These case studies feature a realistic hypothetical client to demonstrate the power of SIPS. We will provide an in-depth analysis of structured income plans, focusing on cash flow management and tax strategy.
Key Highlights:
Wealth Projection: Asset levels across different life stages.
Retirement Targets: Defining and meeting income goals.
Tax Analysis: Projecting approximate tax rates.
Visual Insights: Data-driven charts to illustrate core financial milestones.
Key Sections in the Article:
Background:
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Name: John Doe, Jane Doe
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Age: 67, 62
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Marital Status: Married
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Occupation: John retired, Jane working
Incomes (yearly):
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John is retired; his Social Security is $41,000 the COLA at 2.8%
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Jane's Income; $40,000, growing at 3%, Social Security $21,000 at 62 the COLA at 2.8%
Assets:
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Joint Brokerage Account: $150,000; Moderate Growth 3% net growth per year
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John’s 401(K): $800,000; Conservative Growth 4% net growth per year
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Jane’s ROTH IRA: $125,000; Conservative Growth 5% net growth per year
Goals and Objectives:
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Target Income: The first year will start at $70,000 with an inflation factor of 2.8%. When in retirement, the target income will continue to grow at 2.8%.
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Joint Brokerage Account: Withdrawal amounts to reach the target income while Jane is working. When there are excess amounts in retirement years, reinvest it back into the Brokerage Account.
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John’s 401(k): Withdrawal amounts to reach the target income for the remainder of the plan.
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Jane’s ROTH IRA: While Jane is working, they will no longer contribute. In retirement years, withdrawal amounts to reach the target income for the remainder of the plan if needed.
Expenses:
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Travel: They would like to travel until John turns 80. $8,000 with an inflation factor of 2.8%.
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Gifting to Family: For the remainder of the plan $3,600 per year.
Related Sections and Articles: Client Dashboard, Client Information, Incomes, Assets, Goals and Objectives
Step 1: Client Information: All background information is displayed on the Client Information page. 
Step 2: Incomes: Primary income and Social Security details are displayed on the Incomes page.
Part Two: Structured Income Plans:
Related Sections and Articles: Structured Income Plan, Understanding a Structured Income Plan that has a Target Income and an After-Tax Target Columns, Tax Calculation Option: Adding Assets into a Structured Income Plan, Tax Calculation Option: Adding Income and Expenses into a Structured Income Plan
Current Year: Below is a structured income plan if Jane retired in the current year (2026). This plan has implemented all the objectives and goals that are mentioned above. We will highlight each column and its meaning starting on the left-hand side.
Step 1: Numbers in Year 2026: Note the numbers in the year 2026.
Step 2: Numbers at the End of the Plan: Note the numbers at the end of the plan; they represent the total amounts of the columns.
Step 3: RMD Column: This column represents the amount that needs to be withdrawn from qualified accounts, which for this plan includes both the retirement accounts. The background color is white, which indicates the exact RMD amount has been withdrawn. If the background color is red, not enough is being withdrawn to satisfy the RMD in that year. If the background color is green, more than the RMD is being withdrawn from qualified accounts in that year.
Step 4: Year: Each row represents one year in the plan. 
Step 5: Name & Age: This column displays the client’s name and age. 
Step 6: Brokerage Account & Income: The grayed-out section displays the growth rate (shaded in orange) and the initial account balance. The left column with the header "Account" displays the estimated account balance at the end of that year. The right column with the header "Income" represents any cashflow in or out of the account in that year. Since the header is "Income" a contribution would be negative, and a withdrawal would be a positive number.
Step 7: 401(k) Account & Income: This follows the same pattern as the Brokerage Account with "Account" and "Income" columns. 
Step 8: ROTH IRA Account & Income: This follows the same pattern as the Brokerage Account with "Account" and "Income" columns. 
Step 9: Accounts Total: The sum of all the assets displayed by year. 
Step 10: Planned Distribution: This is the netted total of all funds added or withdrawn from the accounts in that year of the plan. Numbers in (parentheses) indicate overall net savings to accounts in that year; numbers not in parentheses indicate a net withdrawal from accounts in that year.
Step 11: Percent Distribution: This value represents the percentage amount of the total funds added or withdrawn from the account in that year of the plan. If the percentage is a negative amount, it represents the amount being deposited. If the percentage amount is positive, it represents the withdrawal rate. 
Step 12: SS: These columns represent the Social Security income. The income begins based upon the age specified for this income in the structured income plan. You can change the start-date for social security using the "Manage" button for the Social Security Income. The orange section displays the annual growth rate for this income. 
Step 13: Wages: This column is part of the income section and represents the client’s yearly wage. The orange section displays the annual growth rate for the yearly wage increase. The starting wage amount corresponds to the value entered on the income page. Similarly, the annual growth rate is initially populated based upon the percentage specified on the income page in the Client Dashboard. 
