George & Susan

Age(s): 42 & 38

Occupation: Architect & TV show producer

Primary Goal: Before considering purchasing a vacation home, George and Susan want to gain a better understanding of their monthly income and expenses and their trajectory on their path to financial independence. Can they feasibly support Susan transitioning into part-time work, allowing her to dedicate more time to their young children during their formative years? They also want to gain a better appreciation for what effect purchasing a vacation home could have on their goal of funding their children’s college expenses.

Talk with John

The Challenge

Despite both George and Susan having good jobs, they are unsure if they can afford for Susan’s income to drop if she transitions to part-time and still be able to fund all of their expenses, while saving for their long-term goals.

They Also Wondered:

Is there a better strategy to pay off our debt?

Should we get a 15-year or 30-year mortgage? Should we get a 15-year or 30-year mortgage? Fixed rate or adjustable rate?

How much life and disability insurance should we have in place now with young children?

How should we be invested in our employer sponsored retirement accounts, pre-tax or Roth? How do we decide what investment options to choose?

Is a health savings account a worthwhile benefit to leverage? Should we consider taping the HSA to pay for medical expenses throughout the year, or pay out of pocket so the HSA can continue to grow?

The Approach

The first step for George and Susan was to meet with John and assess if there was a mutual fit for a working relationship. Once they learned more about each other and how John could solve their problems, they began to work through an action item checklist together to help George and Susan address their challenges.

The Results

George and Susan gained clarity and confidence about the financial position they were in and their trepidation about purchasing a vacation home turned to excitement as they envisioned all the lifelong memories it would help create for years to come. They were also able to:

Better understand what their new monthly cash flow would look like in the event that Susan scaled back to part-time work
Determine the best repayment plan for their debt situation, while not sacrificing savings goals or spending on experiences that they value
Establish a college savings plan for each child, understanding the different savings options available and how much to contribute for each child
Create an investment portfolio for each of their employer-sponsored retirement plans that aligns with their financial goals