Built around what matters most to your family
Marcus & Elena Reeves
Prepared March 11, 2026
Please read carefully before reviewing this document
This financial plan is a hypothetical sample document created for demonstration and illustration purposes only. The client names, personal details, financial figures, account balances, income amounts, and all other data presented herein are entirely fictional. Any resemblance to actual persons, living or deceased, or actual events is purely coincidental.
Nothing in this document constitutes financial advice, investment advice, tax advice, legal advice, or any other form of professional advice. This document should not be relied upon to make financial decisions. The strategies, recommendations, and projections described are illustrative examples only and may not be appropriate for any actual individual or situation.
The financial calculations, tax figures, contribution limits, interest rates, account types, insurance estimates, and all other numerical and factual claims in this document have not been independently verified for accuracy. They were generated by an AI system and may contain errors, outdated information, or incorrect assumptions. Do not rely on any specific number, limit, rate, or regulatory detail presented here without independent verification by a qualified professional.
This document was generated with the assistance of artificial intelligence. While designed to demonstrate the format and structure of a comprehensive financial plan, the content is synthetic. AI-generated financial information may be incomplete, inaccurate, or misleading. Any financial plan used for actual decision-making should be prepared by a qualified financial professional using verified client data.
Reviewing this sample document does not create a financial advisory relationship, fiduciary obligation, or professional engagement of any kind. No personalized advice is being offered or implied. Consult a licensed financial advisor, tax professional, or attorney before making any financial decisions.
Any forward-looking statements, projections, growth estimates, or hypothetical returns in this document are for illustrative purposes only and are not predictions or guarantees of future results. Actual investment performance, tax outcomes, insurance costs, and financial results will vary materially. Past performance does not indicate future returns. All investing involves risk, including the possible loss of principal.
"We've spent twenty years building something from nothing. Now we want to make sure we don't lose it — and that we actually get to enjoy the life we've been too busy building to live."
— Marcus & Elena, during our first meeting
The story behind the spreadsheet
Marcus, 52, is the sole owner of Reeves Family Dentistry, a two-location general and cosmetic dental practice in Scottsdale, Arizona. He built the practice from a single chair in a strip mall 19 years ago. Today it grosses $2.6M annually and employs 22 people, including two associate dentists. He's proud of what he's built but increasingly exhausted. His hands hurt at the end of every day. He said the quiet part out loud in our meeting: "I love being a dentist. I'm just not sure I love being a business owner anymore."
Elena, 50, was a pediatric occupational therapist who left clinical practice eight years ago to manage the business side of the dental offices — HR, billing, vendor relationships, insurance credentialing. She's good at it and the practice runs better because of her, but she didn't choose this career. She fell into it because they couldn't afford to hire a practice manager and also save aggressively. Now she wonders what she'd do if she had the freedom to choose something for herself. She mentioned wanting to go back to school — maybe a master's in counseling.
They have three children: Ava (22, finishing her final year at ASU, no student debt — Marcus insisted on paying in full), Mateo (19, sophomore at University of Arizona), and Sofia (15, a high school sophomore who dreams of studying abroad). The Reeves family lives in a 4-bedroom home in North Scottsdale they purchased in 2014 and substantially renovated in 2021.
They came in with a filing box. Inside: a stack of statements, three different life insurance policies they bought at different times from different people, a SEP-IRA Marcus opened a decade ago, a neglected brokerage account, and a legal envelope containing a will they signed in 2009 when Ava was six. They want someone to look at all of it, tell them the truth, and give them a path to the next chapter.
