Financial Independence Transition
You Have Built the Wealth.
Now the Decisions Need to Work Together.
Executives and senior professionals often reach this stage with multiple accounts, tax considerations, employer benefits, investment decisions, insurance needs, and several possible retirement dates. The issue is rarely a lack of assets. The issue is coordinating the transition.
Designed for professionals approaching retirement, a career change, or the point where work may become optional.
The Challenge
The Retirement Number Is Not the Retirement Plan
A retirement projection may show that retirement appears possible. It does not automatically show:
Two households can have the same net worth, the same retirement age, and entirely different levels of flexibility. The difference is often the structure.
Household A
High net worth, limited flexibility
- High net worth
- Limited accessible liquidity
- Large pre-tax balance
- Concentrated company stock
- Uncoordinated income sources
Household B
Similar net worth, coordinated structure
- Similar net worth
- Defined liquidity reserves
- Coordinated tax strategy
- Diversified income sources
- Clear withdrawal sequence
Financial independence is not simply a number.
It is a coordinated financial structure designed to support choices.
Questions That Surface
The Questions Change After You Have Built Wealth
The questions that matter at this stage are less about whether you have accumulated enough and more about how the pieces fit together.
Can I actually retire?
When does work become optional?
How will I replace my paycheck?
What should I do with company stock?
How should RSUs or stock options be handled before retirement?
When should deferred compensation begin?
Are there tax opportunities before retirement?
Which accounts should fund which years?
How much liquidity do I need?
What decisions become harder to reverse once I leave work?
These questions rarely exist independently. A decision about retirement timing may affect taxes, healthcare, investments, equity compensation, liquidity, and estate planning at the same time. Understanding those connections is where a coordinated retirement strategy may create flexibility that a retirement calculator alone cannot.
The Process
The New Horizons Financial Independence Transition
The Financial Independence Transition is a structured planning and wealth-management relationship designed for professionals whose financial lives have become more complex as they approach retirement or another major career transition.
The initial onboarding process generally takes 60 to 90 days after the required information is received. The planning sequence is consistent, while the meeting schedule is customized. Some clients prefer two extended working sessions. Others prefer a series of shorter meetings every other week. The schedule is adapted based on complexity and availability.
Cash Flow and Debt Planning
Map where money comes from, where it goes, how debt affects flexibility, and how available cash flow can be directed toward future priorities.
Areas may include:
Deliverable:
- Income, taxes, and lifestyle spending
- Debt obligations and savings
- Near-term goals
- The destination of the next available dollar
Annual Cash Flow Planning Report
A visual analysis comparing the current cash-flow structure with the recommended allocation of income, spending, debt, and savings.
Why it matters: Debt eventually ends. Lifestyle spending usually does not. Separating the two helps show what future flexibility may become available.
Tax Planning
Review the current tax position and identify decisions that may deserve attention before or during retirement.
- Adjusted gross income and taxable income
- Marginal tax bracket and effective tax rate
- Withholding and bracket capacity
- Roth-conversion scenarios
- Capital-gain considerations
- Retirement-income timing and deferred-compensation overlap
Visual Tax Planning Report
A visual review of the client's current tax position, potential planning opportunities, watch items, and actions that may require coordination with a tax professional.
Why it matters: Some of the most important retirement-tax decisions need to happen before retirement begins.
Note: New Horizons does not prepare tax returns. Tax-sensitive strategies should be coordinated with a qualified tax professional. For Minnesota-specific tax considerations, see our Minnesota retirement tax guide and our RMD and Roth conversion planning resource.
Investment and Liquidity Planning
Assign each pool of money a defined purpose based on timing, spending needs, liquidity, and risk.
Deliverable: Five-Bucket Investment Proposal
Near-Term Cash
and Spending
Bonds or CDs
for Stability
Income-Oriented
or Tax-Managed
Core Long-Term
Growth
Aggressive
Long-Term Growth
The goal is not to place every dollar into one portfolio with one job. The goal is to give each portion of the portfolio a purpose. This structure is designed to align investment decisions with spending timelines and liquidity needs. Actual allocations depend on individual circumstances and may involve trade-offs between growth potential and stability.
Insurance Planning
Evaluate whether the current protection structure supports the financial plan.
- Family and income protection
- Life and disability insurance
- Long-term care considerations
- Healthcare transition planning
- Existing coverage and potential gaps
- Missing documents and follow-up questions
Protection Strategy Map
A visual review using indicator markers to show where coverage appears aligned, where questions exist, and where gaps may need attention.
Insurance is not the plan. Insurance protects the plan. Not every identified gap requires the purchase of a product. Some gaps may be addressed through existing resources, beneficiary changes, or other planning adjustments.
