We discussed their personal and financial goals and their situation. After a review of their cash flow, it was clear they needed to track their monthly expenses, so we provided resources to help track their budget.
We reviewed their monthly inflows and outflows and found areas that could be adjusted to begin a systematic savings plan. We placed greater emphasis on building an emergency fund and saving for retirement since there are many different options to explore for financing college.
Because the interest rates on their student loans were low, we agreed that they should continue making their regular payments.
After a thorough review of their cash flow, we dove into their investments and found that they each have a retirement plan at work that offered a matching contribution.
We discussed the importance of implementing various estate planning documents, particularly a will and a special needs trust for their oldest child. These documents would lay out their wishes after their deaths and help ensure that both of their children would be taken care of.
- They implemented their plan and we continued to meet with them throughout the years to monitor their progress and make adjustments along the way.
- Since both their retirement plans would be funded with pre-tax dollars, this would help enhance their present tax situation by lowering their taxable income.
- They felt comfortable that their goals were being met and trusted us to continue developing their plan for their ongoing needs.