We work with many young-ish:) families to strategize on when and how to save and fund short and longer-term goals. These families face different issues in that they are working toward building their wealth, while raising a family, building their careers and (often times) helping to care for aging parents. Time and money are valuable assets to this subset of clients and so they are looking to maximize on both within the many constraints of their day-to-day busy lives.  

The questions and conversations that we work through with these clients include…

• How much should we be contributing to our company retirement plans (401k/403b/457 plan, etc)? 
• How do we choose among the various plan investment options? 
• Should we refinance our home mortgage, or make extra payments over time? 
• How much should we maintain in our savings account as an emergency fund?
• What is the best way to begin saving toward higher education costs for our children? 
• How can we save for children that may not end up going to college? 
• Should we add our names to our parents checking and/or savings accounts in order to pay their bills in the event they become incapacitated? 
• Should we contribute to a Traditional or Roth IRA, and what are the tax implications of both? 
• How can we reduce tax liability as our incomes rise? 
• How much life insurance do we need? 
• How do we set up a plan to ensure our children and/or aging parents continue to be cared for in the event something happens to us? 
• What debts are okay to maintain as a growing family, versus debts that should be paid off as soon as possible?
• Will our current savings rate allow us to “make work optional” via early retirement or retirement from our full-time positions to start a small business or work part-time turning a hobby into an income stream?

Many families know they need and desire a formal written plan to aid in addressing these issues, but struggle with where and how to begin. This is where we come in. We review your overall financial picture by gathering data related to your personal finances (tax returns, retirement statements, etc.), but also gather data via discussions regarding your values and how that relates to your money mindset. These discussions often bring to surface a disconnect between spouses. Our objective is to bring these differences to the surface and develop a plan to accomplish joint, individual and family goals.

We do this by breaking goals down to more manageable time frames and realistic savings objectives. We work in concert with and link these clients to appropriate professionals to aid in tax preparation and estate planning. We help create buckets to place their hard-earned money in order to provide for their own future, but also to ensure their family is taken care of in the event something happens to them. Ultimately, we know that a plan provides peace of mind and a sense of empowerment in knowing they are doing the best they can with the resources at hand. We also know that their plan is ever-changing and so we meet at least annually to ensure they remain on track to continue meeting their goals and objectives.  

This client came to us with three boxes of financial documents looking for help gaining an understanding of her financial picture. She had divorced many years back and had one grown daughter. She had lived in the same home for the past 45 years and been a very good saver. She worked 2-3 jobs most of her life and had a variety of insurance and investment products – most of which she was unaware of why she had them, or what underlying value they provided her. She was unaware of truly how much she had and how to use it to help fund her retirement income needs. She had concerns over future potential health care costs and wanted to ensure not to burden her adult daughter in the event she needed to move to an assisted living facility in the latter years of her life.

As financial advisors who are dedicated to helping women, we walked her through her boxes to find accounts she didn’t even know she had. We discussed her various annuities and investment products to provide an understanding as to what she was paying for these products, and what they could do for her. We offered alternative strategies to fund her stated retirement income needs and objectives. We determined that she could switch to begin receiving her Social Security based on her ex-spouse’s earnings history for increased lifetime benefits. We discussed possible future long-term care expenses and showed her how her current savings would be sufficient to fund those potential costs. We ultimately helped to consolidate and organize her financial matters in a way she felt comfortable and empowered.

Several clients have come to us overwhelmed by the number of retirement and/or investment accounts they have opened over the years. They are in search of help consolidating these accounts to ease their record keeping, as well as to gain a better understanding and more control over their investment portfolio.

Clients often have several accounts that may include employer-sponsored retirement accounts (401k, 403b, TSP, etc) from previous employers, one or more Individual Retirement Accounts (IRAs), and/or non-retirement investment or savings accounts they’ve opened or been gifted at different times in their life.

