The Young Family
Tom and Stephanie Jones, 39 & 37
Teacher and Registered Nurse
Incomes: $70,000 and $95,000
When Tom and Stephanie ﬁrst came to meet with me, they were pregnant with their ﬁrst child. They owned a condo in the city that Stephanie had bought and was living in when they got married, which was now rented out, and they owned a home in the suburbs that they now live in. They weren’t crazy spenders, but there wasn’t much money left over every month after the bills were paid and they paid for lifestyle. Their biggest concerns were that they had no emergency fund and weren’t sure whether or not they were on track for retirement. They also weren’t sure whether they could afford an extended maternity leave if Stephanie ended up wanting to stay with the baby longer than work would pay for.
Plan Options To Consider
From our first meeting, I was confident that there were multiple planning opportunities for Stephanie and Tom to position them for when the baby came. During the first few conversations it became clear that being able to go out to eat together and each have discretionary income was important to them so looking at how to make a budget work for them was crucial. This would involve looking at fixed expenses to see if they were overspending in areas they didn’t care about. But we would also need to look at life insurance and disability insurance options to protect their income. Options for building up an emergency fund need to be examined to create a buffer for “just in case situations”, as well as helping Stephanie while on maternity leave an not earning an income.
The client experience described may not be representative of any future experience of our clients, nor considered a recommendation of the advisor’s services or abilities or indicate a favorable client experience. Individual results will vary. Strategies mentioned may not be suitable for every individual.