Ready For Retirement
Ready For Retirement
$10M+ Net Worth Case Study: What to Do First
What if the real financial risk isn’t running out of money, but running out of time to use it well? In this episode, listen as James and Ari unpack a $14 million case study with concentrated inherited stock, sizable retirement accounts, and big questions about spending, portfolio risk, taxes, and legacy.
See how a single allocation decision can swing outcomes from an eight-figure estate to running out of money by age 75. Learn why $25,000 a month versus $50,000 a month can change the end balance by tens of millions, and how to fund first-class experiences without sacrificing long-term security.
Get practical about investment mix and sequence risk, including why a preservation-tilted portfolio can quietly erode optionality over decades. Then map a smarter spending design: a steady baseline plus time-boxed “experience funds” for travel and family, so you can say yes when health and energy are highest.
What you’ll learn (high-net-worth planning focus):
- Investment strategy and portfolio allocation: balancing growth and preservation, managing sequence risk, and diversifying concentrated stock.
- Tax strategy: timing Roth conversions, harvesting gains in low-rate windows, using QCDs to blunt RMDs, and giving appreciated stock through donor-advised funds.
- Estate planning: moving from revocable trusts to SLATs and grantor trusts, plus the deeper work of intent, values, and right-sized inheritances.
- Spending plan design: building a lifestyle-first plan that funds experiences today and keeps long-term flexibility.
You’ll also hear updated context on how many Americans actually cross eight figures, why common “ultra-high-net-worth” stats surprise most people, and how to turn a windfall — inheritance, business sale, or concentrated equity — into a resilient, purpose-driven plan.
If the goal is money that reflects your purpose, not your fears, this conversation gives you a clear path to act with confidence.
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The statements provided are from individuals who are not clients of Root Financial Partners, LLC. These individuals were not compensated for their comments, and their views do not necessarily reflect those of Root Financial Partners, LLC. The information shared is for informational purposes only and should not be considered a recommendation or testimonial regarding advisory services.
Advisory services are offered through Root Financial Partners, LLC, an SEC-registered investment adviser. This content is intended for informational and educational purposes only and should not be considered personalized investment, tax, or legal advice. Viewing this content does not create an advisory relationship. We do not provide tax preparation or legal services. Always consult an investment, tax or legal professional regarding your specific situation.
The strategies, case studies, and examples discussed may not be suitable for everyone. They are hypothetical and for illustrative and educational purposes only. They do not reflect actual client results and are not guarantees of future performance. All investments involve risk, including the potential loss of principal.
Comments reflect the views of individual users and do not necessarily represent the views of Root Financial. They are not verified, may not be accurate, and should not be considered testimonials or endorsements
Participation in the Retirement Planning Academy or Early Retirement Academy does not create an advisory relationship with Root Financial. These programs are educational in nature and are not a substitute for personalized financial advice. Advisory services are offered only under a written
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How much conservative money should I have? Should I have a 60-40 portfolio?
SPEAKER_00:Should I invest in all dividend paying stocks so I can live just on the dividend income going forward?
SPEAKER_01:Should I worry about Roth conversions? Because I see a lot of wealthy people. I'm in these friend groups and they're always talking about them, but I know I also have a lot of money I inherited because I'm part of that sperm and egg club. So does that apply?
SPEAKER_00:How do I use this money to help support my family, my children, my grandchildren? How do I pass this on most effectively?
SPEAKER_01:Do I need a basic trust or are there more complex things that I need to look out for because of how much money I have and might really have?
SPEAKER_00:What tax strategies are most important when I have more than$10 million in my portfolio versus when I have less?
SPEAKER_01:How many people do you think have a net worth north of$10 million in the United States?
SPEAKER_00:10 million is a lot, and I think it's a low percentage, but there's a lot of people in America. I'm gonna say$25,000.
SPEAKER_01:$25,000 is a good guess, but according to Fidelity, you're off by about$100,000 because you can see Fidelity says here in 2023, there were$147,000 individuals that were considered ultra high net worth. Now, what is ultra high net worth? Well, Fidelity says it's someone who has 30 million or more in investable assets.
SPEAKER_00:That is a lot more than I would have thought. And today's show this is a collaboration between myself, James Cannol, Ari Taubleb. Ari's the chief growth officer at Root Financial. I'm the chief executive officer at Root Financial. And today we're gonna go through a case study that's not too dissimilar from maybe what Fidelity is referencing there, from what we see in a lot of our work at Root, working with clients. Ari, what's the plan for today? What's the case study that we're gonna look at today?
