The Client
Client: Alex + James Mack
Age: 40 / 41
Occupation: Project Manager / Software Engineer
Primary Goal: Manage stock options, save for their children’s college, and optimize retirement contributions
The Situation
Alex and James are a married couple in their early 40s, balancing the demands of their dual careers while raising two young children. Alex, a project manager, receives stock options as part of her compensation package, but she and James feel overwhelmed by the complexity of exercising these options and understanding the tax implications.
At the same time, they’re saving for their children’s education and want to ensure they’re making the right choices to fund college while still building their own retirement nest egg. They’ve been contributing regularly to their employer-sponsored retirement accounts but are unsure if their investment strategies align with their goals.
With busy jobs and family responsibilities, Alex and James feel like they’re constantly juggling priorities and worry they’re not making the most of their financial opportunities. They want a financial plan that simplifies their decisions and sets them up for long-term success without sacrificing the quality of their family life.
The Approach
We worked with Alex and James to create a comprehensive plan tailored to their unique financial situation and goals. Here’s how we approached their case:
- Stock Options Strategy:
We helped Alex navigate her stock options, developing a plan to exercise them in a tax-efficient manner while diversifying the proceeds into investments that align with their goals. - Education Savings Plan:
Together, we set up 529 college savings plans for their children, prioritizing contributions to take advantage of tax benefits and ensuring the plans would cover future tuition costs. - Retirement Optimization:
We reviewed their retirement accounts and adjusted their contributions to ensure they were maximizing employer matches and staying on track for their desired retirement timeline. - Investment Planning:
We created a custom investment strategy across their retirement and taxable accounts to reflect their goals, time horizon, and risk tolerance. This included balancing growth and stability to support their long-term financial security. - Cash Flow and Goal Prioritization:
We worked with Alex and James to analyze their cash flow, identifying ways to reallocate funds toward their goals while maintaining flexibility for family activities like travel. - Family Security:
We conducted a life insurance review to ensure they had adequate coverage to protect their family in case of unexpected events.
The Results
Alex and James now have a financial plan that simplifies their lives and puts them on the path to achieving their goals:
- Stock Options: A clear, actionable plan for exercising and diversifying Alex’s stock options, minimizing taxes, and growing their investment portfolio.
- Education Savings: Fully funded 529 plans for their children’s college education, giving them peace of mind about the future.
- Retirement Readiness: Optimized contributions and a diversified portfolio across accounts ensure they are on track for their desired retirement age.
- Investment Growth: Their investments are now aligned with their risk tolerance and goals, balancing growth and stability.
- Cash Flow Optimization: Adjusted spending and saving patterns allow them to contribute to their priorities while still enjoying family travel and activities.
- Family Security: Updated life insurance policies ensure their children are financially protected, no matter what.
- Peace of Mind: With their financial plan in place, Alex and James feel confident that their family’s future is secure and their priorities are aligned with their values.
DISCLAIMER: To protect client privacy, these case studies are hypothetical examples that illustrate the types of financial planning strategies we may recommend. Every financial situation is unique, and no guarantees can be made regarding future outcomes. Please consult a licensed financial professional (like Norsu) for advice tailored to your individual needs.
See More Case Studies
Parker
Parker, a 27-year-old energy engineer, needed a plan to balance student loan repayment, build an emergency fund, and start saving for retirement while preparing for career advancement.
Cory and Topanga
Cory and Topanga, a veteran couple in their late 30s, needed guidance transitioning to civilian careers, saving for their children’s college, and aligning their retirement strategies.
Kevin and Winnie
Kevin, a 58-year-old federal manager, and his wife Winnie sought a comprehensive retirement plan, including TSP withdrawals, Social Security timing, and estate planning.
Let's Get Started
Take the first step in getting set up for your best financial future! Schedule a free call using the link below and we’ll discuss your goals and a plan to get you there.