A Guiding Wealth Client Case Study
Disclaimer: This is a description of a real Guiding Wealth client. Names have been changed for privacy purposes. Also, note that past results are not a promise of future success. Every situation is different and results or successes from one client do not guarantee the success of another.
Jack and Jane are in their late 50s and came to Guiding Wealth because they were ready to “get serious” about their retirement plan. They wanted to work with a financial planner because they had very minimal retirement savings and were worried they couldn’t contribute enough to their various accounts to help them retire on time.
They originally came seeking guidance on how to support their retirement and assumed that we’d support them with retirement projections and investment advice. They, like many people, believed that financial planning was limited to retirement- and investment-specific support. Jack and Jane didn’t realize that we’d actually deep-dive into other financial components in their lives to ensure their entire financial picture was taken into account.
Going beyond retirement accounts
After our initial meeting and onboarding, one of our first discussions with clients is about cash flow planning. In this phase, we go through your budget and cash flow to determine how you use money in your daily life. This is not designed to tell you that you “need to cut back” or change your spending habits; it’s merely how we get a lay of the land that advises your values.
During this meeting, we found that Jack and Jane were paying $1,500 a month toward their daughter’s college tuition. Their commitment to helping their daughter avoid student debt was commendable; their goal was to help her avoid student loans.
However, $1,500 is no small amount of money for a couple trying to save more for retirement — and those funds were coming at the cost of their own retirement savings.
But we identified a potential solution for Jack and Jane: In conversations with their daughter, they realized that she was already looking into working with schools that would be eligible for loan forgiveness. They still had the option to later help with her student loans, but this allowed them to prioritize their own situation.
Finding opportunities in their cash flow
We explained that by redirecting the $1,500 monthly tuition payments into their retirement savings, Jack and Jane could strengthen their own financial future while allowing their daughter to benefit from loan forgiveness programs. In short, the ability to divert these funds was the biggest key to making their financial plan. Deciding to divert those funds allowed them to strike a balance between supporting their daughter’s education and securing their retirement plan.
Comprehensive planning
On top of identifying where they could potentially invest more into their retirement, we also helped Jack and Jane:
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- Complete an estate plan
- Review their insurance policies
- Get life insurance to ensure sufficient coverage for them both
- Get clarity on their financial situation
- Gain confidence that they were on track for their financial goals
As a result of this more comprehensive approach, Jack and Jane were able to reallocate funds to significantly boost their retirement savings. They also gained peace of mind knowing that their decisions were driving them toward their ultimate goal: caring for themselves and their loved ones as they enter retirement.
Financial planning is more than retirement planning & investments
Financial planning is about looking at the whole picture. By helping Jack and Jane understand how their financial decisions were interconnected, we were able to guide them toward a more secure retirement while still supporting their daughter’s educational goals. This is just one example of how holistic, full-picture financial planning can change a family’s future!
At Guiding Wealth, our ongoing financial planning and wealth management services help clients navigate complexities that are unique to their family’s situation. Beyond retirement and investment planning, we also help you with budgeting, long-term saving, insurance planning, estate planning, and more!
Want to learn more about how we can help you? Contact us for a free consultation today.