How do we work with Business Executives…?

Tim and Maggie Smith:

Age 40

Kids:  Jack (10), Abigail (6), Henry (4)


Primary Goals:  

Ensure the decisions they are making with their money match their priorities.  


The Challenge:  

Tim & Maggie are like most of us.  They are busy with work and kid’s activities and think they are doing the right thing.  

  1.  They are saving for retirement in their 401(k)’s 

  2. Paying down the mortgage on their primary residence.  

  3. Trying to put some money aside for their kids college fund.  

  4. Have 401(k)s from previous employers.  

  5. Tim and Maggie are both doing well in their careers and are eligible to receive company stock as a performance bonus.  


The Approach:  

Tim and Maggie feel like they are on the right track, but would like some help organizing their assets and put them into perspective.  


After our first meeting where we discussed their priorities we linked their investment accounts in Right Capital along side their other assets to create a networth snapshot.  We also uploaded their previous two years tax returns into Holistiplan to understand their tax brackets and look for opportunities.  


From there we opened IRA accounts to roll 401(k) accounts from previous employers and invested based on their time horizon, goals and funding of other accounts.  


We also put a schedule to discuss the company shares they receive as they vest and make a decision whether to hold or diversify.  


From there we set up a plan to meet 3x a year to discuss: 

January/February:  Prepare for Tax time and plan to make remaining contributions before the filing deadline and discuss the coming year to account for any changes.  


May/June:  Ensure all beneficiaries are correct and review investment accounts.  Make sure they are on schedule with their savings plan.  If there were any surprises with their tax return ensure we account for them in the coming months.  


October/November:  Discuss open enrollment for their employee benefits and make any changes necessary.  Also inventory Life and Disability insurance and account for any shortfalls.  Prepare for end of year  and discuss coming year income.