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MOCK CLIENT SCENARIOS

The Harpers

Growing Family

Client Ages: Andrew (35) & Julie (35)

Children: Olivia (5)

Occupation:  Andrew (Physical Therapist) & Julie (Project Manager/Consultant) 

Combined Household Income: $300,000

The Harpers

Growing Family

Client Ages: Andrew (35) & Julie (35)

Children: Olivia (5)

Occupation:  Andrew (Physical Therapist) & Julie (Project Manager/Consultant) 

Combined Household Income: $300,000

Situation:

On the surface, the Harpers seemed to be doing very well for themselves. They had growing and successful careers, recently bought their first home, and had a young and healthy family. If only it were that simple. With a young child at home and two demanding careers, life was starting to get extremely busy. Feeling increasingly overwhelmed with their finances, the Harpers needed some help.

Concerns:

  1. Saving for Olivia’s future college tuition 
  2. Planning for what happens if either one of them were to become disabled 
  3. Reducing their annual tax bill 
  4. Properly investing their assets and retirement accounts 

Through the Activate Your Wealth Process, the Harper’s were able to get a grasp on their financial household and take advantage of opportunities they didn’t even know existed!

Solutions:

  1. Refinanced their Mortgage to a Lower Rate
    • The Harpers dropped their interest rate from 4.8% to 3.8% which saved them roughly $230 per month! With so much going on in their lives, they had not even considered the interest rate on their 30 year mortgage. 
  2. Opened a 529 Plan for Olivia
    •  Instead of saving for college in a taxable brokerage account, they were now funding a 529 plan every month. This gives the Harpers access to tax free growth and tax free withdrawals for Olivia’s education. In a brokerage account, they were subject to current taxes on dividends/interest and capital gains tax on any realized gains! 
  3. Maxed out their 401k Contributions to Further Reduce their Tax Bill and Save for Retirement
    •  The Harpers were taking advantage of the 5% company match that both of their employers offered but they were eligible for further contributions. Given that they were building high levels of cash in their savings accounts, this was a golden opportunity they did not know existed. 
  4. Reallocated the Investments in their 401ks
    •  The Harpers were very conservative in their investment approach given their retirement goal of age 65. Only 50% of their 401ks were in the stock market. We were able to reallocate their 401ks to line up with their long term retirement goals and high risk tolerance. 
  5. Got Approved for 2 Affordable Long Term Disability Insurance Policies 
    •  The Harpers both had short term disability through their employers but never thought about long term disability. As high income working professionals, their biggest asset was the ability to work. Now that income was protected. 

Results:

Now the Harpers are able to focus on their careers and family without having anxiety over their finances. They have a plan in place and a partner to rely on when something comes up.

Additional Mock Client Scenarios:

Check out our Mid Career Professionals and Young Professional  mock client scenarios!  

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