The Richards Family
Service: Wealth Accumulation
Client: The Richards Family
Date: May 2026
Amount Saved: $100,000 in investment growth
Introduction:
The Richards family approached KSFG with the desire to plan for their future more strategically. They had been successful in their careers but felt they were not fully leveraging their income and assets to build long-term wealth. The family wanted to ensure that they could secure a comfortable retirement while also planning for their children's future education costs.
Client Background:
John and Sarah Richards, a professional couple, were in their early 40s and had two children, both in their early teens. Over the years, they had accumulated some savings and assets, including retirement accounts and taxable investment portfolios, but they were unsure if they were on the right track for future wealth accumulation. They had no clear investment strategy and hadn’t been proactive about maximizing their wealth-building opportunities.
Despite their good salaries, John and Sarah knew that they weren’t fully utilizing tax-advantaged accounts or investing with enough diversification. They felt their current savings might not be enough to achieve their long-term goals, and they wanted a comprehensive plan that would provide clarity and direction.
Challenge:
The Richards family faced several financial challenges:
- Unstructured Investment Strategy: While they had some investments, their portfolio was not diversified enough, and they lacked a clear, long-term investment strategy.
- Underutilized Tax-Advantaged Accounts: They were not maximizing contributions to their 401(k)s, IRAs, and other tax-efficient accounts, resulting in missed opportunities to minimize their taxable income.
- College Savings: With two children approaching college age, the Richards family had not started saving for tuition. They were concerned about the rising costs of higher education and unsure how to approach funding it.
- Retirement Preparedness: While they were contributing to retirement accounts, they weren’t sure whether their retirement savings would provide enough to maintain their desired lifestyle.
Solution:
KSFG provided the Richards family with a customized wealth accumulation plan that focused on both short-term and long-term goals. We started by assessing their existing assets and income, as well as their financial goals for the future. Our solution included the following key components:
- Investment Diversification: We helped the Richards family diversify their investment portfolio to include a mix of stocks, bonds, real estate investments, and other asset classes that matched their risk tolerance and time horizon. We also introduced alternative investment options like tax-advantaged municipal bonds and real estate investment trusts (REITs) to balance growth and income.
- Maximizing Tax-Advantaged Accounts: KSFG advised the family to fully utilize their 401(k) contributions and IRAs to reduce their taxable income. We also recommended opening 529 college savings plans for their children, allowing them to save for education expenses with tax-free growth.
- Retirement Planning: We created a more aggressive retirement savings plan for both John and Sarah, ensuring they were on track to meet their retirement goals. We calculated the amount they needed to save each year to retire comfortably and recommended reallocating some of their existing investments into higher-growth options, given their relatively long time horizon.
- College Savings Strategy: We recommended maximizing the contributions to the 529 plans for their children’s education. We also educated them on the tax benefits of 529 plans, helping them understand how contributions would grow tax-deferred and be used tax-free for qualifying education expenses.
- Estate Planning: To ensure their assets were protected for future generations, we helped the Richards family begin the process of estate planning, recommending life insurance policies and setting up trusts for wealth transfer.
Outcome:
The Richards family saw significant improvements in their wealth accumulation strategy:
- Increased Investment Growth: After diversifying their portfolio and reallocating some of their assets, their investment growth rate improved, adding an estimated $100,000 to their wealth over the next two years.
- Tax Savings: By maximizing contributions to their retirement accounts and 529 plans, they were able to reduce their taxable income and save thousands in taxes each year.
- Retirement Preparedness: With the new retirement plan, John and Sarah now felt confident that they would be able to retire comfortably, at the age they desired, without sacrificing their lifestyle.
- College Fund Success: Their children’s college savings plans are on track to cover tuition expenses, alleviating some of the financial burden associated with higher education costs.
Service: Wealth Accumulation
Client: The Richards Family
Date: May 2026
Amount Saved: $100,000 in investment growth