Where you stand — clearly and without spin
| Account | Owner | Balance |
|---|---|---|
| Retirement Accounts | ||
| SEP-IRA — Schwab | Marcus | $685,000 |
| Traditional IRA — Vanguard (rollover from old 401k) | Elena | $62,000 |
| Roth IRA — Vanguard | Elena | $33,000 |
| Business Assets | ||
| Reeves Family Dentistry (estimated practice value) | Marcus | $1,200,000 |
| Business Checking — Chase | Business | $145,000 |
| Business Equipment (net of depreciation) | Business | $310,000 |
| Taxable Investments | ||
| Joint Brokerage — Schwab | Joint | $178,000 |
| Individual Brokerage — Schwab | Marcus | $87,000 |
| Education Savings | ||
| 529 Plan — Mateo | Joint | $58,000 |
| 529 Plan — Sofia | Joint | $87,000 |
| Cash & Liquidity | ||
| Joint Checking — Chase | Joint | $42,000 |
| High-Yield Savings — Marcus Goldman | Joint | $198,000 |
| Real Estate | ||
| Primary Residence (North Scottsdale) | Joint | $1,180,000 |
| Life Insurance (Cash Value) | ||
| Northwestern Mutual Whole Life — Marcus | Marcus | $68,000 |
| Term policies (2) — no cash value | Both | $0 |
| Liabilities | ||
| Mortgage (3.375%, 18 yrs remaining) | Joint | ($300,000) |
| Practice Expansion Loan (5.25%, 4 yrs remaining) | Marcus | ($185,000) |
| Home Renovation HELOC (6.8%, variable) | Joint | ($62,000) |
| Tesla Lease (remaining payments) | Joint | ($18,000) |
| Ava's final year tuition (committed) | Joint | ($14,500) |
| Net Worth | $3,210,000 | |
| Category | Monthly | Annual |
|---|---|---|
| Income (After All Taxes) | ||
| Marcus — Practice draws (net of tax estimates) | $22,500 | $270,000 |
| Elena — W-2 (net) | $5,200 | $62,400 |
| Investment income (dividends, interest) | $800 | $9,600 |
| Total After-Tax Income | $28,500 | $342,000 |
| Fixed Obligations | ||
| Mortgage (PITI) | $4,200 | $50,400 |
| Practice Loan Payment | $4,400 | $52,800 |
| HELOC Payment | $850 | $10,200 |
| Tesla Lease | $680 | $8,160 |
| Insurance (auto, home, umbrella, life premiums) | $1,100 | $13,200 |
| Mateo — Tuition & Living (U of A) | $2,400 | $28,800 |
| Living Expenses | ||
| Groceries & Household | $1,600 | $19,200 |
| Dining & Entertainment | $1,800 | $21,600 |
| Utilities, Internet, Phone | $580 | $6,960 |
| Sofia — Activities, School, Driving | $650 | $7,800 |
| Health & Fitness (gym, supplements, copays) | $500 | $6,000 |
| Personal Care & Clothing | $600 | $7,200 |
| Discretionary & Lifestyle | ||
| Travel & Vacations | $2,200 | $26,400 |
| Home Maintenance & Landscaping | $900 | $10,800 |
| Charitable Giving (church + community) | $1,200 | $14,400 |
| Miscellaneous / Buffer | $700 | $8,400 |
| Total Spending | $24,360 | $292,320 |
| Current Savings | ||
| SEP-IRA Contribution | $5,625 | $67,500 |
| 529 contributions (Sofia only) | $500 | $6,000 |
| Total Directed Savings | $6,125 | $73,500 |
| Monthly Surplus / Unallocated | ($1,985) | ($23,820) |
Your goals — in your words, ranked by what matters most
Marcus wants to sell the practice — not tomorrow, but within a window that gives him time to maximize value and find the right buyer. His ideal scenario: sell to one of his associate dentists in a structured buyout, stay on 1–2 days a week for a transition year, then walk away cleanly. The practice needs to be "sale-ready" — meaning financials are clean, revenue isn't overly dependent on Marcus personally, and the physical plant is in good shape. Estimated sale price: $1.0M–$1.4M depending on preparation. Elena wants to know: if we sell for $1.2M after taxes, is that enough — combined with everything else — for us to never have to worry?