Step 14: Travel: Expenses are modeled as a negative income. The orange section displays the annual growth rate for this expense. Since this amount is an expense, it is displayed as a negative number. 
Step 15: Gifting: Expenses are modeled as a negative income. The orange section displays the annual growth rate for this expense. Since this amount is an expense, it is displayed as a negative number.
Step 16: Approx Income Tax: This is the estimated income taxes and effective tax rate percentage for each year in the plan.
Step 17: After Tax Income: Since this is an Income Plan, the after-tax income is the same as the annual after-tax cashflow the plan generates each year.
Step 18: After Tax Target: The after-tax target is the annual after-tax cashflow that the client would like to have. Any income generated over this amount will be reinvested into Accounts. The inflation factor represents how much their target income or annual target after-tax cashflow needs to rise to maintain the spending power illustrated in year 1. 
Step 19: Income Gap: This column indicates whether there is a monetary difference between the After Tax Income and After Tax Target that is not being made up using deposits or withdrawals from accounts. If the numbers are red, this means there is an income shortfall for that year by the amount in red and the actual income generated from the netted account withdrawals plus incomes minus expenses and taxes is less than the After Tax Target income. If the numbers are green, there is an excess, which means the actual income generated exceeds the target income and is not being reinvested into the accounts. If the number is 0 and has a white background, it means that the After Tax Income and After Tax Target are perfectly aligned and equal. 
Jane retiring at 67, John already retired: Below is the structured income plan for when Jane retires at 67 and John is already retired. This plan has implemented all the goals that are mentioned below. We will highlight which column has had significant changes from the current year scenario.
Goals and Objectives:
Target Income: The first year in retirement will start at $70,000 with an inflation factor of 2.8%.
Joint Brokerage Account: Withdrawal amounts to reach the target income while Jane is working. When there are excess amounts in retirement years, reinvest it back into the Brokerage Account.
John’s 401(k): Withdrawal amounts to reach the target income for the remainder of the plan.
Jane’s ROTH IRA: While Jane is working, they will no longer contribute. In retirement years, withdrawal amounts to reach the target income for the remainder of the plan if needed.
Expenses:
Travel: They would like to start traveling now, and they would like to stop when John turns 80. The budget will be $8,000 with an inflation factor of 2.8%.
Gifting to Family: For the remainder of the plan $3,600 per year.
Step 1: Jane at 67, John Already Retired: Note the numbers when Jane is 67 and John is already retired in the year 2031.
Step 2: Numbers at the End of the Plan: Note the numbers at the end of the plan; they represent the total amounts of the columns.
Step 3: After Tax Target: The after-tax target is the annual after-tax cashflow that the client would like to have. Any income generated over this amount will be reinvested into accounts. The inflation factor represents how much their target income or annual target after-tax cashflow needs to rise to maintain the spending power illustrated in year 1.
Step 4: Brokerage Account & Income: The grayed-out section displays the growth rate (shaded in orange) and the initial account balance. The left column with the header "Account" displays the estimated account balance at the end of that year. The right column with the header "Income" represents any cashflow in or out of the account in that year. Since the header is "Income" a contribution would be negative, and a withdrawal would be a positive number. 
Step 5: John's 401(k) Account & Income: This follows the same pattern as the Brokerage Account with "Account" and "Income" columns. 
Step 6: Accounts Total: The sum of all the assets displayed by year. 
Step 7: Planned Distribution: This is the netted total of all funds added or withdrawn from the accounts in that year of the plan. Numbers in (parentheses) indicate overall net savings to accounts in that year; numbers not in parentheses indicate a net withdrawal from accounts in that year.
Step 8: Percent Distribution: This value represents the percentage amount of the total funds added or withdrawn from the account in that year of the plan. If the percentage is a negative amount, it represents the amount being deposited. If the percentage amount is positive, it represents the withdrawal rate. 
Step 9: Wages: This column is part of the income section and represents the client’s yearly wage. The orange section displays the annual growth rate for the yearly wage increase. The starting wage amount corresponds to the value entered on the income page. Similarly, the annual growth rate is initially populated based upon the percentage specified on the income page in the Client Dashboard. 
Step 10: Approx Inc Tax: This is the estimated income taxes and effective tax rate percentage for each year in the plan. 
Jane retiring at 70, John already retired: Below is the structured income plan for when Jane retires at 70 and John is already retired. This plan has implemented all the goals that are mentioned below. We will highlight which column has had significant changes from the last two scenarios.
Goals and Objectives:
Target Income: The first year in retirement will start at $70,000 with an inflation factor of 2.8%.
Joint Brokerage Account: Contribute the yearly excess amount from the target income until Jane retires. When there are excess amounts in retirement years, reinvest it back into the Brokerage Account.
