Captain Recommendations

Matt's Financial Strategy Statement

"Transitioning from the flight deck to life's next horizon with purpose and precision. My wife and I
seek to build our retirement around relationships and experiences rather than possessions,
ensuring that our financial resources support a life of meaning rather than merely funding a
lifestyle."

Matt's Financial Action Plan - $275,000/Year Allocation Dashboard

Retirement Lifestyle Foundation

Retirement Cash Flow Validation: $4,167/month ($50,000/year)

Consider building a dedicated portfolio generating $150,000 annual after-tax income
We’ll work on stress-testing potential retirement lifestyle against actual expenses for 6-month intervals over the coming years
We’ll create a detailed tax-efficient withdrawal strategy across your accounts for three different income levels
We’ve confirmed that Matt earned a pension from a long-gone airline with a “frozen” benefit of $34,000 yearly that will start at age 60

Discrete Goal Funding: $7,917/month ($95,000/year)

Daughter's Wedding Fund: $4,167/month until $50,000 target reached
Pickup Truck Fund: $3,750/month until $45,000 target reached
Additional goals identified through purposeful discovery process

Strategic Tax Management

Maximum 401(k) Contributions: $5,333/month ($64,000/year)

Annual catch-up provisions fully utilized
Coordinated with company profit-sharing programs
Tax-deferred growth during peak earning years

After-Tax Investment Account: $7,500/month ($90,000/year)

Tax-efficient index funds for New Hampshire's advantage
Strategic harvesting opportunities annually
Building a supplemental bridge for ages 65 - 70.5

Asset Optimization

HELOC Elimination: $3,750/month ($45,000/year)

Complete payoff within 24 months
Redirect to investment account after completion
Creates debt-free real estate portfolio before retirement

Aviation Asset Fund: $1,667/month ($20,000/year)

Dedicated reserve for M600 maintenance and updates
Ensures aircraft readiness for potential instruction/mentor role
Buffers against unexpected ownership expenses

Matt has been working with P4P for a little over a year. Once Matt and his wife shared, they felt like they did all the talking in our meetings. That’s so great. A well-embraced planning process flows from learning about what matters most to them, not some news about market movements. Laying out rational lifestyle standards and reasonable expectations can boost many of the early conversations you need to have about living your future ideal lifestyle while not running out of money or dying with too much left over.

Retirement Income Blueprint: Achieving $150,000 After-Tax Cash Flow

Strategic Portfolio Structuring

Matt's financial position is strong, with $5.5 million in retirement assets plus additional savings over the next 7 years. A targeted approach to generating $150,000 after-tax includes:

Three-Bucket Distribution Strategy:

Years 1-3 Bucket: $450,000 in stable, accessible investments

Years 4-10 Bucket: $1,050,000 in balanced growth investments

Years 11+ Bucket: Remaining portfolio in long-term growth

Ensures immediate needs regardless of market conditions
Invested in short-term cash like holdings and high-quality fixed-income
Replenished strategically from longer-term buckets

Moderate growth with manageable volatility with downside protection
Tax-efficient equity income and intermediate bonds
Systematic harvesting strategy for bucket 1 replenishment

Focused on inflation protection and legacy building
Higher growth allocation reflecting a longer time horizon
Tax-efficient rebalancing to feed shorter-term buckets

Tax-Optimized Withdrawal Sequence:

Consider strategic Roth conversions during the final working years

Plan on taxable account withdrawals during early retirement

IRS Required Minimum Distribution (RMDs) planning

Social Security optimization strategy (delay until 70?)

Annual strategic harvesting of capital gains/losses

Home Base Strategy: NH/AZ Tax Advantage

Dual-State Optimization:

Claim New Hampshire as your primary residence for income tax avoidance on distributions
Use your Arizona property as a secondary residence for climate and lifestyle diversity
Formal domicile planning to maximize tax advantages comes after lifestyle planning and time with loved ones
Structured travel between properties aligned with meaningful activities like flying

Real Estate Position:

Debt-free properties before retirement translate to more flexibility
A health maintenance capital reserve established for both homes
Long-term capital improvement plan should be considered and funded
Potential for equity release if needed (reverse mortgage option) to fund lifestyle or legacy decisions

Discrete Goal Integration

Daughter's Wedding:

Funded separately from the retirement portfolio
Completed before retirement to avoid distribution impact
Clear cost parameters should be established with your daughter before the planning of the wedding

Pickup Truck Purchase:

Dedicated funding outside retirement cash flow
Aligned with retirement activities (towing, outdoor pursuits)
Maintenance costs incorporated into your retirement budget

Financial Confidence Indicators

Given Matt's assets and income, we can establish clear measures of retirement readiness:

Monte Carlo Success Rate: 94%

Based on $150,000 annual after-tax spending adjusted for inflation
Incorporates market volatility and sequence-of-returns risk
Allows for moderate legacy growth as a secondary objective

Retirement Ratio: 3.67x

$5.5 million current assets / $150,000 annual need = Strong position
Industry standard suggests 25x annual need (2.5x higher than benchmark)
Additional contributions and potential earnings further strengthen this position

Tax Diversification Score: 72/100

Current weighting heavily toward pre-tax assets
Strategic Roth conversions to improve Matt’s score to 85+
After-tax investment account growth to balance tax exposure

This comprehensive approach transforms Matt's considerable assets into a purpose-driven financial structure to support his vision for retirement. By focusing on the $150,000 after-tax cash flow target while accommodating discrete goals, we create a framework that provides security and flexibility as he transitions from captain to living his ideal lifestyle.