Case Study

Young Family Building Solid Foundation

“Every step counts.”

I met Anna and Dave Miller* as they were preparing for the birth of their second child. Life was already busy enough raising their four-year-old son and juggling careers. Anna was a marketing director while Dave was a social worker at a local nonprofit. They decided it was time to get help with upcoming big decisions and actually “have a plan” for the future vs. the ad hoc saving they’d been doing the last several years — always wondering if they were “on track” for retirement, whatever that might mean. Anna and Dave were planning to sell their condo and buy a house but weren’t sure how much they could afford, especially with increased childcare costs on the horizon, and student loans still to pay off. 

Our process working together involved:

• Getting clear on what was actually most important for the house, college, their careers and family.
• Uncovering where money was actually going every month, and what changes they’d be willing to make. Using interactive software, we worked together comparing scenarios for how they might allocate their resources differently, with more intention based on what they said was priority. Anna and Dave realized they were willing to trade a bigger house for more time with their kids.
• Talking through what could happen. For the first time, Anna and Dave told each other what they’d want for the family if one of them got sick or passed away.
• We also talked about “Insurance 101” and options for getting coverage that fits within their financial plan.

Flash forward three years, and Anna and Dave have made a ton of progress and feel good about their outcomes, some of which include:

• Saving an additional $1,500 per month they didn’t think was possible by using a simpler system.
• Increasing net worth by 60 percent over three years
• Earning 20x higher interest on their $50,000 emergency fund by moving to a more appropriate account.
• Clarity on how much they need to save for retirement, ratcheting up contributions to 401(k)s over time
• Dave going through process to certify his employer and loans qualify for Public Service Loan Forgiveness, with plan to have $30,000 forgiven in 4 more years
• Saving monthly into tax-advantaged 529 College accounts,
• Hiring a nanny so they can spend more time with the kids, and buying a less expensive house that still suits their needs
• Reallocating their 401(k)s and consolidating old retirement accounts based on an actual long-term investment strategy and professional advice
• Setting up wills naming guardianship, powers of attorney, and a revocable trust ensuring their family is taken care of
• Getting $2.5 million of life insurance each, after realizing they could afford it
• Dave finding a higher pay job while staying in non-profit sector, increasing income by 30%
• And much more!

*This is a case study and is for illustrative purposes only. Actual performance and results will vary. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted. This case study does not represent actual clients but a hypothetical composite of various client experiences and issues. Any resemblance to actual people or situations is purely coincidental.

Case Study

Helping a Family That Lost the Primary Breadwinner

“We are here when you need us.”

A good client of ours was tragically diagnosed with amyotrophic lateral sclerosis or ALS. They already had a financial plan in place, however, the plan changed when he received his diagnosis. We worked with the family to modify the financial plan, knowing they would be losing their only breadwinner within three to five years. We needed to consider the financial well-being of his spouse and two children who would outlive him.

We left no stone unturned:

• We helped the family carefully evaluate their options when it came to losing employment income, applying for disability income benefits, budget, savings and insurance.
• The family needed advice on whether to go on full disability or “retiree disability,” which had the added benefit of retaining $450,000 of life insurance.
• The family chose to downsize their home and living expenses, and we helped them plan their budget.
• We provided financial projections and modeled the future expenses of the surviving spouse and children so the breadwinner could have peace of mind

Sadly, the client passed after three brave years battling ALS. After the funeral was over and the flowers were gone, I met with the widow to help her sort through everything. When I arrived, she had 20 stacks on her dining room table: each one was a problem that needed to be solved or an issue that needed resolution. We went through each pile, systematically, and either solved the problem or created a plan of action. With our help, every stack was eliminated.

It’s been a few years since our client passed and we are still working with the family with monthly check-ins to help them make wise decisions.

• We’ve guided the family on the sale of their home
• We’ve discussed with the adult children the financial resources available to them and their mother
• We continually help the family with budgeting, cash flow, and investment management

Life has many twists and turns to it. We are all vulnerable. Our role is to help people have a written plan in place so that when difficulty arises, we can help.

*This is a case study and is for illustrative purposes only. Actual performance and results will vary. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted. This case study does not represent actual clients but a hypothetical composite of various client experiences and issues. Any resemblance to actual people or situations is purely coincidental.