WHO WE SERVE – PROFESSIONALS

HOME  >  WHO WE SERVE  >  PROFESSIONALS

OVERVIEW & GOALS

Professionals Family
John and Mary, 38 and 42 respectively, are working professionals in the San Diego region. John is a senior engineer at Qualcomm and Mary is a data scientist at a small biotech company. They would like to save for their daughter and son’s college education, but they are not sure how much they should set aside for this goal. Furthermore, Mary has a significant number of restricted shares in her company and would like to know when and how to liquidate this position. She has stated that her company is considering going public in 2-5 years. Finally, they would like to explore the idea of purchasing an investment property before they retire in their early 60s.

RESOURCES & FACTS

Their primary home is worth $850K with a mortgage balance of $510K. They both have retirement plans with a combined balance of $335K and brokerage accounts worth $750K. Mary’s restricted stock is worth $150K with significant upside potential. They have a two 529 plans with a $35K and $52K balance respectively.

OUR RECOMMENDATION

Our first goal was to ensure that John and Mary had a well-funded emergency fund. While this was not an immediate goal of theirs, we found that their liquid cash balance was too low. We also recommended that they begin to defer the max amount to their 401(k) plans and to invest a specific budget surplus amount to a taxable trust account. We determined that their current 529 plan contribution amounts were too low and recommended that they increase this amount to $851/mo for their daughter and $697/mo for their son.
Regarding Mary’s restricted stocks, we believed that it was too early to begin liquidating her shares. Because John and Mary were on track to fund their financial goals, any upside potential to these shares would only be a positive benefit. However, because financial plans are a living document, we planned to revisit this strategy annually.
Given John and Mary’s cash flow needs, we also determined that they can begin to look at investment properties in 2-3 years. We plan to assist them by creating cash flow projections and valuation analysis’ on future potential properties.

READY TO TAKE THE NEXT STEP?

Schedule a Complimentary 15-Minute Phone Call To Learn More