• Do you have various employer-sponsored retirement accounts from past employers?
• Do you have multiple investment accounts with different holdings with different custodians?
• Do you have inherited accounts and don’t know what to do with them?
• Do you have money spread across several savings or Money Market Accounts that are barely earning any interest?
• Do you need help trying to figure out which of your accounts to fund and which accounts to spend down?

We help clients evaluate their current investments and create a portfolio in line with their risk tolerance and long-term financial goals. We identify which types of accounts can be consolidated (to avoid any unnecessary penalties) and then partner with clients to contact the account custodians to aid in completing the necessary paperwork to complete the transfers and/or consolidation. We work side-by-side with our clients all the way through the consolidation process to ensure they have a good understanding of their existing portfolio. We then meet with clients regularly to update their financial plan and make recommendations accordingly.

Keep in mind, it’s not an all-or-nothing approach. You may want to consolidate your employer-sponsored retirement plans from previous employers into an IRA that is managed for you, but maintain an individual investment account you manage yourself. Or, if you’re a couple, and you have different financial management styles, we can help. Some couples like to manage their finances and investments together and some like to maintain separate accounts and even separate Financial Advisors. We are happy to work with you in a way that fits your preferences and comfort level.

At age 57, this client was unexpectedly widowed. She and her late husband had been married for 36 years.  While they took on life with a divide and concur mindset, the husband primarily managed all household financial matters. She was very concerned and anxious that she had no personal finance or investing experience outside of bank accounts. She was frustrated with herself for not being more involved in order to gain an understanding of their financial picture. Yet, emotionally, it took her two years after losing her husband to begin facing the financial issues at hand. In those two years, she lived very frugally, picking up hours at work to help pay the bills as she was afraid to touch any of the savings and investments her husband had built up for their future. 

In meeting with us, she realized that she did not have to live as frugally as she had been. She realized that she could begin cutting back on her hours at work to enjoy more time with her three adult children and five grandchildren. We worked to help provide her education and tools to make smart money management decisions – explaining terminology in a way that she could understand. Discussions evolved regarding her personal savings and income needs, her desire to move closer to her adult children and methods to maximize her Social Security benefits as a widow. We found that she was eligible for survivor’s pension benefits from a previous job her husband had and set up her Social Security so that she would essentially get a pay raise in the latter years of her retirement. We helped her gain confidence and control over her financial life, reducing her anxiety and stress, and providing her the freedom to define new goals and begin to enjoy life again. 

This dual-income couple (ages 58 and 61) had both been in the workforce for the past 38 years. They raised a family and were working toward the ability to retire and begin marking items off of their bucket list. They had diligently saved and invested through their company 401k plans on their own through the years, but were looking to turn over management of their assets to a professional who more diligently followed the stock markets, allowing them time to begin enjoying the next chapter of life. They worried that their savings may not support their desired lifestyle if they retired a few years earlier than originally planned. They had a mild understanding of taxes, and were concerned how future Required Minimum Distributions would affect their tax liability in the latter years of their retirement. They also had a number of insurance policies (life, disability and long-term care) that they had owned for many years and wanted a better understanding of their need for continued coverage and premium payments.

We analyzed their financial picture and discussed strategies to help them accomplish their goals. We were able to move tax-deferred money to tax-free money, reducing their future potential tax liability issues. We provided guidance on choosing a pension option that met their objectives and created a sense of stability and security. We created a financial and wealth management plan reflecting their ability to bring in the same income after they retired as they did prior, allowing them to live comfortably, on their terms, well into their 90’s. We provided a number of what-if scenarios to take into account potential changes in healthcare needs and cost, as well as how a drop in the stock markets would affect their short and longer-term goals. Finally, we created a spreadsheet to explain their various insurance policy coverage and costs to help them make informed decisions and redirect funds as per their overall goals on this front. Our discussions and plan of action provided them peace of mind to push forward with their retirement plans and begin living life on purpose.