Ava is nearly done (one semester left, already funded). Mateo has two more years at U of A — estimated remaining cost: $55K–$60K. Sofia has three years of high school left and then four years of college, possibly out-of-state or private if she pursues her interest in international relations. Estimated total for Sofia: $140K–$220K depending on school. She also wants a semester abroad — Marcus has already promised it. The Reeves family ethos is that education is non-negotiable. They watched friends' kids graduate buried in loans. They refuse to let that happen.
Marcus and Elena don't want to stop being productive. But they want to choose what productive means. Elena wants time to pursue the counseling degree. Marcus wants to mentor young dentists, maybe do volunteer dental work internationally. They estimate their post-practice lifestyle will cost $14,000–$16,000/month in today's dollars (less than now, with no practice overhead, no tuition, and a paid-off house). They want to know they can sustain that for 30+ years without running out. Estimated target: $2.8M–$3.4M in investable liquid assets at retirement, not counting the home or Social Security.
What needs to change to close the distance between here and there
Here's the candid version: you've built a remarkable financial foundation. $3.2M in net worth as a first-generation practice owner is exceptional. But the shape of that wealth has some structural problems — and the next 5–7 years are where those problems either get solved or become permanent.
You're contributing ~$67K/year to a SEP-IRA. That's good — but you're leaving six figures on the table. A solo 401(k) with a cash balance (defined benefit) plan could shelter $150K–$200K per year from taxes at your income level. That's $80K–$130K more per year in tax-deferred savings. Over 5–7 years, that's $400K–$900K in additional retirement assets — plus $30K–$50K in annual tax savings. This is the single highest-leverage change in this entire plan.
Right now, the practice's value is deeply tied to Marcus being there every day. Revenue concentration (40%+ from Marcus personally), no documented operations manual, inconsistent associate contracts, and deferred equipment upgrades would all suppress the sale price by 15–25%. A buyer — or a buyer's lender — will discount heavily for "key man" risk. Every year you delay preparation, you lose negotiating leverage.
Your will names a guardian for Ava — who is now 22. It doesn't mention Mateo or Sofia (they weren't born yet). There's no trust structure, no business succession language, no incapacity planning, and the life insurance beneficiaries haven't been reviewed. The whole life policy is costing you $12,000/year in premiums for $250K of coverage — we need to evaluate whether that money is working hard enough.
The 2021 renovation was beautiful — and it was financed on a variable-rate HELOC now charging 6.8%. That $62K balance is costing $4,200/year in interest. Combined with the Tesla lease and the small monthly deficit, there's a pattern of spending that grows to match income. It's not irresponsible. But at your income level, every unstructured dollar that leaks out is a dollar that could have been compounding tax-deferred for the next 8 years.
If Marcus can't use his hands, everything stops — the income, the practice value, the retirement plan contributions. He has no individual disability policy. The practice has a basic group plan that covers 60% of his W-2 salary only — not the distributions that fund most of your lifestyle. That's a $130K+ annual income gap. For a dentist in his fifties, this is the most important insurance coverage that's missing.
You give $14,400/year to your church and local community. That's meaningful. But you're giving cash from a checking account. If you gave appreciated stock instead, you'd eliminate the capital gains and still get the full deduction. A donor-advised fund could also let you "bunch" multiple years of giving into high-income years before retirement, creating a larger tax benefit when your bracket is highest.
What to do, why it matters, and the context you need to feel confident
Work with a TPA (third-party administrator) to establish a solo 401(k) with elective deferrals and employer profit-sharing, plus a cash balance defined benefit plan layered on top. Together, these structures allow total annual contributions of $150,000–$200,000 (depending on actuarial design), compared to your current $67,500 SEP-IRA maximum. Roll the existing SEP-IRA into the new solo 401(k) to consolidate. Begin making contributions in Q1 2027 (plans need to be established by December 31, 2026).
You're in the highest marginal tax bracket you'll likely ever be in — right now. Every dollar you shelter today saves 32–37 cents in federal tax. More importantly, those dollars compound tax-deferred for the next 8–30 years. An extra $100K/year in contributions for 6 years, compounding at 7%, becomes roughly $900K by the time you're 60. That's the difference between a comfortable retirement and an abundant one. And it happens to also reduce your annual tax bill by $30K–$50K. This is the biggest unlock in this entire plan.
