Challenges:
- Balancing their workloads at their places of business and the demanding schedule of their two children, Trevor and Paige.
- Estate planning and caring financially for minor children
- Financial planning with multiple high-priority goals of retirement, college and paying down their mortgage and not sacrificing their current lifestyle
How we work together:
- Review of cash flow - getting organized to clearly define what is coming in and what is going out and if they are on track for retirement after they determined that was their highest priority, though they were willing to work longer if it meant they could cover more college expenses for Trevor and Paige.
- Discussion of interest rates on mortgage and cost of college to determine what percentages would be allocated to these two secondary, but still important, goals. And, discovered that Mary and Pat would like to travel a little more frequently once the kids are both away at school - and how that became a factor in their percentages for each goal.
- Referral to experienced estate planning attorney and facilitate communication between trusted professionals for financial, tax and estate planning matters for efficiency and ease between those important areas.
- Ensuring family member will be taken care of financially and addressed appropriately with estate planning, as needed, and with a consideration for potential complicating factors - such as ensuring an inheritance wouldn't be spent too quickly or on items that weren't intended.
- Create cash flow solutions, including order of which account type to access and impact on taxable income with an understanding of priority needs and wants for active retirement and later retirement.
Outcome:
Mary and Pat determined their goals and then ranked them by importance - an exercise they found really valuable to better deploying their income and assets going forward. We got really focused on achieving their goals: retirement, travel, college for Trevor and Paige and after college, revisiting paying down their mortgage.
With their retirement on track, they felt more comfortable and confident looking at college for the kids and agreed that once that was settled, they would take some time away to travel to mark a new chapter in their lives as empty-nesters - at least until the kids both came home for college breaks.
