Young Wealth Accumulator

A young business owner’s accountant introduced him to us because he was accumulating a lot of cash without an investment plan.

The Situation

  • 35 year old business owner, planning to get married
  • $50K of outstanding student loans with interest rates as high as 6.55% that were not tax deductible
  • $1M in the bank, all held in cash
  • No IRA or Roth IRA
  • No disability or liability insurance
  • No estate plan
  • Lived in a rented apartment, interested in purchasing a house
  • Owned out-of-state property with a high interest mortgage

Our Approach

  • Paid off clients’ student loans from cash in the bank
  • Implemented a diversified investment plan for capital growth
  • Funded backdoor Roth IRA contributions
  • Acquired umbrella liability insurance & revised existing auto policy
  • Determined home purchase affordability with financial planning projections
  • Refinanced out-of-state mortgage and saved 3.875% in annual interest expense

Collaborating with Specialists

  • Worked with his accountant to determine the most tax efficient means to finance the home purchase, maximize pre-tax retirement savings and improve overall financial plan
  • Introduced him to an estate planning attorney to execute a full set of documents, establish a pre-nuptial agreement when he got engaged, and retitle his out-of-state property
  • Introduced him to an insurance specialist to acquire a disability insurance policy and discuss life insurance needs

Significant Results

  • Increased cash flow
  • Sound investment portfolio matching clients’ financial goals
  • Bucket of tax-free money growing in a Roth IRA
  • Mitigated risks associated with disability, liability and premature death
  • Better prepared and organized for upcoming life changes
  • Reliable team of advisors managing his finances while he focuses on running his business>