A cash balance plan is a type of defined benefit plan designed for high-income small business owners. It's not a pension in the old-school sense — it's a tax-shelter engine. You commit to a set contribution each year based on an actuarial calculation, and the money grows in a separate trust. When you retire, you roll it all into an IRA. The catch: you're committing to fund it annually for at least 3–5 years (to pass IRS non-discrimination rules), and if you have full-time W-2 employees, you may need to make small contributions for them too. For your practice — with most staff classified correctly and associate dentists on 1099 or their own entities — the cost is very manageable relative to the tax savings. We'll coordinate with a TPA who specializes in dental practices to design this optimally.
The difference between a practice that sells for $900K and one that sells for $1.3M is almost entirely about preparation — not clinical quality. Buyers (and their lenders) pay premiums for practices where revenue will survive the seller leaving, where systems are documented, where the staff is stable, and where the books are clean. Every dollar you spend on preparation returns 3–5x at the closing table. This is a slow-motion project — it takes 2–3 years to do well — which is why starting now matters, even if you don't plan to sell for 5–7 years.
Dental practice valuations typically range from 60–85% of annual collections, depending on profitability, location, patient mix, and transferability. At $2.6M in collections, a well-prepared practice in Scottsdale could command $1.3M–$1.5M. An unprepared one might fetch $850K–$1.0M. The biggest value-killer is "key man dependency" — if buyers believe patients will leave when Marcus leaves, they'll discount accordingly. By gradually shifting patients to the associates now, you prove that the practice retains revenue without Marcus. This also has the side benefit of reducing Marcus's clinical hours, which directly addresses the wear on his hands and his quality of life starting now, not later.
Pay off the $62K HELOC balance immediately from the Marcus Goldman high-yield savings account. Restructure monthly cash flow: redirect the $850/mo HELOC payment plus $1,150/mo from savings surplus into a systematic investment plan in the joint Schwab brokerage account. This creates $2,000/month ($24K/year) in new invested savings and eliminates the monthly deficit entirely. Also: when the Tesla lease ends in 18 months, don't replace it with another lease — buy a vehicle with cash or a low-rate loan.
The HELOC is costing you 6.8% in after-tax interest — and since Arizona doesn't allow HELOC interest deduction for state taxes and the standard deduction now exceeds your itemizable deductions, you're getting zero tax benefit from this debt. Paying it off is a guaranteed 6.8% return on $62K. More importantly, eliminating the monthly deficit breaks the pattern of quietly drawing down savings. It changes the psychological dynamic from "we always have enough cash around" to "every dollar has a destination."
After paying off the HELOC, you'll still have $136K in cash savings — roughly 5.5 months of total spending. That's more than adequate for a household with a stable practice generating predictable revenue. The remaining practice loan at 5.25% is worth keeping — it's a business expense, it's deductible, and at 4 years remaining the principal reduction is accelerating. Paying it off early isn't as valuable per dollar as funding the retirement plan.
Your 2009 will is essentially void for practical purposes — it doesn't account for two of your three children, your current asset levels, the practice, or your actual wishes. If Marcus dies or becomes incapacitated without updated documents, Elena has no legal authority over the practice, no clear succession path, and the business could lose value rapidly while courts sort out control. Arizona's probate process would cost 2–4% of the estate in fees and take 6–12 months. A trust avoids all of this — private, fast, and under your family's control.
The whole life policy deserves special attention. You've paid roughly $12,000/year for 14 years (~$168K in premiums) and have $68K in cash value and $250K in death benefit. Whether to keep, surrender, or exchange this into a paid-up policy depends on several factors including your health, the policy's internal rate of return going forward, and whether the death benefit is still needed given your other coverage. We'll request an in-force illustration and model all three scenarios. I have a referral to an estate planning attorney in Scottsdale who works regularly with practice owners. Typical cost for this scope: $5,000–$7,500.
