Many People are so busy today with their family and business that they have little time to look at their finance. We find that everyone has a plan, either by default or by design. Every comprehensive financial plan should cover the 6 key areas of finance:

1) Financial Planning* and Cash flow management
2) Risk Management and Insurance Analysis
3) Investment Management*
4) Tax Planning
5) Retirement Planning*
6) Estate Planning

It is important to cover these areas of finance as your go through your lifecycle planning.

Lifecycle Planning

Case Study: The Michael and Julie Jones Family

Michael, age 40, is a senior manager at a high tech company making $200,000.00 annually.   Julie, 38, is a senior accountant making $150,000 annually. They have two (2) children, Matthew, 6 years old and Jennifer, 2 years old. Currently, Michael and Julie own a home in Sunnyvale, California.

They were referred to Samson Chan, CFP® by their friend to learn more about college planning.

After the initial meeting and getting to know Michael and Julie’s goals and concerns, Samson discovered the following financial issues and concerns:

  1. Michael and Julie would like a financial/savings plan that will incorporate their various investments (investing, retirement, college saving)
  2. The couple would like to start saving for Matthew and Jennifer’s college years
  3. They want to consolidate their previous 401(k)s
  4. Provide a contingent plan so the family is protected

Through Samson’s IGNITE: FIRE planning process, he provided the following recommendations:

Financial Planning:

  • Based on Michael and Julie’s retirement projections, Michael and Julie will need to max out their 401k from $12,000 to $17,500 in order to have a comfortable retirement.
  • With a goal to fund 50% of the college tuition, Michael and Julie will be saving $200 per month for each child in a 529 savings account.  The family will gradually increase the savings after Jenny starts kindergarten.
  • Samson also recommended reviewing the current mortgage to eliminate the PMI and increase the family’s cash flow.

 Investment Management:

  • With consolidating Michael’s two 401(k)s and Julie’s 403(b) and 401(k) into their Rollover IRA, Samson also recommended a moderate portfolio, based on their risk tolerance, and time horizon.
  • To help eliminate some market risk, Samson also recommended individual muni bonds to protect the principal with better tax advantage and provide higher yields on part of the portfolio.

Risk Management:

  • Currently, Michael has $200,000 of life insurance at work and Julie has $100,000 of life insurance. Since both incomes are needed to sustain their current life style, Samson recommended $1,000,000 of life insurance for Michael and $1,000,000 for Julie, which will protect the family income if one of the parents dies prematurely.

Estate Planning:

  • Samson also recommended that the family obtain a living trust and referred them to a few attorneys to help assist them.


Michael and Julie now have a financial plan by design and are working with a team of financial professionals. They continue to save in their 401(k)s and their kids’ 529 accounts. They also feel secure, knowing that the family is sheltered with the proper life insurance and a family living trust. They are saving towards an investment property to diversify their overall portfolio and to obtain better tax deductions.

  Retirement Projections                                           Investments Allocation Review

This case study is based on a hypothetical, yet common client scenario, and is intended only to show the types of services Samson Chan can provide. Please talk to your attorney or accountant for legal and tax advice. Samson Chan, Investment Advisor Representative. Securities and Investment advisory services are offered solely through Ameritas Investment Corp (AIC). Member FINRA/SIPC. AIC and David White & Associates are not affiliated. Additional products and services may be available through Samson Chan or David White & Associates that are not offered through AIC. CA Insurance License: 0C40679