Russ & Donna Kemp are in the prime of their careers. They both work for large companies and are consistently hitting their career goals. The only problem was when it came to their financial goals; they did not know where to start. Are we on the right track? We have been saving, but what’s the number we need to get to for retirement?
Both Russ and Donna have been working corporate jobs and accumulated sizable benefits in their respective companies. Although these seemed like great benefits, how will they utilize them? How will this impact what they will need during retirement? How can we maximize what we get from our companies?
As soon as their daughter was born, Russ & Donna started saving for college. As their daughter grew, so did her ambitions. How much will college cost in the future? They researched college savings options online, but was their 529 plan getting the job done?
All these questions led Russ & Donna to reevaluate their finances. They felt they were off to a good start but recognized the need for someone to help put a plan in place. That’s when they reached out to us.
Russ & Donna’s current plan of maxing out their 401(k) and saving in their current 529 plan was a good start. However, they were not on track to achieving their goals or getting to their “number” by the time they wanted to retire. We also noticed some room for improvement when reviewing their company benefits, investment portfolio, and 529 plan. It was time to get to work.
One thing Russ & Donna didn’t realize about their current situation was that rising inflation, tax rates and several inefficiencies (costs, taxes, etc.) were adding risk to their situation. After finding this out, we helped them create the following plan:
Russ & Donna were off to a great start but needed some help taking their finances to the next level. Creating a comprehensive plan enabled them to accumulate assets more efficiently, create passive income during retirement, and combat risks such as rising inflation and tax rates.
Disclosure: This narrative represents a hypothetical client situation. Results are not typical or guaranteed. Any results achieved or implied in this narrative are not necessarily the most common outcome. Information presented is believed to be current and should not be viewed as personalized investment advice. Information presented in this narrative should not be viewed as an offer to buy or sell any securities or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.