SPEAKER_01:We're looking at a sample case study of a couple that has north of$10 million as a net worth. And it's gonna be a fun one. I do want to say, James, I imagine a lot of people who have just heard this intro are thinking something like this comment here from Ben Virgil, 1573, who says, and this is from a previous video, thank you, Ari. I don't have anything remotely close to 20 million, but I still got benefit from this video. Congratulations to those who have achieved this, although it is not my goal. So, this video is a sample case study of many clients who reach out to Root seeking guidance on what the heck do I do. Now, it's not necessarily, oh my gosh, I'm worried I'm gonna run out of money. It's oh my gosh, what if I don't do as good as I possibly can and I work so hard for this? I want this to actually reflect what I care most about. So this is the case study that we are looking at today. You can see a total net worth of$14 million, and we're gonna have some fun.
SPEAKER_00:And all right, while you're doing this, the reality is there's so many different things. There's investment strategies, tax strategies, insurance strategies, estate strategies. But today we're gonna talk about what's that first thing that you should be looking at. If this is you, what are the first things that you should be looking at so that you know what to look at when it comes to investment, tax, other types of strategies? But let's dive into the details and we'll start looking through that.
SPEAKER_01:We want to get to the details as badly as you guys do. So we're gonna look at tax stuff, investment stuff. It's gonna be a blast, but we are all about being transparent here at Root. And here is a comment from Bum Hip who says, You're doing the Lord's work here. I mean, who is more underserved or vulnerable than the top 0.05% of asset holders? James, thoughts there?
SPEAKER_00:My thoughts are uh yes, very much tongue-in-cheek. And we have tons of content from people in many different phases of life. So if this does not apply to you, you don't have to watch. I think there's gonna be a lot of curiosity here. I think there's gonna be a lot of just fun things to look at here. But most importantly, there are core strategies that do apply to everyone, regardless of if they have 20 million saved, 20,000 saved. So hopefully there's some themes that you can pull out regardless of where you stand there.
SPEAKER_01:Well said. So let's learn about this couple because this is what we're talking about today. So you can see this couple, you can see we're just putting some names here. Retiree, spouse, and child. We got real creative there. And you can see retiree has a 401k with$2.4 million. Spouse also invested well:$2.2 million,$250,000 in a Roth IRA,$50,000 in an HSA. And then, guys, you guys know my jokes, many of them are bad, and I apologize in advance. But this inherited stock we sometimes also call the Lucky Sperm and Egg Club. I know, I know. Get mad at me later. You can tell me in the comments. But you can see they've inherited$8.5 million, and those are actually just two positions. They inherited Apple and Amazon. So they are now wondering how much can we spend?
SPEAKER_00:And Ari, real quick, I'm gonna step in here. If you're looking at that and say, I don't have any inherited accounts, this could be anything. Maybe you just sold a business and you have some proceeds from that. Maybe you just sold a property or a few properties and you have some proceeds from that. Maybe the numbers you have are the same as that, maybe they're quite different. The reality is it's the it's the way that we want to talk through this that's most important, not the actual numbers themselves.
SPEAKER_01:Beautifully said. You sell a business and you have, let's call it, eight and a half million dollars, you're really in the same spot as if you inherited stock. The difference is the emotional component. For example, my dad, he tells me almost every day monster stock has done so well. If I were to just sell monster stock, I might feel maybe I've lost a little bit of my dad. Now we have financial conversations, but many of you will share with us transparently, I just can't sell that stock. That that reminds me of my mom or my father, or other people go, I have no concerns. They want me to do what makes most sense for my situation. So let's take a look and see how much this couple can realistically spend. And where we would start with this, if you were a client at root, is how much money is too much to pass away with? Because right now they're on track for$70 million. Now, many of you might be going, that's not enough for me. But I'd imagine most of you would go, no, that$70 million looks like a lot of regret. It looks like a lot of why didn't I spend more on my children? Why didn't I take bigger trips when I had my energy and my health? Why didn't I retire earlier? So, James, let's explore a little bit about how much they can spend.
