CASE STUDIES

CASE STUDY:

Working with Physicians

The Challenge: Michael is married with three children.  He recently graduated medical school with over $300,000 in student loans.  He wants to become a partner in his practice but is concerned about his current debt and ensuring that he is managing his financial affairs wisely.  His job requires him to be on call on a regular basis, so he is looking to partner with someone who can proactively manage his finances, take the burden off his plate and free up time to spend with his family.

The Strategy: A colleague refers Michael to Tushingham Wealth Strategies.  He is interested in their “Personal CFO” platform for physicians to help oversee his finances.  After an initial meeting he realizes that the service goes well beyond just managing money and encompasses such areas as student loan planning, advice on buying into a practice and developing college planning strategies for his children.  They agree to work together and get started on an initial plan.

  • Michael learns that refinancing his student loans makes more financial senses than just consolidating them. Through guidance from Tushingham Wealth Strategies he finds a company to help refinance his six different loans into one loan. The process saves him thousands of dollars in interest and provides peace of mind knowing that his rate will never increase.
  • The practice Michael works for has offered him an opportunity to become a partner. Tushingham Wealth Strategies walks Michael through the entire process by providing guidance on financing options, his employment contract and succession planning. All of Michael’s legal documents are then scanned to his own personal online Wealth Portal for easy access.
  • Michael realizes that putting three children through private college can cost a small fortune. Tushingham Wealth Strategies helps Michael not only save for college but also helps determine which colleges are most likely to offer his children the most merit aid. This strategy helps reduce the overall cost of education and minimize student loans for his children.
  • Although Michael recently graduated Medical school he is already concerned about saving enough for retirement. As part of the “Personal CFO” planning process a financial independence plan is put into action. The plan focusses on mitigating Michael’s taxes, optimizing his excess cash flow and coordinating all plan actions with a team of attorneys and CPAs.

The Results: Whether it’s navigating his employee benefits or trying to make sense of the recent tax code changes, Michael knows his Personal CFO is one call away, any day of the week.  Having a point person proactively planning and coordinating his financial life has freed up an immense amount of time for Michael to focus on building his business and spending time with his family.

CASE STUDY:

Personal CFO for Business Owners

The Challenge: Reece is married with two young children. He is part owner of a successful medical practice that consumes an enormous amount of his time. He wants to make sure that he is properly planning from a tax, investment and business standpoint but lacks the time and expertise to do so.

The Strategy: After multiple discovery meetings Reece decides to work with Tushingham Wealth Strategies and utilize their “Personal CFO” service. A complete review of his business, financial and tax filing history is conducted, and then a team of professionals is assembled to address all of Reece’s personal and business planning needs.

  • Reece, who was preparing his own tax returns, had failed to take a number of tax deductions over the past few years. With the help of a CPA he amends prior year returns and receives a refund of nearly $5,000.
  • The company had no succession plan in place and Reece had no protection in the event of a disability. Tushingham Wealth Strategies helps establish a “transition” plan to protect Reece’s family in the event he is unable to work or needs to sell the business.
  • The company had no retirement plan in place for Reece or the staff. Tushingham Wealth Strategies helps establish a 401(k) plan to help Reece shelter over $35,000 a year in income for retirement and satisfy an important employee need.
  • Reece learns that refinancing his current mortgage can save his family over $50,000 in interest over the life of the loan. Tushingham Wealth Strategies helps coordinate a loan refinancing with a local loan officer.

The Results: Having a “Personal CFO” by his side has provided Reece with peace of mind and confidence in his business, financial and personal life. He receives monthly communication updates on plan implementation and any potential risks that might derail his objectives. If he were to become incapacitated in anyway his family would be provided with an income stream and the business would continue to operate normally.

CASE STUDY:

Your Best Strategy to Pay for College

The Challenge: Ryder and Kyla have two children, Kramer age 17 and Fletch age 14. Ryder is a human resources manager and Kyla owns a law firm. Both plan on retiring in the next five years however Kramer’s education costs are projected to be over $265,000. Ryder and Kyla want to help fund educations for their children but do not want to jeopardize their own retirement.

The Strategy: Ryder and Kyla contact Tushingham Wealth Strategies and inquire about their college planning services. After the first meeting they quickly learn that “true” college planning goes well beyond just opening a 529 account and encompasses areas such as college selection, tax aid and financial aid. They agree to establish a college plan for both Kramer and Tucker.

  • Ryder and Kyla discover that Kramer would likely be eligible for a substantial amount of financial aid at an out of state private school. Based on Kramer’s academics the aid would most likely come in the form of a scholarship and allow them to afford the school with minimal student loans.
  • Since Kramer works at Kyla’s business they discover how Kramer’s income would make him eligible to claim an education tax credit worth $2,500 a year. Initially Ryder and Kyla had disregarded the credit since they did not qualify for the credit on their own tax return.
  • Initially Ryder had planned on paying for Kramer’s first year of college by selling appreciated stock in a brokerage account. He learns that this would actually decrease Kramer’s financial aid eligibility. Tushingham Wealth Strategies proposes a better option; establish a pension plan for Kyla’s law practice. Contributions not only aid in funding Ryder and Kyla’s retirement and reducing their taxes but also increase Kramer’s eligibility for financial aid.
  • By going through the college planning process Ryder and Kyla can confidently begin preparing for Fletch’s education and their own retirement. They also learn that a number of college savings vehicles could help defray the cost of Fletch’s education.

The Results: Both Ryder and Kyla are comforted to realize that they can afford to send both children to college and protect their assets and income for their pending retirement. Not only will both children receive an education at top rated schools but they should also graduate with minimal student loan debt. This will better prepare their children so they can begin saving immediately after college for their own financial goals.

Scenarios presented are for illustration purposes, are not an actual client and may not be typical of all clients. Individual results will vary.

Schedule an Appointment

Please provide your information below to speak with an advisor.

  (866) 505-9016          Schedule a Call          LinkedIn          Weekly Insights

  Client Login:    Wealth Portal    First Clearing

About Tushingham Wealth Strategies

Our goal is to help physicians and executives proactively plan for their retirement by serving as their “Personal CFO”, so that they may live their ideal life worry-free. Our Personal CFO service will guide you in making smart financial decisions in areas such as "late-stage" college planning, tax mitigation and wealth management.

About Tushingham Wealth Strategies

Our goal is to help physicians and executives proactively plan for their retirement by serving as their “Personal CFO”, so that they may live their ideal life worry-free. Our Personal CFO service will guide you in making smart financial decisions in areas such as "late-stage" college planning, tax mitigation and wealth management.

  5351 Old Garden Rd. Wilmington, NC 28403

©2019 Tushingham Wealth Strategies, LLC

  5351 Old Garden Rd. Wilmington, NC 28403

©2019 Tushingham Wealth Strategies, LLC

Tushingham Wealth Strategies, LLC is an Investment Adviser registered with the State of North Carolina.

Pin It on Pinterest