The Backstory:Buying a Home AND Saving for Biannual Hiking Vacations!
Meet Kayla, 31, she is a Software Engineer at a fast-growing technology company. She earns a salary of $130,000 and has no debt. She is investing in a brokerage account that has accumulated $100,000. She has $152,000 in liquid savings. She is maxing out on her 401k every year. She wants to buy a house as she has a few roommates and is ready to move into a space that she can call her own with her dog, Sparrow. She wants to understand her work stock compensation with her company and make sure she understands her options. Top Financial Goals:
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Prepare:
We took the time to understand Kayla’s entire situation.
Plan:
Once we understood Kayla’s financial story and situation, we did the following:
Pursue:
Kayla now has a better understanding of where her money is going. She is more organized, empowered and has peace of mind.
Within a few months of working with Your Story Financial, Kayla accomplished a few things:
The above client scenario is hypothetical and does not involve an actual Your Story Financial client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Your Story Financial is engaged to provide investment advisory services.
We took the time to understand Kayla’s entire situation.
- We completed the Discovery Session by learning about how Kayla has worked with money in the past, where she gets her ideas about money, and how it works from her perspective today.
- Then we will discuss Kayla’s present handling of money and understand how she desires to handle money in the future. From there, we begin to provide a way to gather the quantitative information necessary to create a plan.
- From here, it is our goal to help Kayla understand her cashflow as well as information about her income, her expenses and how it all ties into her overall net worth. These key elements are important for determining what to do going forward.
Plan:
Once we understood Kayla’s financial story and situation, we did the following:
- Developed a plan for a comfortable emergency fund savings to maintain.
- Created a plan for additional funds from her stock compensation and allocated those funds for diversification while also meeting her goals to pursue her biannual hiking trips.
- Developed a plan to contribute to her Health Savings Account.
- Determined what an affordable and sustainable home mortgage payment would be for the neighborhood and lifestyle desired.
- Ensured there was enough funds available for a down payment on her new home.
- Delegated investment management of her company 401k to Your Story Financial, LLC to maintain proper allocations based on determined risk.
- Consolidated and organized her accounts for seamless accessibility.
- Coordinated with a CPA to determine tax liability regarding the work equity compensation.
Pursue:
Kayla now has a better understanding of where her money is going. She is more organized, empowered and has peace of mind.
Within a few months of working with Your Story Financial, Kayla accomplished a few things:
- Purchased her first home.
- Sold her first round of vested Restricted Stock Units and secured them in a diversified portfolio to create more investment opportunities.
- Saving for her biannual trips.
- Funding her 401k and Traditional IRA at the maximum amounts.
- Consolidated her retirement accounts.
The above client scenario is hypothetical and does not involve an actual Your Story Financial client. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience the same or certain level of results or satisfaction if Your Story Financial is engaged to provide investment advisory services.