40's & 50's - Planning for the Future
Personal finances can feel overwhelming when you’re busy with your career and family. Learn how Noyes Capital can help a successful couple get organized and deal with the competing demands of college funding, managing expenses, helping parents and planning for their own future.
The Challenge: Get Organized and Prioritize
Our representative clients, a pharmaceutical executive (age 49) and a human resources manager (age 47), have booming careers. While they both have high incomes, they had never felt secure as they watched the money go out often as fast as it came in. They have saved consistently in both their retirement accounts and taxable accounts. While they have growing assets, they also have high expenses, with two children preparing for college and parents that require more assistance. With parents aging, they have become the leaders of their extended families, which keeps them pressed for time.
The couple was referred to Noyes Capital Management by their CPA. In our initial meetings, they told us they had never had financial help before, but wanted to make sure they were on track to manage all the competing demands coming their way for their futures, their kids and their parents. They were busy so wanted full-service help and outside advice to direct their investments.
Strategy and Solution
Noyes Capital talked with the couple at length about their current situation, responsibilities and goals. We worked with them to automate their budget data so we could see it in one place. During our review, it became clear that their spending was too high. Between college savings, expenses related to their kids’ activities, sports and family vacations, there was little left at the end of the month. While they didn’t have to help their parents financially yet, they did need more of their time in helping with doctor’s visits, arranging home maintenance and other issues. Family vacations were expensive but important to them. The couple had recently bought a cabin in the mountains hoping it would be a place that their extended family could use and enjoy. They were quickly realizing that the expenses of maintenance, utilities and property taxes were more than they had bargained for.
Over the course of a few meetings and phone calls, we recommended a strategy. The strategy included:
- Preparing a full comprehensive financial plan to create a road map to the future they envisioned, with clear action steps to achieve their goals.
- Review of their tax situation to see where they can save on taxes to free up money to increase their savings.
- Cash flow analysis and budgeting to determine what areas they needed to cut back on, and strategies for the easiest way to handle that.
- Setting up a special fund to save for vacation and second home expenses, so it wasn’t a constant source of stress.
- Rollover of retirement accounts from previous employers into an IRA.
- Help with college planning and elder care issues.
- Estate planning to ensure their growing assets were protected.
With a clear picture of their financial life and a road map for what’s ahead, the couple now had clarity. This helped them feel less overwhelmed. Regular meetings with our team helped them deal with financial decisions objectively, so they stayed on track. Our team helped them feel more confident when dealing with their parents, knowing that they had an objective second opinion to help guide their decision-making. Most importantly, they felt they were on track keeping their family secure and planning for their own future.