A Case Study of How We Transformed Goals Into Reality

By Jared Andreoli, CFP®, CSLP®

In the world of financial planning, there are a plethora of rules of thumb and popular sayings that get repeated seemingly ad nauseam. “Pay yourself first.” “Save 20% of your income for retirement.” “Buy low and sell high.” These are just a few of the most common sayings you may have come across. While those general pieces of advice aren’t necessarily wrong, there becomes an issue when you try to use generic advice to meet your personal, specific goals.

In our experience, the path to financial success is paved with personalized strategies designed to turn your unique dreams into reality. That’s why we’re excited to share a success story that demonstrates how a tailored approach can make all the difference in that endeavor. In this case study, we walk you through the financial journey of two of our clients, Steve and John (names changed to protect privacy). 

Their financial journey isn’t linear and doesn’t follow a standard template. That’s typically how it is with most people we work with. Whether you’re just out of residency or have been for a few years, this story shows you the possibilities that lie ahead when you partner with a financial advisor who truly understands your unique situation.

The Clients and Their Goals

Steve and John began their financial journey with us in October 2021, when Steve had just transitioned from his residency and was stepping into his new role as an attending physician. John, on the other hand, had been attending for a few years by then. As a gay couple, they maintain a civil union but are not officially married, meaning they each file their taxes as single. Much like any couple starting their journey, they aspired to establish financial stability and independence. And now with both of them in the workforce full time, they suddenly found themselves earning more money than they ever had, but they were unsure how to effectively manage their newfound income. 

With a shared passion for community service, Steve and John also wanted to ensure they could continue contributing to causes they cared about. Their circumstances presented a unique opportunity to develop a comprehensive financial plan that would help them navigate their new earnings, meet their community service goals, and create a strong foundation for their future.

Their Challenges

When Steve and John initially reached out to us, their financial life was in need of structure as well as numerous adjustments. Despite their increase in income, they hadn't yet taken steps to consolidate their banking accounts, nor did they have a plan for the extra cash which was now accumulating each time they got paid. 

On a related note, their major life goal was to purchase a home, which was complicated by their desire to move to a region with a much higher cost of living, all while the housing market was heating up. 

Additionally, Steve was burdened by a substantial student loan debt of $375,000, an issue that loomed large over their financial landscape. 

Finally, their savings rate was not optimized for their current income level, and both men had not revisited their long-term disability insurance since transitioning into their roles as attending physicians. 

While standard rules of thumb only addressed a specific issue or question, we realized that each challenge and goal was simply one piece of the puzzle in the overall picture of their financial health.

How We Helped

In order to address Steve and John’s challenges, we devised a comprehensive and personalized financial plan that addressed where they currently stood, where they wanted to go, and the best path forward. 

We began by consolidating their banking across various institutions, transitioning excess cash into a high-yield savings account to enhance their returns (and avoid the meager 0.01% interest rate many banks still offer). 

To tackle their ambition of home ownership, we assisted in calculating the savings necessary for a down payment, also offering guidance on how much house they could afford in their desired, higher-cost location. Unlike some homeowners who fall into the trap of purchasing a home as expensive as they can afford, we made sure they knew how much they could afford while still pursuing their other financial goals.  

For Steve’s significant student loan, we conducted a thorough evaluation of various income-driven repayment plans versus refinancing to private loans. Ultimately, we devised a strategy to pursue Public Service Loan Forgiveness (PSLF) which would allow him to save over $300,000 in payments over time as well as have the vast majority of his loans forgiven.

With their new, higher income, we encouraged them to save more for retirement in a more tax-efficient manner (an important piece of the puzzle for high-earning physicians). In their case, we utilized backdoor Roth IRAs because of their tax benefits, and then adjusted the asset allocation in their retirement accounts to align with their financial goals and risk tolerance. 

Finally, we addressed a piece many people neglect: long-term disability. We obtained increased coverage that matched their current income, and shielded them in case of a prolonged injury.

The Outcome

Over the past two years, Steve and John’s financial landscape has transformed remarkably. They have successfully navigated a cross-country move to a high-cost-of-living area, and with our assistance, realized their dream of purchasing their first home together. Their diligent savings plan, coupled with our strategic financial guidance, has increased their savings rate from 10% to 22%. Steve, in the course of this journey, switched jobs twice, an event we helped him navigate to facilitate a smooth financial transition. The proof of their financial progress can be seen in the impressive growth of their net worth by over $120,000. 

On top of these achievements, they were able to obtain comprehensive property insurance, providing an additional layer of financial stability. Today, Steve and John enjoy a balanced lifestyle, living in the present while also diligently preparing for the future. They are steadily ticking off their financial goals and are on track for a stable and rewarding financial future.

Can We Help Set You on the Right Track?

While your unique challenges may differ from Steve and John’s, our goal is still the same: we want to thoroughly understand your goals and any challenges you’ve had in reaching them so we can help you take the right financial steps.  

Unfortunately, figuring out the right thing to do financially isn’t always easy, and that’s where we’d love to come in and help. To get started, you can schedule a free consultation, or reach out to us by emailing jared.andreoli@simplicityfinancialllc.com or calling 414-207-6473. 

About Jared

Jared Andreoli, CFP®, CSLP®, is president and financial planner at Simplicity Financial, a fee-only RIA dedicated to helping early-career physicians conceptualize their financial picture and achieve their financial goals. Jared specializes in devising individualized financial road maps for clients, and he loves nothing more than a full day meeting with clients who value his partnership to solve problems—big and small. 

After college, Jared spent six years working as a mutual fund administrator for a large company. While he learned an immense amount about the financial world, he was missing the personal connection of working with individual clients. Combining his passion for finance and personal connection, he established Simplicity Financial in 2017.

Jared has a degree in finance with a concentration in financial planning from Western Kentucky University, along with the CERTIFIED FINANCIAL PLANNER™ (CFP®) and a Certified Student Loan Planner (CSLP®) certifications. Outside of work Jared enjoys cooking and traveling. He played baseball in college and still coaches occasionally. He and his wife recently welcomed a daughter, who occupies most of their time. To learn more about Jared, connect with him on LinkedIn.