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MOCK CLIENT SCENARIOS

The Barnett’s

Mid Career Professionals

Client Ages:  Steve (45) & Leah (43) 

Children: Kimberly (17) & Bryan (13) 

Occupation: Steve (Dentist) & Leah (Industrial Engineer) 

Combined Household Income: $450,000

The Barnett’s

Mid Career Professionals

Client Ages:  Steve (45) & Leah (43) 

Children: Kimberly (17) & Bryan (13) 

Occupation: Steve (Dentist) & Leah (Industrial Engineer) 

Combined Household Income: $450,000

Situation:

The Barnetts were at an interesting point in their lives. They were in the heart of their careers with kids approaching college. Their focus still wasn’t retirement but they still wanted to know they were on track. Like a lot of people at this stage of life, they wanted to enjoy their life now with an eye towards the future. Even though they had done a great job preparing to this point, they wanted to hire a professional to check in on their situation.

Concerns:

  1. Maximizing savings on college costs for Kimberly
  2. Reducing their tax burden from investment accounts 
  3. Optimize their Investments 

Through the Activate Your Wealth Process process, the Barnett’s were able to gain clarity on their financial standing.

Solutions:

  1. Introduced College Savings Opportunities 
    • Kimberly had a significant amount of money saved in her own name to pay towards her college costs. We advised the Barnett’s to spend that money first in order to maximize student aid. 
    • Performed a cost analysis across 3 schools to detail the costs associated with each (tuition, room & board, average student aid awarded, cost of living, etc.). This helped the Barnetts make an educated decision on college for Kimberly. 
    • Advised the Barnett’s that any excess money in Kimberly’s 529 plan can be transferred to Bryan for his education. This changed the way they thought about funding college for Bryan.  
  2. Reduced the Taxes & Fees on their Brokerage Account
    • The Barnetts had been working with another adviser who managed their brokerage account. We were able to reduce the expense ratios in the account and save taxes by reducing frequent transactions and utilizing a tax loss harvesting strategy. The Barnetts had no idea just how expensive this brokerage account was!  
  3. Created a Household Investment Allocation
    • By consolidating all of the Barnetts assets into our financial planning client portal, we were able to get a holistic view of their current investments (401ks, Cash, Brokerage Accounts, IRAs, etc.). We were then able to reallocate all the accounts to one target and simultaneously minimize taxes and fees. Through the client portal, the Barnetts were able to track their investments over time and see everything in one place (even though Activate Wealth was not managing all the accounts). 

Results:

With Activate Wealth in their corner, the Barnetts were able to enjoy their life now and know they are on track for their future goals!

Additional Mock Client Scenarios:

Check out our Growing Family and Young Professional  mock client scenarios!  

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