Apply for an individual, own-occupation, specialty-specific disability insurance policy covering $15,000–$18,000/month in tax-free benefit. This supplements the inadequate group plan and covers the income gap from practice distributions. Apply immediately — underwriting takes 6–8 weeks and any health change could make this uninsurable. Expected premium: $600–$900/month given Marcus's age and specialty.
Marcus is a 52-year-old dentist whose income depends entirely on his hands, his eyes, and his ability to stand for hours. He's already experiencing hand fatigue. A disability event — carpal tunnel, a shoulder injury, a neurological issue — doesn't just end his clinical income. It accelerates the need to sell the practice (under distress, at a steep discount) while simultaneously eliminating the primary income source for every other goal in this plan. This is the financial equivalent of building a house without a foundation. It's the first thing an insurer will ask about if you apply next year, and the answer might be different than it is today.
"Own-occupation" means the policy pays if Marcus can't practice dentistry — even if he could do something else. This is critical for specialists and procedural providers. Many group plans use "any occupation" definitions, which means they stop paying if you can work at a desk job. For a dentist earning $400K+ from clinical work, an "any occupation" policy that pushes you into a $60K administrative role is essentially worthless. We'll work with a disability insurance specialist who focuses on medical/dental professionals — they understand how to structure coverage that the big group carriers often can't match.
You're already generous — $14,400/year is meaningful giving. But by writing checks from your bank account, you're giving after-tax dollars and missing a significant tax benefit. If you donate stock that's appreciated substantially, you avoid the capital gains tax on those shares and still get a deduction for the full market value. The DAF bunching strategy amplifies this further — it converts your standard-deduction years into itemizing years, effectively creating $3,000–$5,000/year in additional tax savings on money you were already planning to give away. Same generosity, better math.
A donor-advised fund works like a charitable checking account. You contribute cash or stock, get an immediate tax deduction, and then recommend grants to qualified charities whenever you choose — this week, next year, or a decade from now. The money grows tax-free inside the fund. You maintain advisory privileges over where it goes. Your church, your local nonprofits — they all qualify as grant recipients. Marcus's individual brokerage at Schwab has several positions with substantial unrealized gains. Those are the first shares we should contribute. This is one of those rare strategies where everybody wins: you give the same amount, the charities receive the same amount, and you pay meaningfully less in taxes.
Increase Sofia's 529 contributions from $500/month to $1,200/month. Additionally, make a one-time contribution of $20,000 from the excess savings balance. Continue funding Mateo's remaining tuition from the existing 529 balance ($58K covers his remaining ~$60K in costs — essentially done). For Sofia's potential study-abroad semester, earmark $15K within the 529 — qualified higher education expenses include study-abroad programs at eligible institutions.
Sofia's college start is 3 years away. If she attends an out-of-state public university or a private school — both likely given her interests — you're looking at $55K–$75K per year. That's $220K–$300K total. Right now you have $87K saved for her. With $1,200/month in new contributions plus the $20K lump sum and 6 years of growth (3 years pre-college + 4 years during), you'll have $160K–$180K — covering 60–80% of even the expensive scenario, with the rest fundable from current income. More importantly, you will have kept your promise: no debt.
Arizona offers a state tax deduction for 529 contributions — up to $4,000 per beneficiary for married filing jointly (or $2,000 each). You're currently contributing only $6,000/year and likely not maximizing the deduction. At $14,400/year in contributions, you'll capture the full state benefit. The 529 should be invested aggressively (90/10) for the next 2 years, then shifted to moderate (70/30) as Sofia enters her junior year of high school. If she wins scholarships, unused 529 funds can be rolled to a Roth IRA (up to $35K lifetime, under recent legislation) or transferred to future grandchildren.
Between the practice income, the new retirement plan structure, charitable strategies, education deductions, and the eventual practice sale — your tax picture is one of the most impactful variables in your financial plan. A $30K–$50K annual swing from proactive tax management is realistic at your income level. Over the 6 years before retirement, that's $180K–$300K that either goes to the IRS or stays in your pocket. Tax planning isn't something that happens in April. It's a year-round discipline.
