You’ve spent your whole life saving. But what happens when you’re finally ready to retire? How do you take everything you’ve built and turn it into a life you actually want to live?
That’s the question we help answer every day at Root Financial. And over the years, we’ve developed a proven system to help people navigate that transition with clarity. It’s called the Sequoia System—a 7-step framework we use with clients across the country to make sure no stone is left unturned. And today, we’re going to walk you through it.
Whether you’re a Root client or not, this system can help you organize your finances and feel more confident heading into retirement.
Step 1: Define Your Vision
A strong financial plan doesn’t start with money—it starts with life. We begin by asking: What does a life well-lived look like to you? Imagine you’re 90, looking back. What would make you proud?
Maybe it’s travel. More time with family. Meaningful work. Creative hobbies. Giving back. Everyone’s vision is different, but defining it helps ensure your money supports the things that matter most.
This step is deeply personal. We encourage you to journal, talk with loved ones, and take your time reflecting. Because when your financial decisions are rooted in your personal vision, everything else becomes clearer.
Step 2: Know What It Costs
OOnce you know the life you want, it’s time to put numbers to it. Retirement isn’t just about stopping work—it’s about continuing life, just in a new way. We use two methods to estimate what that life will cost:
- Bottom-up: Start with a blank spreadsheet and list every monthly and annual expense—essentials (like housing and groceries) and lifestyle (like travel and entertainment).
- Top-down: Look at your current take-home income, subtract expenses that go away in retirement (like your mortgage or retirement savings), and adjust for new goals.
A great retirement plan doesn’t just keep the lights on—it funds a life that’s rich in experiences and meaning. We help clients price out everything from dream trips to grandkids’ college savings, so they know exactly what they’re working toward.
Step 3: Build Your Cash Flow Plan
Once you’ve mapped out what you’ll spend, the next question is: Where will the money come from?
- Social Security
- Pensions
- Rental income
- Inheritance
- Portfolio withdrawals
We model how these sources will flow into your plan year-by-year. This allows us to stress test your plan and ensure you’re not relying too heavily on one source.
For example, if there’s a gap between retirement and when Social Security kicks in, we strategize how to draw from investments or other sources to fill that gap in the most tax-efficient way.
Cash flow clarity also helps reduce anxiety. Knowing you have a predictable plan gives you the freedom to enjoy retirement, not stress about it.
Step 4: Align Your Investments
Your investment strategy should be based on your income needs, not on what the latest headlines suggest. That’s why we tailor portfolios based on each client’s specific plan.
If your guaranteed income covers most expenses, you may be able to invest more aggressively. If you need more from your portfolio, we take a more balanced or conservative approach.
We also create “Root Reserves”—a stable portion of the portfolio that’s available when markets dip, so you’re never forced to sell stocks at a loss.
Step 5: Plan for Taxes Strategically
Now that your spending and investing plan is in place, it’s time to look at taxes. Smart tax strategies can increase the longevity of your portfolio and help you keep more of what you’ve earned.
We help clients:
- Strategically convert pre-tax dollars to Roth IRAs during low-income years
- Use tax gain harvesting in brokerage accounts (sometimes paying 0% in capital gains!)
- Align income to qualify for healthcare subsidies
- Optimize charitable giving with donor-advised funds or qualified charitable distributions
- Place the right assets in the right accounts to minimize tax drag
Tax planning isn’t about loopholes—it’s about intentionality. And when done well, it supports the rest of your plan without sacrificing your goals.
Step 6: Review Insurance Coverage
The right insurance coverage protects your plan from life’s uncertainties. And as you approach retirement, your needs evolve.
We help clients assess:
- Do you still need life or disability insurance?
- Should you consider long-term care insurance?
- What are your Medicare options and when should you enroll?
- Are your homeowners, auto, and umbrella policies sufficient to protect your assets?
We don’t sell insurance, but we do offer clear, objective guidance to help you make the right decisions.
Step 7: Get Your Estate Plan in Order
Estate planning isn’t just about wealth transfer—it’s about peace of mind. We ensure clients have the documents and plans in place to protect themselves and their families.
At a minimum, this includes:
- Updated wills and/or trusts
- Healthcare directives and durable powers of attorney
- Properly titled accounts and updated beneficiaries
For high-net-worth clients, we explore advanced estate strategies to manage estate taxes, support charitable giving, and ensure smooth wealth transfer across generations.
Bringing It All Together
This 7-step framework—the Sequoia System—is how we help clients live better lives, not just build better portfolios. It organizes everything that matters: lifestyle, spending, income, taxes, protection, and legacy.
Because the true sign of a great financial plan isn’t a low tax bill or a perfect asset allocation. It’s waking up each day feeling confident that your money is aligned with your goals.
Want help applying this to your retirement? Visit us at Root Financial.
The information presented is for educational and informational purposes only and should not be construed as personalized investment or financial advice. The content discusses general retirement planning strategies and is not intended to recommend any specific course of action for any individual.
Root Financial Partners, LLC provides tax planning as part of its financial planning services. However, we do not provide tax preparation services, represent clients before the IRS, or offer legal advice. Clients should consult their CPA or attorney before implementing any tax or legal strategies discussed. Nothing in this content should be interpreted as a recommendation to take a specific tax position or legal action.
Social Security claiming strategies involve a number of variables, including life expectancy, portfolio returns, tax considerations, and personal circumstances. Decisions regarding Social Security benefits should be made in consultation with your financial advisor, taking into account your full financial picture.
This content may include discussions around advanced financial planning strategies such as Roth conversions, backdoor Roth IRAs, tax loss harvesting, charitable giving, estate planning tactics, or Social Security claiming strategies. These concepts are general in nature and are not personalized advice. Suitability for these strategies depends on your individual tax situation, income, age, investment profile, estate plan, and other factors. Actions related to these strategies may trigger tax consequences or legal implications. Always consult with your CPA or attorney to assess suitability based on your personal financial circumstances.
This content may also include hypothetical or forward-looking performance examples, including Monte Carlo simulations. These are intended to illustrate concepts and do not reflect actual investment results or guaranteed outcomes. Assumptions used in simulations may not reflect real-world market conditions or client behavior. Actual results may vary significantly.
Examples provided are hypothetical and for illustrative purposes only. They do not reflect any specific client situation and should not be relied upon for investment decision-making. Past performance of investments is not indicative of future results. All investing involves risk, including the potential loss of principal.
Insurance guidance is provided for informational purposes only. Root Financial Partners, LLC does not sell insurance products and does not receive compensation from insurance providers. Any insurance decisions should be made in consultation with a licensed insurance professional.