to his goals and current situation. Alex now understands that financial planning is not a set it and forget it activity and knows his plan will evolve as his life evolves.

Case studies may not be representative of the results of all clients and are not indicative of future performance or success.