Estate Coordination Review
Review beneficiary designations and determine the appropriate next planning step.
- Beneficiary review and inconsistency identification
- Basic online will or trust questionnaire
- Referral to an estate-planning attorney
- Coordination of planning questions
Beneficiary and Estate Coordination Review
A documented review of beneficiary designations and a recommendation for the next estate-planning step.
Note: New Horizons does not draft legal documents or provide legal advice.
Connecting Analysis
Financial Independence Age Analysis
The five planning areas are connected through an eMoney comparison showing the age at which financial independence appears possible under the current trajectory, the age indicated under the recommended planning scenario, the assumptions used, the planning changes reflected, the decisions with the greatest effect, and the next implementation actions.
Current Path
Existing structure, no coordinated changes
- Existing savings and account structure
- Current investment allocation
- Current income and tax assumptions
- Current retirement timing
Recommended Path
Proposed coordinated changes
- Proposed changes to savings and taxes
- Adjusted liquidity and investment structure
- Updated protection and timing considerations
- Coordinated implementation actions
Financial projections are hypothetical illustrations based on assumptions and are not guarantees of future results or retirement timing. The analysis does not represent a guaranteed improvement in retirement age. Actual outcomes depend on market conditions, tax law changes, spending decisions, and other variables that cannot be predicted with certainty.
What You Receive
Documented Planning Outputs, Not Just Conversations
Each step produces a written deliverable that documents the analysis, the recommendations, and the reasoning behind them. These are planning tools designed to support ongoing decisions, not one-time reports that sit in a folder.
Annual Cash Flow Planning Report
A visual analysis of income, taxes, lifestyle spending, debt, savings, and future cash-flow priorities.
Visual Tax Planning Report
A review of current tax positioning, bracket capacity, planning opportunities, watch items, and CPA coordination points.
Five-Bucket Investment Proposal
A documented investment and liquidity structure assigning a job and time horizon to each pool of money.
Protection Strategy Map
A visual review of family, income, asset, long-term-care, and healthcare protection using indicator markers.
Beneficiary and Estate Coordination Review
A beneficiary review and documented recommendation for the next estate-planning step.
Financial Independence Age Analysis
An eMoney comparison of the current path and recommended planning scenario using hypothetical assumptions.
How Close Are You to Financial Independence?
The Financial Independence Assessment can help identify the major areas that may affect when work becomes optional and which decisions may deserve closer attention.
The assessment is educational and is not a substitute for personalized financial advice.
After Onboarding
The Plan Is Not Finished When the Recommendations Are Presented
Implementation is where planning becomes useful. After onboarding, the relationship moves into ongoing planning and wealth management.
State of the Union Meeting
The first quarterly review after onboarding.
- . Review what has been implemented
- . Identify incomplete action items
- . Show the updated strategy in eMoney
- . Explain the effect on the broader plan
- . Establish ongoing priorities
Customized Quarterly Planning Reviews
Meetings are based on the client's current priorities rather than a generic investment-performance presentation. The agenda reflects what matters now, whether that is a tax decision, a benefits election, a liquidity question, or a life event that changes the plan.
Ongoing Access
Clients may reach out when a planning question or important decision arises. Available channels include:
Professional Coordination
With client authorization, New Horizons can communicate directly with CPAs, attorneys, insurance specialists, and other professionals involved in the client's financial life. Each professional remains responsible for advice within their own area of expertise.
Who It Is For
Who the Financial Independence Transition Is Designed For
This process may be relevant if you:
-
.Are within five to ten years of retirement
-
.Are considering leaving full-time work
-
.Want to know when work may become optional
-
.Have several retirement or investment accounts
-
.Receive RSUs, stock options, or deferred compensation
-
.Hold a meaningful amount of company stock
-
.Have a pension or complex employer benefits
-
.Are evaluating a severance or restructuring
-
.Need to coordinate taxes, investments, income, insurance, and estate decisions
-
.Want an ongoing relationship rather than a one-time recommendation
This process may not be the right fit if you:
-
.Only want a stock recommendation
-
.Are looking for short-term market predictions
-
.Want a one-time generic retirement calculation
-
.Are unwilling to provide the information needed for planning
-
.Do not want an ongoing advisory relationship
These are fit considerations, not judgments. Different situations call for different approaches.
Illustrative Example
A Retirement Number Was Not the Real Problem
A hypothetical executive couple in their late 50s believed their main question was whether they had accumulated enough to retire. They had several million dollars across retirement accounts, brokerage assets, company stock, deferred compensation, and cash.
The initial assumption was: "We need to know whether the number is enough."