SPEAKER_00:Let's do that. And Ari, this number, that 70 million, a lot of people probably watching are saying, that's just absurd. That's not me. I'm gonna have nowhere close to that. You would be surprised how many people are completely surprised by their own situation, where typically, if you're that individual that maybe sold a business and maybe you have this money, you probably weren't living with loads and loads and loads of free cash flow all the way up until the point of that sale. You may have been living within your means, reinvesting back into the business, not having a huge abundance of cash flow while working in the business. But once you sell, now that really opens up a completely different reality for you going forward. Or maybe you did inherit money and you always lived a lower middle class, a middle class lifestyle. Well, now this opens up a completely different lifestyle for you. And it's not all just about spending and how much can you buy and how much can you accumulate, but what it is about is what does this actually represent to you? What could be possible with this money? Spending, giving, family support, experiences. And I think that's really the question people want to know. And that's why we're going through this right now.
SPEAKER_01:$25,000 a month is a lot of money, especially for someone who, as you can see, they saved and invested well. They have about four and a half million dollars until the inheritance came. And once again, replace inheritance with, you know, uh selling a business or just some other proceeds. And you can see here, if we were to double this from$25,000 a month to$50,000 a month, guys, that's$600,000 a year after taxes adjusted for inflation,$33 million fewer dollars. That that's some number, James. That is a big number.
SPEAKER_00:And I think that this is where uh, you know, the first question always is I think, am I gonna be okay? And so one thing I like to talk to clients about is like, what's that okay number? That okay number is probably something a whole lot less than$50,000 per month of spending. But once you know you're gonna be okay, and how much do you need to spend to ensure that you're gonna be taken care of the rest of your life, your spouse is gonna be taken care of for the rest of their life. Now start to think about how can we be creative with this? How can we be imaginative with this? How can we understand that this position that we're in with this inheritance, with selling a business, with being part of a company whose stock skyrocketed and now you have a significant concentrated stock position there? Don't just look at the numbers, look at what can those numbers do for you. And that's part of the fun here is imagining. What good could you do? What adventure could you create? What purpose could you create with this amount of money?
SPEAKER_01:A lot of people will tell us, I'm worried to screw up. Once again, I know I'm gonna be okay, but I'm worried I'm gonna screw something up. And investing often comes up. So before we increase the expend the spending more, because you can see they're still on track for$35 million, what if they don't invest well or just would be more comfortable with a very preservation-esque allocation? How would that impact their portfolio? Well, we're gonna see right now. So all I did was shift their investment mix to something that we call preservation, which you can see has them now running out of money by age 75.
SPEAKER_00:One of the things I think is important here already to look at is the fact that all these graphs and projections and this looks awesome, that all comes down to assumptions that we're making. What growth rate are you getting? How much are you spending? What's inflation gonna be? And a big part of why I'm glad you're showing this is none of this is guaranteed. There is no guarantee that your specific investment mix is gonna return a specific rate of return. There's no guarantee that inflation is gonna stay under a certain rate of return. So a big part of this is how much could you spend? What could life look like, assuming things go the way we'd like them to go, but then also stress testing this of what if you're not getting the returns that we're planning for, or that historically you would have received, how does that impact this? Or how does choosing the right investment mix impact what the future can look like? So huge swings here with seemingly not that significant of changes, but these changes are really significant, especially at this asset level that we're looking at here.
SPEAKER_01:What blows my mind is that you can have millions and millions of dollars. Many of you know I grew up in Malibu, California. James went to Pepperdine in Malibu, California, and I grew up around a lot of characters. That's me being nice, okay, guys. And some of these characters, they want to spend 30,000, 40,000, 50,000 a month. Now, a lot of these characters are extremely nice people, and I'm being coy here, but the fact that you could have tens of millions of dollars and still worry about running out of money, many of you go, there's no way they think that. And it's true, they do. And so you can see here, you click one button and it looks like you have 70 million, and you click one button and you're running out of money. So what we really want to make sure you understand is that you need to plan for your retirement, nobody else's. So the assumptions in here are key. One thing that we want to make sure you're always thinking about if you're in a similar situation, is this$50,000 a month number. This is assuming that's every single month in retirement. James, do we find most of our clients are spending the same amount? Does it change?
SPEAKER_00:Not just for our clients, but I think for retirees and people as a whole, uh, it is not the exact same every single month throughout retirement.
