To help put the impact of financial planning in perspective, below is a sample (and hypothetical) client case study:
Jason and Georgia are a dynamic couple navigating a significant transition. Georgia, thriving in her pharmaceutical sales career, and Jason, venturing out to start his own graphic design business, find themselves at a crucial financial juncture. With two kids aged 13 and 15, their decisions now will shape not just their future but that of their entire family.
Juggling Georgia's stable income and Jason's entrepreneurial leap, they are keen on maintaining financial security and lifestyle. Their savings are decent, but the uncertainty of starting a new business and the costs of two children heading to college soon have them seeking a solid financial strategy.
While Jason is excited about his new venture, they have concerns: How will this impact their current financial status? Can they continue to support their children’s education and activities? What if the business takes time to turn a profit? How should it be structured?
As they embark on this new chapter, Jason and Georgia seek a financial guide who can navigate them through the complexities of career transition, business start-up costs, and family financial planning.
Understanding their unique situation, Jason and Georgia partnered with a financial planner who specializes in assisting professionals and entrepreneurs. They wanted someone who could not only guide them through the financial aspects of starting a business but also ensure their family’s financial security wasn’t compromised.
Business Plan Suggestions: Discuss the best practices with Jason regarding a documented business plan and projected cash flow to ensure financial sustainability is realistic.
Emergency Fund Establishment: Built a solid emergency fund to safeguard against unforeseen expenses, particularly important during the initial business phase.
Early Retirement Analysis: By carefully evaluating their finances, we presented various scenarios for early retirement. Initially, they considered retiring at 55, but after understanding the trade-offs, they decided 58 was more feasible and comfortable for them.
Retirement Planning Adjustments: Revised their retirement planning to align with their new income structure and long-term goals.
Education Savings Strategy for Children: Reviewed educational goals for their children and ensure the increased income variability does not impact their children's academic future.
Stock Options Analysis: Assisted Georgia in understanding and maximizing her stock options and other equity compensation from her job.
Disability Insurance Evaluation: Assessed the need for disability insurance to protect their income, especially important with Jason starting a new business.
Debt Management for Business and Personal Finance: Advised on efficient debt handling, especially concerning the business start-up and mortgage management.
Portfolio Analysis and Rebalancing: Consolidating and analyzing their various accounts, we provided tailored portfolio recommendations to align with their risk tolerance using a mix low-cost index funds. By using low-cost funds, we were able to significantly reduce fees without sacrificing returns.
During this 30-minute introductory call, we aim to assess if Purpose Built is the right fit for you. We'll discuss your financial goals at a high level and also answer your questions to determine if our services can address your needs.
Once you’ve decided to move forward, we'll request crucial documents such as your financial statements and the prior year's tax return. These documents are essential for a comprehensive financial analysis.
At the initial meeting, we’ll refine your financial goals, including college expenses, retirement plans, long-term care considerations, and other savings objectives. We'll also discuss investment preferences and risk tolerance to tailor your plan to your unique situation.