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Case Study #1: Growing Our Family

Family case study

Jim: Aerospace Engineer, 41 years old
Janet: Teacher, 38 years old

Jim is a 41-year-old Aerospace Engineer, while Janet is a 38-year-old Teacher. They are a successful mid-career couple in the wealth building stage of their lives. Despite their ambitious career goals and dreams for their family, they found themselves lacking the time and organization to effectively manage their financial lives. To turn their vision into a reality, they recognized the need for a robust financial plan.

The Challenge: 

With their children excelling in school and various activities, along with Janet’s teaching career and Jim’s advancements as an Aerospace Engineer, Jim and Janet had several positive aspects in their lives. However, they were unsure about their financial situation. Amid the demands of family life and their careers, they had accumulated some retirement assets without proper planning. They had a few accounts at a discount brokerage firm, a pair of Individual Retirement Accounts (IRA), Jim’s 401(k), and Janet’s 403(b) retirement account. Unfortunately, they hadn’t been actively monitoring these investments and lacked knowledge about their performance and associated fees. They needed the guidance of a Financial Planner to develop a comprehensive approach to managing their somewhat disorganized financial life. Jim and Janet had specific concerns:

  • Optimizing their budget
  • Saving for their children’s college expenses
  • Determining the necessary life insurance coverage, if any
  • Estate planning requirements
  • Balancing investments across multiple retirement accounts (401(k), 403(b), IRA, taxable)
  • Identifying any blind spots in their financial lives that they were unaware of

The Solution:

To gain control over their finances, we helped Jim and Janet understand how to effectively track their spending and leverage available resources. We provided insights into the best methods for setting aside money for their children’s future needs. Additionally, we offered a comprehensive overview of the potential opportunities and risks associated with their various retirement accounts. In response to their preference for a more hands-on investment approach, they entrusted us with managing their IRAs and brokerage account using our professionally managed portfolios.

Furthermore, Jim and Janet gained valuable knowledge about the most suitable insurance coverages for their family. They now have a clear understanding of their financial situation and a well-defined path towards achieving their desired retirement lifestyle.

This case study illustrates how a strategic financial plan, combined with expert guidance, enabled Jim and Janet to overcome their financial challenges, optimize their investments, and align their resources with their long-term goals.