Case Studies: Young Accumulators
Case Study 1
When we began working with this couple, they had just had their first child. Both were account managers for established companies, with good incomes, bonus plans, and stock plans. They wanted to upgrade their home within the next five years, save for their son's education, and begin a plan to purchase a cottage in the future.
By taking advantage of some cash flow planning and tax planning during their high income years, and helping them prioritize their objectives using the $Lifelines tool, we created a savings plan that would enable them to reach their goals, while maintaining their lifestyle spending.
Two years in, their new house purchase happened sooner than they had anticipated, with a second child on the way. Despite this unexpected change, our life-centered approach meant we could smoothly adjust and pivot their plan in a new direction, begin additional education savings, and still create future cash flow margin. By focusing on their upcoming life transitions and keeping their values at the center of their financial plan, this couple was set up to successfully adapt and make wise decisions throughout life's changes.
Case Study 2
This couple had been clients of ours for several years, and had a basic plan in place. Rather unexpectedly, one spouse changed careers and became an executive much earlier than anticipated. This position came with a number of executive compensation programs and stock option plans.
As a result, tax planning became much more important in order to preserve the income she was earning. Working alongside the HR and payroll departments, we were able to create a tax plan for these clients that maximized all available programs and benefits.
We also encouraged the family to give more now that their income had grown so substantially. Their annual giving increased almost tenfold, and they enjoyed a greater feeling of purpose, more involvement in some of the charities they supported, and the financial benefits of the tax savings.
Their financial life plan was adjusted and augmented to include home renovations, additional savings, and a cottage sometime in the future. We also put a risk management strategy in place to provide provision in the event of the unexpected, and to fit their new lifestyle desires.