At Calamita Wealth Management, we specialize in providing wealth management solutions to affluent individuals over age 50 and their families. Our financial planning approach goes beyond simply reviewing finances and investment portfolios. We take the time to understand each of our client’s unique lifestyles, personal goals, family dynamics, and passions so we can ensure their money is actively helping improve their lives and create lasting legacies.
The following client case studies showcase how we helped clients navigate complex financial situations, achieve their retirement goals, and adapt to life’s unexpected challenges. These real-world examples (names changed for privacy purposes)) demonstrate our commitment to personalized financial planning and our ability to guide clients through both planned transitions and unforeseen circumstances.
Understanding Our Case Study Approach
Our case studies illustrate the tangible results we achieve for clients through comprehensive financial planning. Each client relationship begins with an in-depth discovery process where we examine not just financial statements and account balances, but also personal values, family dynamics, health considerations, and long-term aspirations. This holistic approach allows us to create customized strategies that address each client’s specific needs and circumstances.
The case studies presented here represent common scenarios we encounter with clients in the Charlotte area and beyond. While individual results vary based on each client’s unique situation, these examples demonstrate our problem-solving methodology and the types of challenges we help clients overcome. From retirement planning and wealth preservation to estate planning and tax optimization, our comprehensive approach addresses all aspects of our clients’ financial lives.
Case Study #1: How We Helped Clients Plan For Retirement After Spousal Loss
Initial Situation and Goals
Mark and Megan became clients in 2011 when they were both working professionals in their mid-50s. Their primary reason for hiring us was straightforward but critical: they wanted to determine if they were on track to retire comfortably by age 65. Like many dual-income households approaching retirement, they had been saving consistently but lacked confidence about whether their efforts would be sufficient.
Our initial comprehensive financial analysis revealed several concerns. Mark and Megan had their investment portfolio allocated very conservatively—significantly more conservative than appropriate for their age, time horizon, and risk tolerance. This overly cautious approach was limiting their portfolio’s growth potential during their peak earning and saving years. Additionally, we discovered they weren’t contributing enough to their employer-sponsored retirement accounts to reach their stated retirement goals.
Our Strategic Recommendations
Given these findings, we developed a multi-faceted strategy to get Mark and Megan on track for their desired retirement. First, we conducted a detailed budget analysis and identified opportunities to increase their 401(k) contributions without significantly impacting their current lifestyle. By making strategic adjustments to discretionary spending and redirecting some cash flow, they were able to substantially increase their retirement savings rate.
We also worked with them to secure low-cost supplemental life insurance coverage through their employers. Because they hadn’t yet accumulated sufficient assets to fully fund their retirement goals, this insurance protection was crucial. It meant that if one of them passed away unexpectedly before reaching their savings targets, the surviving spouse would still be financially secure and able to maintain their planned lifestyle.
Navigating Unexpected Loss
Mark successfully retired at the end of 2018 as originally planned, but tragically passed away the following year.
Beyond the profound emotional shock of losing her spouse, Megan faced significant concerns about her financial future. Would she have enough money to maintain her lifestyle? Could she still afford to retire as planned? These are the difficult questions that arise when life doesn’t follow the expected path.
This is where our comprehensive planning and the life insurance coverage we had implemented years earlier proved invaluable. We immediately helped Megan transition into widowhood from a financial perspective, working sensitively through the necessary paperwork and decisions while she grieved. We updated her financial plan to reflect her new circumstances, incorporating the life insurance proceeds and adjusting projections to ensure she still had sufficient resources to live a fulfilling retirement on her own.
Successful Retirement Transition
When Megan decided she was ready to retire last year, we guided her through several complex decisions. We worked closely with her and the local Social Security office to determine the optimal claiming strategy based on the options available between her own Social Security benefits and survivor benefits. This analysis is particularly important for widows, as the claiming strategy can significantly impact lifetime income.
We also helped Megan update her estate plan to reflect her changed family situation and set up systematic distributions from her investment portfolio to supplement her Social Security income. This included careful tax planning to minimize her tax burden while ensuring sufficient cash flow for her needs.
Today, Megan is enjoying retirement and has expressed deep gratitude for the peace of mind our planning has provided. We maintain regular contact, checking in on her frequently and staying eager to hear how she’s spending her days. When we last spoke, she was working on a meaningful project—turning Mark’s collection of Jimmy Buffett and Metallica t-shirts into a memory quilt, a touching way to honor his memory while creating something she can treasure.
Case Study #2: How We Helped Clients Achieve Early Retirement
Client Background and Challenges
Charlie and Laura came to us in 2010 seeking comprehensive financial guidance. At the time, they were both in their early 50s, working in demanding positions in the banking industry. They had no children but were dealing with the increasingly common challenge of aging parents requiring more attention and care.
Charlie’s parents were in their early 90s and experiencing progressive health issues that required more frequent assistance. Charlie was seriously considering leaving his career early to become a full-time caregiver for his parents—a significant decision that would impact both his and Laura’s retirement timeline. Laura hoped to retire a few years after Charlie, but they were uncertain whether their savings would support potentially four decades or more of retirement.
Financial Assessment and Planning
Our initial analysis found that Charlie and Laura were in excellent financial shape for retirement planning. Through disciplined savings habits maintained over many years and strong market performance following the recovery from the 2008-2009 financial crisis, they had successfully doubled their net worth. However, they still harbored doubts about whether they had accumulated sufficient assets to support an early retirement that could potentially last forty years or longer—significantly longer than the traditional retirement planning horizon.