John’s ROTH 401(k): Withdrawal amounts to reach the target income for the remainder of the plan.
Jane’s Traditional IRA: While Jane is working, they will no longer contribute. In retirement years, withdrawal amounts to reach the target income for the remainder of the plan.
Expenses:
Travel: They would like to start traveling now, and they would like to stop when John turns 80. The budget will be $8,000 with an inflation factor of 2.8%.
Gifting to Family: For the remainder of the plan $3,600 per year.
Step 1: Jane at 70, John Already Retired: Note the numbers when Jane is 70 and John is already retired in the year 2034. 
Step 2: Numbers at the End of the Plan: Note the numbers at the end of the plan; they represent the total amounts of the columns. 
Step 3: Brokerage Account & Income: The grayed-out section displays the growth rate (shaded in orange) and the initial account balance. The left column with the header "Account" displays the estimated account balance at the end of that year. The right column with the header "Income" represents any cashflow in or out of the account in that year. Since the header is "Income" a contribution would be negative, and a withdrawal would be a positive number. 
Step 4: John's 401(k) Account & Income: This follows the same pattern as the Brokerage Account with "Account" and "Income" columns. 
Step 5: Accounts Total: The sum of all the assets displayed by year.
Step 6: Planned Distribution: This is the netted total of all funds added or withdrawn from the accounts in that year of the plan. Numbers in (parentheses) indicate overall net savings to accounts in that year; numbers not in parentheses indicate a net withdrawal from accounts in that year. 
Step 7: Percent Distribution: This value represents the percentage amount of the total funds added or withdrawn from the account in that year of the plan. If the percentage is a negative amount, it represents the amount being deposited. If the percentage amount is positive, it represents the withdrawal rate. 
Step 8: Wages: This column is part of the income section and represents the client’s yearly wage. The orange section displays the annual growth rate for the yearly wage increase. The starting wage amount corresponds to the value entered on the income page. Similarly, the annual growth rate is initially populated based upon the percentage specified on the income page in the Client Dashboard. 
Step 9: Approx Inc Tax: This is the estimated income taxes and effective tax rate percentage for each year in the plan. 
Related Sections and Articles: Cash Flow and Tax Advisor, Part One: Forecasting Effective Tax Rates While the Client is Working, Understanding the Advanced Tax Planning Page
The Cashflow and Tax Advisor can provide a simple way to look at the next level of detail for tax estimates in a given year. You can walk through all relevant items on a 1040 tax form and even print a hypothetical 1040 for any future year of the plan or scenario that you model yourself. In the current scenario we will explain what each line is, for the remainder of the scenarios we will point out significant changes. Below are the tax scenarios we will be looking at:
Jane retiring at current age, John already retired
Year 2032: Jane age 68, John age 73
Year 2039: Jane age 75, John age 80
Step 1: Manage: Click on the green Manage button within the Approx Income Tax column. 
Step 2: Create Tax Scenario For Year Textbox: Click on the down caret arrow in the Create Tax Scenario Text box and select the year. 
Step 3: Create Tax Scenario For Year: Click on the green Create Tax Scenario for Year button. 
Step 4: Uncondense/Condense button: You will automatically be taken to the Cash Flow and Tax Advisor button. Click on the Uncondense/Condense button to get the condense view. 
Step 5: Wages: The first-year income will automatically be displayed in the tax return column. 
Step 6: Qualified Dividends: SIPS treats dividend from investment accounts as qualified. 
Step 7: All Dividends: These are the dividends from the non-qualified investment account. 
Step 8: Social Security: SIPS automatically calculates the amount and percentage of Social Security that is taxable. 
Step 9: Short Term and Long-Term Capital Gains Tax Return: These tax liabilities can either be triggered from turnover within a taxable account or when assets are withdrawn from taxable accounts. 
Step 10: Income Total: These total amounts show the cash flow and tax return amounts of the total income. 
Step 11: Standard Deduction: This is the standard deduction based upon the tax year and filing status. The combined amount of all deductions such as the standard or itemized deduction and any additional adjustments that reduce your taxable income before calculating income tax. 
Step 12: Largest Ded –Sch A or Std: If your itemized deductions from Schedule A is larger than your standard deduction, the higher amount will automatically be used. 
Step 13: Additional Deductions: This is the temporary senior deduction. They are getting this deduction due to there age. Effective for 2025 through 2028, individuals who are age 65 and older may claim an additional deduction of $6,000. This new deduction is in addition to the current additional standard deduction for seniors under existing law.
Step 14: Total Deduction: The combined amount of all deductions such as the standard or itemized deduction and any additional adjustments that reduce your taxable income before calculating income tax. 
Step 15: Cap Gains and Qual Dividnds: Investment income taxed at special lower long-term capital gains rates instead of ordinary income tax rates. 
Step 16: Taxable Income: This is the total amount of taxable income. 
