The Backstory:Enjoying Life Without the Guilt!
Meet Nicole and Robert, 44 and 45. Nicole home schools their two children, 5 and 8 years old. Robert is an Information Technology employee for the city. Robert makes $190,000. They believe college education for their children is important. However, they're not sure if they are saving enough for it. They also need to make sure they are on track for saving for retirement and want to spend money on “fun” activities without worrying. Top Financial Goals:
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Prepare:
Plan:
Once we understand Nicole and Robert’s financial story and situation, we did the following:
Pursue:
Nicole and Robert achieved the following:
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.
- First, we needed to understand Nicole and Robert’s cash flow. The Discovery Session helped us to clarify how due to Robert’s upbring, money was scarce for him. As for Nicole, money was abundantly available and attainable.
- After discovering Nicole and Robert’s values regarding money, we helped them craft a new narrative that would work for them and their family moving forward. Nicole and Robert understood the importance of being on the same page to create and generate wealth for generations to come.
- We begin to learn about various strategies to help build their confidence for being on the right track as they proceed forward.
Plan:
Once we understand Nicole and Robert’s financial story and situation, we did the following:
- Developed a plan for a comfortable emergency fund savings to maintain.
- Created a cash flow plan to evaluate where the money was going and then prioritized according to the goals established.
- Created an education savings plan for the children.
- Created and reviewed the family’s plan for income replacement should Nicole or Robert pass away unexpectedly.
- Conducted a life insurance analysis.
- Develop a plan for contributing to a spousal Roth IRA for Nicole and orchestrated efforts to maximize it.
- Automated savings into a separate bank account for leisure activities/experiences (i.e., entertainment, dinning out, traveling).
- Increase Robert’s 401k contributions and allocations to his Roth IRA.
- Work with an Estate Planning Attorney to get their trust, health care directives and power of attorney in order.
Pursue:
Nicole and Robert achieved the following:
- Maximized allotted amounts to Robert’s 401k and their Roth IRAs.
- Purchased life insurance for both.
- Begin contributing funds into a public state university education 529 plan for their children.
- Enjoying guilt-free occasional dining out and spur of the moment weekend getaway due to having a better understanding of where their money goes.
- Have an estate plan they are confident in.
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.