The planning process showed that the more important issue was how the pieces interacted. The decisions included:
- When deferred compensation would begin
- How much company stock should remain
- Which assets would provide near-term income
- Whether tax opportunities existed before required distributions
- How healthcare would be funded before Medicare
- Which decisions needed CPA and attorney coordination
The lesson was not that the couple simply needed more assets. They needed a coordinated transition structure.
The amount matters. The structure determines how the amount can be used.
This example is hypothetical and composite. It does not represent any specific client, and it is not a guarantee of any outcome. Individual results vary based on personal circumstances, market conditions, and planning decisions.
Pricing
How the Relationship Is Priced
Planning fees begin at $200 per month and are based on the complexity and scope of the relationship. Many higher-complexity relationships are approximately $300 per month or more. Investment-management fees, when applicable, are disclosed separately before engagement.
Investment-management fees are generally 0.5% of assets under management, billed quarterly. The all-in fee a client pays may be slightly higher depending on internal portfolio costs such as mutual fund or ETF expense ratios. These costs are disclosed before engagement.
Complexity may reflect:
Integrated Planning and Investment Management
New Horizons generally recommends combining financial planning and investment management when appropriate. This allows the firm to help implement, monitor, and adjust the strategy directly. Integrated relationships may allow for more coordinated execution across tax planning, rebalancing, withdrawal sequencing, and ongoing adjustments.
Planning-Only Relationships
Planning-only relationships may be available when assets remain elsewhere. Because New Horizons is not implementing or continuously monitoring outside accounts, the scope, fee, and service structure are established separately. Planning-only clients receive the same planning deliverables but manage implementation independently or through another professional.
FAQ
Frequently Asked Questions
What is financial independence planning?
Financial independence planning evaluates whether a person's assets, income sources, tax structure, liquidity, insurance, and future spending can support the point at which work becomes optional.
How is this different from a retirement plan?
A retirement plan may focus primarily on whether retirement appears mathematically possible. The Financial Independence Transition also addresses the sequence of decisions involving cash flow, taxes, investments, benefits, protection, estate coordination, and implementation.
How long does onboarding take?
Most onboarding engagements are completed within 60 to 90 days after New Horizons receives the required information.
Do I need to be fully retired?
No. The process is often most useful several years before retirement or another major career transition.
Do you work with RSUs and stock options?
New Horizons works with professionals whose planning may involve RSUs, stock options, ESPP shares, company stock, deferred compensation, and related tax and liquidity decisions.
Do you prepare tax returns?
No. New Horizons identifies tax-planning considerations and may coordinate with the client's qualified tax professional. For more on how Minnesota taxes retirement income, see our Minnesota retirement tax guide.
Do you draft wills or trusts?
No. New Horizons reviews beneficiary and estate-planning considerations and may recommend a basic online process or referral to an estate-planning attorney.
Do I have to move my investments?
Planning-only relationships may be available, although integrated planning and investment management generally allows New Horizons to help implement and monitor the recommended strategy more directly.
How much does the relationship cost?
Planning fees begin at $200 per month and increase based on complexity and scope. Investment-management fees are generally 0.5% of assets under management, billed quarterly. The all-in fee may be slightly higher depending on internal portfolio costs, which are disclosed before engagement.
Can I cancel?
Clients may end the planning relationship with seven days' notice. Additional terms are governed by the signed agreement.
Is the Financial Independence Age Analysis guaranteed?
No. The analysis uses hypothetical projections and assumptions. It is not a guarantee of future results or retirement timing. Actual outcomes depend on market conditions, tax law, spending decisions, and other variables.
You May Already Have Enough Wealth.
The Next Question Is Whether It Is Structured to Support the Life You Want.
Start by identifying the major areas that may affect when work becomes optional and which decisions may deserve closer attention.
Or call (763) 401-1035
Email info@newhorizonsbfs.com
New Horizons
Boutique Financial Services LLC
8647 Eagle Point Blvd. Suite #1
Lake Elmo, Minnesota 55042
(763) 401-1035
info@newhorizonsbfs.com
Links
Securities offered through J.W. Cole Financial, Inc. (JWC), Member FINRA/SIPC. Advisory services offered through J.W. Cole Advisors, Inc. (JWCA). New Horizons Boutique Financial Services LLC and JWC/JWCA are unaffiliated entities. This material is provided for educational and informational purposes only and is not intended as individualized investment, tax, or legal advice. J.W. Cole Financial representatives do not accept account orders or instructions by email, voicemail, fax, or other alternative communication methods.
Financial projections are hypothetical illustrations based on assumptions and are not guarantees of future results. Tax-sensitive strategies should be coordinated with a qualified tax professional. New Horizons does not provide legal advice or draft legal documents.