We worked extensively with Charlie and Laura to develop a detailed budget that brought clarity to their spending patterns. This process helped distinguish between their essential needs, important wants, and aspirational wishes. We also addressed potential unexpected expenses that many early retirees overlook, including the significant costs of long-term care and healthcare expenses during the years before Medicare eligibility at age 65. Since both were currently covered through employer-sponsored healthcare plans, they would need to secure alternative coverage—potentially for more than a decade—before becoming eligible for Medicare.
Successful Early Retirement Implementation
Both Charlie and Laura successfully retired by 2014, several years ahead of the traditional retirement age.
Since their retirement, we’ve continued to provide ongoing guidance and support across multiple complex financial areas:
- Portfolio Distribution Strategy: We created an appropriate withdrawal strategy that accounts for their specific tax situation and the reality that most of their assets are held in tax-deferred retirement accounts. This requires careful coordination to minimize taxes while ensuring adequate cash flow.
- Social Security Optimization: We’re helping them determine the optimal time to file for Social Security benefits, balancing the trade-offs between claiming early versus delaying for higher lifetime benefits.
- Medicare Planning: We’re guiding them through the complex decisions about which Medicare policy options to select when they become eligible at age 65, including supplemental coverage and prescription drug plans.
Ongoing Tax Optimization
One particularly valuable strategy we’re implementing for Charlie and Laura involves strategic Roth conversions. We’re systematically converting portions of their traditional tax-deferred retirement accounts into Roth IRAs during their early retirement years when they’re in relatively lower tax brackets. This forward-thinking approach serves multiple purposes.
First, it will reduce their required minimum distributions (RMDs) that begin at age 72. Smaller RMDs help them stay in lower tax brackets throughout retirement, reducing their lifetime tax burden. Second, lower RMDs help prevent them from crossing income thresholds that would trigger higher Medicare premiums in their later years—a consideration many retirees overlook until it’s too late. Finally, Roth assets provide tax-free growth and distributions, offering valuable flexibility for future planning.
Charlie and Laura are still relatively young retirees who will likely experience various life changes requiring adjustments to the original plan. However, we’ve positioned them with significant financial flexibility and multiple options for adapting to whatever circumstances arise. We’ll continue to monitor their situation, adjust their plan as opportunities emerge, and ensure they maintain the financial security to enjoy this extended retirement they’ve worked so hard to achieve.
Key Lessons From Our Client Case Studies
These case studies illustrate several important principles that guide our wealth management approach:
- Early Planning Creates Options: Both couples engaged with comprehensive financial planning well before retirement, which gave them time to make adjustments and build the resources necessary for their goals. Starting early creates flexibility and options that aren’t available when you’re already at retirement age.
- Risk Management is Essential: The life insurance we helped Mark and Megan secure proved invaluable when the unexpected happened. Protecting against risks is just as important as growing wealth.
- Plans Must Be Flexible: Life rarely follows a straight path. Whether dealing with the death of a spouse, aging parents, or health issues, the ability to adapt your financial plan to changing circumstances is crucial.
- Tax Planning Matters: Strategic tax planning, including Roth conversions and optimal Social Security claiming strategies, can save hundreds of thousands of dollars over a retirement that may last three or four decades.
- Ongoing Guidance Provides Peace of Mind: Financial planning isn’t a one-time event. Regular reviews and adjustments, especially during major life transitions, ensure that your plan continues to serve your evolving needs.
How Calamita Wealth Management Helps Clients
At Calamita Wealth Management, we’re dedicated to helping you accomplish your unique wealth management goals—whether that’s retiring early like Charlie and Laura, caring for aging parents while securing your own future, navigating unexpected life events like Megan, traveling the world, paying off your mortgage, or leaving a legacy for your children and grandchildren.
Our comprehensive approach to financial planning addresses all aspects of your financial life, including:
- Retirement income planning and Social Security optimization
- Investment management and portfolio construction
- Tax planning and strategic Roth conversions
- Estate planning coordination and legacy planning
- Healthcare and long-term care planning
- Risk management and insurance analysis
- Budget analysis and cash flow planning
No matter what your situation looks like, we’re here to provide clarity and guidance about your financial future. Our case studies demonstrate our commitment to understanding each client’s unique circumstances and developing personalized strategies that address both current needs and long-term goals.
If you have any questions about how we can help you achieve your financial goals, don’t hesitate to schedule an introductory phone call using our online calendar or reach out to us at (704) 276-7325 or todd@calamitawealth.com. We look forward to learning about your situation and discussing how our comprehensive wealth management approach might benefit you and your family.
About Todd Calamita
Todd Calamita is the founder and managing principal of Calamita Wealth Management, an independent, fee-only wealth management company located in Charlotte, NC, serving people locally and across the country, that focuses on providing wealth management solutions to affluent individuals over age 50 and their families. Todd has more than 20 years of experience in the financial services industry and is passionate about helping people have a better life by designing and implementing customized financial plans that bring clarity and confidence.
Todd is a CERTIFIED FINANCIAL PLANNER™ (CFP®) and CERTIFIED DIVORCE FINANCIAL ANALYST® (CDFA®) and holds a Bachelor of Business Administration from Ohio University and a Master of Business Administration from the Weatherhead School of Management at Case Western Reserve University. He has authored a book, Plan Smart: Conquering 10 Common Money Traps, as well as numerous articles on wide-ranging personal finance topics, from taxes to retirement accounts. He has also been featured in a Financial Boot Camp TV series as a volunteer showing people how to make smart smart decisions with their money.
When he’s not working, you can find Todd spending time with his wife, Teresa, and their two sons, Colin and Cameron. He enjoys rock climbing, swimming, and traveling, and he has a black belt in Tang Soo Do, a Korean martial art. To learn more about Todd, connect with him on LinkedIn.
