The Situation
- 35-year-old business owner, planning to get married
- $150K of outstanding student loans with high interest rates that were not tax-deductible
- $1M in the bank, all held in cash
- No IRA or Roth IRA
- No disability or liability insurance
- No estate plan
- Lived in a rented apartment, interested in purchasing a house
- Owned out-of-state property with a high interest mortgage
Our Approach
- Paid off client's student loans from cash in the bank
- Implemented a diversified investment plan for capital growth
- Funded backdoor Roth IRA contributions
- Acquired umbrella liability insurance & revised existing auto policy
- Determined home purchase affordability with financial planning projections
- Refinanced out-of-state mortgage and saved annual interest expense
Collaborating with Specialists
- Worked with his accountant to determine the most tax efficient means to finance the home purchase, maximize pre-tax retirement savings, and improve overall financial plan
- Introduced him to an attorney to execute a full set of documents, consider a pre-nuptial agreement when he got engaged, and retitle his out-of-state property
- Introduced him to an insurance specialist to acquire a disability insurance policy and discuss life insurance needs
Significant Results
- Increased after-tax cash flow
- Sound investment portfolio matching client's financial goals
- Tax-free money growing in a Roth IRA
- Mitigated risks associated with disability, liability, and premature death
- Better prepared and organized for upcoming life changes
- Reliable team of advisors managing his finances while he focuses on running his business