SPEAKER_01:Definitely not. So this$50,000 a month, obviously we're dreaming here. We want to see, okay, how much is too much. But we can also separate some of these things. So for example, assume$25,000 a month, they go, oh my gosh,$25,000 a month. We could do everything we we wanted in more. That that is a really comfortable retirement. Well, now, once again, they're on track for potentially$70 million, the beauty of compound interest you can see on that graph there. But maybe they want to travel more, or maybe they want to give more. And we're gonna do another episode going into more details on giving and tax strategy and estate planning. Today is really showing you how much can you spend with the assets that you have? And let's just, I'm gonna let you, James, throw out a number here. Annual travel luxuriously, first class, take in the family, friends. How much do you think that might be on an annual basis? Let's say 150,000. 150,000. You got it. So 150,000. So that's 150,000. Let's see how that impacts the plan.
SPEAKER_00:Ari, how long are they traveling for? Is this traveling every single year for the rest of their life or is this for the first number of years in retirement?
SPEAKER_01:Good question. So they are putting travel here for the first 30 years. Now I say first 30 years, James, because they're retiring early. So if they retire at 55 and they live till let's say 85, well, that then they spend 30,000 every single year. But for many people, this initial amount of 30 years, that that's just not realistic. So we could switch this to 10 years or 15 years. That way it's accurately reflected in your plan. They are just saying, hey, what if we want to travel every single year, if we have the health to do it? And you can see here, I mean, that's a large number. That's 11 million fewer dollars, but obviously they're still in a comfortable position.
SPEAKER_00:And as we look at this, I think the theme here is for me at least, people are shocked at what once they've accumulated wealth, once they have it, the amount of compound growth that will continue to take that number to most people, the fear, and this is normal, this is how we're hardwired, is to say, what if I run out of money? What if this doesn't last to me? To us, yes, we're concerned about that, of course, for our clients. We want to put plans in place to make sure that doesn't happen. But equally, how do we prevent the fear of regret or the risk of regret of what happens when this individual doesn't do all the things they would have wanted to do? They say no to the things that would have brought amazing memories and experiences to them, their family, their friends. They say no to all that because they don't have the plan to feel fully confident in their ability to do so. And they wake up one day when they're 85, or they wake up one day when they're 87 and they say, Oh my gosh, I now have 60 million dollars in my portfolio. There's only so much I can do as an 86-year-old, as an 87-year-old with this money. Sure, I've got some healthcare expenses, but man, I wish I could have spent this money in my 50s, in my 60s, in my 70s to do the things I no longer have the ability to do. And so when we say dream a little bit, it's not just kind of pie in the sky, everything's gonna be rosy and good. It's it's truly what can life look like? Let's be imaginative. Because if we're not, there might come a day when you really regret not doing some of the things that you could have done.
SPEAKER_01:I think we should guess what's in people's heads right now, James. So let's go back and forth and we're gonna do just rapid fire question style. I'll start, and I want you guys to let us know in the comments if this is how you're feeling. So I'll start. If I'm this person and I'm hearing everything I've heard so far, one question in my head is how much conservative money should I have? Should I have a 60-40 portfolio?
SPEAKER_00:Should I invest in all dividend paying stock so I can live just on the dividend income going forward?
SPEAKER_01:Should I worry about Roth conversions? Because I see a lot of wealthy people. I'm in these friend groups and they're always talking about them, but I know I also have a lot of money I inherited because I'm part of that sperm and egg club. So does that apply?
SPEAKER_00:How do I use this money to help support my family, my children, my grandchildren? How do I pass this on most effectively?
SPEAKER_01:Do I need a basic trust or are there more complex things that I need to look out for because of how much money I have and might really have?
SPEAKER_00:What tax strategies are most important when I have more than$10 million in my portfolio versus when I have less? So in this video, we looked at a very high-level case study of what you can look to spend, what you can do with this level of wealth. If you enjoyed this, make sure you subscribe because in the coming weeks, Ari and I are going to do case studies that dive more into the details, more into the tax strategies, more into the investment strategies, more into the nuts and bolts of things you can do to enhance this money, to enhance your situation once you've gotten to this point. If you're in this situation and you're looking for an advisor to actually help you implement some of these strategies, reach out to us here at Root. We have a private wealth team that does this all day, every day. Rootfinancial.com is our website. There's a link to it in the show notes. Reach out to us to see if there might be a good fit to work together. But once again, as we wrap up, make sure that you're subscribed because in the upcoming weeks, there's gonna be a lot more videos just like this diving into the details of what you can do to optimize your situation going forward.
SPEAKER_01:See you guys next time.