Step 17: Tax Bracket: Marginal Tax Bracket for there income that year.
Step 18: Effective Tax Rate: Take note of the effective tax rate; this rate is rounded for display purposes. This rate corresponds to the effective rate shown in the income plan each year. For this scenario, it's year 1 which is 2026 for this plan. 
Step 19: Approximate Tax Calc: The estimated amount of income tax you owe before applying credits, based on your taxable income and the IRS tax tables or tax brackets. Take note of the Tax Return calculation. The dollar amount should match precisely on the structured income planning page. 
Step 20: Discretionary Income: The amount of income left after subtracting taxes and essential deductions, showing how much is available for non-essential spending. 
Step 21: Amount you owe: The total tax you still need to pay after subtracting all withholding, payments, and credits from your calculated tax liability. 
In this example, we will take a detailed look at the tax calculation for the year 2032 and compare it side-by-side with the tax calculations in 2026. We will highlight significant changes between both scenarios.
Step 1: Wages: Since neither is working and in retirement, there is no amount shown in the Wages section. 
Step 2: IRA Distribution: Displays the net amount withdrawn from qualified accounts in that year. 
Step 3: Social Security: SIPS automatically calculates the amount and percentage of Social Security that is taxable. 
Step 4: Income Total: These total amounts show the cash flow and tax return amounts of the total income. 
Step 5: Taxable Income: This is the total amount of taxable income.
Step 6: Tax Bracket and Effective Tax Rate: Marginal Tax Bracket is for there income for the year that is displayed. Take note of the effective tax rate; this rate is rounded for display purposes. This rate corresponds to the effective rate shown in the income plan each year. 
Step 7: Approximate Tax Calc: The estimated amount of income tax you owe before applying credits, based on your taxable income and the IRA tax tables or tax brackets. Take note of the Tax Return calculation. The dollar amount should match precisely on the structured income planning page. 
Step 8: Discretionary Income: The amount of income left after subtracting taxes and essential deductions, showing how much is available for non-essential spending.
Step 9: Amount you owe: The total tax you still need to pay after subtracting all withholding, payments, and credits from your calculated tax liability. 
Step 10: Print 1040: Click on the green Print 1040 button. 
Step 11: Hypothetical 1040 for Year 2032: A hypothetical 1040 tax form for 2032 is automatically generated. 
Year 2039: Jane age 75, John age 80:
In this example, we will take a detailed look at the tax calculation for the year 2039 and compare it side-by-side with the tax calculations in 2026 and 2032. We will highlight significant changes between both scenarios.
Step 1: IRA Distributions Tax Return: This amount is equal to the net amount withdrawn from qualified accounts in 2039. 
Step 2: Social Security: SIPS automatically shows the amount and percentage of Social Security that is taxable. 
Step 3: Income Total: These total amounts show the cash flow and tax return amounts of the total income. 
Step 4: Taxable Income: This is the total amount of taxable income. 
Step 5: Tax Bracket and Effective Tax Rate: Tax Bracket and Effective Tax Rate: Marginal Tax Bracket is for there income for the year that is displayed. Take note of the effective tax rate; this rate is rounded for display purposes. This rate corresponds to the effective rate shown in the income plan each year. 
Step 6: Approximate Tax Calc: The estimated amount of income tax you owe before applying credits, based on your taxable income and the IRA tax tables or tax brackets. Take note of the Tax Return calculation. The dollar amount should match precisely on the structured income planning page. 
Step 7: Discretionary Income: The amount of income left after subtracting taxes and essential deductions, showing how much is available for non-essential spending. 
Step 8: Amount you owe: The total tax you still need to pay after subtracting all withholding, payments, and credits from your calculated tax liability. 
Related Sections and Articles: Asset Allocation and Net Worth, View Comparison on the Asset Allocation and Net Worth Landing Page, Project Account Value Graph, Planned Yearly Income Graph
The Asset Allocation and Net Worth page provides a visual summary of the assets in the scenario the client has chosen to follow. The Graphs page provides a visual summary of the accounts and incomes.
Step 1: Scenario Explanation: SIPS will automatically display a pie chart and indicate what the asset allocation is set to. 
Step 2: Monetary Assets: SIPS will automatically display the monetary assets. 
Step 3: Summary: SIPS will automatically display text stating the client’s total net worth. This amount includes both monetary and major assets.
Step 4: Project Account Value Graph: A visual way to see how the accounts total column has changed over time. 
Step 5: Planned Yearly Income Graph: A graph to quickly understand the scenario and the structured income plan. 
Related Sections and Articles: Generate Report Function, Understanding the Data from the Select Pages in Reports
The Reports are a way for you to share a customizable snapshot of your client's financial data. The report is created as a PDF document so it is easy to give digitally or in a paper format.
Step 1: Report: A condensed view of the report. 
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