One specific item: Elena's traditional IRA ($62K) needs to be dealt with before we can cleanly execute backdoor Roth contributions for her. The pro-rata rule means that if she has pre-tax IRA money, a portion of each Roth conversion will be taxable. The solution: roll her traditional IRA into the new solo 401(k) (if she's eligible as a W-2 employee of the practice) or into the cash balance plan. Once the traditional IRA balance is zero, the backdoor Roth path is clean. This is a one-time fix that pays dividends for the rest of her life.
Everything that needs to happen, organized by when
Transfer from Marcus Goldman high-yield savings to Chase HELOC. Call the bank to confirm payoff amount including accrued interest. Request written confirmation of $0 balance.
I'll send you a referral to a broker who works with dental professionals. Get the application started this week — underwriting takes 6–8 weeks and your current health is your best asset. Delay is the enemy here.
I'll provide a referral. Call to get on the calendar — attorneys who handle business succession typically book 3–4 weeks out. Bring the 2009 will, all three life insurance policies, and a list of all account titles.
Log into the 529 plan website and update the automatic contribution. Also initiate a one-time $20,000 transfer from savings.
The plan must be established by December 31, 2026 to allow contributions for the 2026 tax year. Design phase takes 4–6 weeks. Start now to leave room for revisions.
Get a formal valuation and a "readiness roadmap." This is a separate engagement from the eventual sale broker. Expect cost: $5K–$10K. It will pay for itself 10x over at the sale table.
Trust, wills, business succession provisions, powers of attorney, healthcare directives, beneficiary audit across all accounts. Fund the trust by re-titling the home and brokerage accounts.
Auto-transfer from Chase checking to Schwab joint brokerage on the 1st of each month. Invest in a diversified 70/30 index portfolio. This replaces the HELOC payment + deficit fix.
Minimum initial contribution: $5,000. Fund with appreciated stock from Marcus's individual brokerage. Begin routing church and charity giving through the DAF.
Sign plan documents, establish custodial accounts, process the SEP-IRA rollover. Make initial contributions before year-end to capture 2026 tax benefit.
Shift patients to associates. Track revenue per provider monthly. Goal: Marcus at 60% of practice revenue (down from 40%+) within 18 months.
Contribute $40K–$45K in appreciated stock to the donor-advised fund before December 31. Distribute $14,400 in grants to church and charities. Carry the remainder forward for 2027–2028 grants.
Confirm Elena's eligibility as a W-2 employee of the practice. Process the rollover to clear the pro-rata rule. Then execute the backdoor Roth for 2026 ($7,000).
Request an in-force illustration from Northwestern Mutual. Model three scenarios: keep, surrender for cash value, or 1035 exchange to a paid-up policy. Decision by Q4.
Track all goal progress, review practice financials, rebalance portfolios, adjust cash flow, and discuss life changes. 45 minutes, four times per year.
Coordinate with CPA: project income, model retirement contributions, DAF strategy, estimated payments, and practice distribution timing. Never let April be a surprise.
$7,000 contribution and immediate conversion each January. Set a recurring calendar reminder.
Update the informal valuation each year. Track revenue per provider, patient retention, and key metrics. Adjust the exit timeline if the market shifts.
Review beneficiary designations, coverage amounts, and trust funding status. Update for any life changes: kids aging out, asset changes, health changes.
A compass for when decisions feel hard
We built this life with our hands and our commitment to each other. We use money to protect what we've created, to give our children the start we never had, and to earn the freedom to choose what comes next. We don't measure wealth by what we accumulate — we measure it by the options it gives us. Every financial decision we make should move us closer to a life where we work because we want to, not because we have to.
The single most important thing to do right now
This plan is a living document. We'll revisit it together every quarter — because the best plan isn't the perfect one, it's the one that adapts as your life changes and the one you actually follow.