Building Wealth

Case Study

Rachel & Andrew* are both young professionals with two small children in their mid-30s. They are new to investing and other than a few stocks that were gifted during their youth and a 401(k) plan through Rachel’s job, they have never invested in the market.

During their 20’s they amassed a large amount of student loan debt and they used most of their savings on the purchase of their first home. When Rachel and Andrew came to us, they had a considerable amount of money sitting in cash because they lacked confidence about investing in the market.

Together they realized that while they were making good livings, they did not have a plan in place to manage their debt, save for their children’s college education and set money aside for their own retirement. They came to their first appointment somewhat overwhelmed and in need of a comprehensive plan for their future.

How we helped:

During their first meeting, Rachel & Andrew reviewed their personal and professional goals and objectives with a member of our advisory team.  It soon became clear that they needed a comprehensive plan to effectively manage their total financial situation.

Together, they decided that the emphasis should be placed on earmarking an appropriate portion of their cash reserves for emergencies, followed by implementing a savings strategy for their future and for their children’s education where they could put excess cash to work. Our Bloom Advisors team worked with Rachel & Andrew on the following:

  1. Financial Planning: We assessed their overall financial situation and created a detailed plan which provided a roadmap for paying down debt and saving for their short and long-term goals.
  2. Investment Management: We worked with Rachel and Andrew to determine their risk tolerance and created an individualized portfolio that reflected their goals and objectives.
  3. 401(k) Management: Rachel had a 401(k) through her job that hadn’t been maximized to its full potential. Our team reviewed the investment options and selected funds that were more in line with their goals.
  4. Estate Planning: Our legal advisors worked with Rachel and Andrew to draft an estate plan given that they have two small children to care for. At first, the conversations around creating these kinds of documents was emotional, but our legal team worked with them to ensure that the process was simple and uplifting.
  5. Insurance Review: Our advisors recommended Rachel and Andrew invest in term life insurance and reviewed quotes that they received from different independent insurance brokers. While we do not sell insurance, we like to work with clients to collect and review quotes from agents. Especially with insurance products, we want to ensure that our clients are never being taken advantage of.
  6. College & Education Planning: Since Rachel and Andrew expressed a desire to start saving for their children’s education, our advisory team helped them establish 529 college savings accounts for both their children in a tax-efficient manner and choose appropriate investment options. We developed a plan for them to make monthly contributions to these accounts.

By basing their planning decisions on mutual goals and the financial interests of their family, Rachel and Andrew were able to implement a plan they could follow successfully. Now they are able to focus their energies on their family and careers and are comfortable that they are well on their way to building their financial future.