Navigating Financial Confidence: Roger and Gina’s Journey to Clarity

Roger and Gina are a hardworking couple navigating the complexities of financial planning. Roger is a successful specialist physician earning between $650,000 and $850,000 annually, working as part of an independent medical group. Gina, his spouse, has traditionally let Roger handle their finances but now wants to take a more active role. Together, they are facing some financial concerns that many high-earning families encounter—especially in uncertain market conditions.

Key Financial Details:

• Income: Roger earns between $650,000 - $850,000 annually.
• Invested Assets: Approximately $400,000, primarily in Roth IRAs and other retirement accounts.
• Tax Strategy: Using a defined benefit plan to shelter income but facing limited access to funds.
• Liquidity Concerns: Most assets are tied in retirement accounts, making them inaccessible without penalties.
• Current Savings: Relying on cash flow for major expenses without a brokerage account for flexibility.

Tackling the Tax Challenge

One of their biggest worries? Taxes. With Roger’s high income, they have been using a defined benefit plan to shelter money from taxes. While this approach provides some tax relief, it has a downside—most of their money is tied up in retirement accounts. This setup limits their financial flexibility, making it difficult to access funds for unexpected expenses or important goals without penalties. Our initial discussions centered around identifying more efficient tax strategies that wouldn’t sacrifice their ability to access their money when needed.

Navigating Market Uncertainty

Roger and Gina also feel uneasy about the current market conditions. With around $400,000 invested, primarily in Roth IRAs and other retirement accounts, they’re questioning whether to continue investing heavily given the current political and economic environment. Our conversation highlighted the importance of having a diversified approach, including accessible brokerage accounts, to give them more options and confidence.

Creating a Clear, Consistent Plan

Gina’s desire to become more involved in their financial planning is a positive step. It’s crucial for both spouses to be on the same page, not just for peace of mind but for more informed decision-making. We emphasized the value of creating a clear, consistent financial plan that both of them can understand and actively engage in.

Ultimately, our goal is to help Roger and Gina feel confident about their financial future—knowing they have a plan that works for them, even in uncertain times.