Client Situation

D. and K. are both 42 and have three children. While they both love their jobs and they pay well, they have started to notice as the kids get older, their expenses are increasing too. They want to comfortably afford their children’s education and activities and at the same time build their retirement savings. Since work is stressful, they also want to continue taking regular holidays with the family.

How we Help

We would work with D. and K. to complete a cash flow analysis with our professional level software to see how they were spending their money. We would then prepare a Cash Flow Plan, balancing their increasing expenses without substantially cutting back on their lifestyle and still continue to fund their Retirement Plan, and also put in some reserves so that are better prepared for any unexpected expenses.

We would complete a Personal Risk Tolerance Questionnaire to determine if the investment risk they were taking matched what they were comfortable with and with what was appropriate to meet their needs. We would then review their current Investment Portfolio to make sure it was aligned with their risk targets and financial goals.

We would also analyze their insurance coverage to make sure that it protected their family from the loss of income from either spouse which could potentially derail their Financial Plan.

The Moral of the Story: Income can be increased through better investment strategies.

The post Cash Flow Planning and College Funding appeared first on Southwestern Retirement Planning Advisors - Retirement Planning Chandler, AZ.

Client Situation

M. and S. are a younger couple who were looking to take a big financial step and purchase their first property together. The couple both worked full time they also wanted to enjoy their lifestyle. They are renting a small apartment together that does not use up much of their available income. They have accumulated a significant amount of cash for the down payment on a single family home but they are unsure whether they should purchase a property as an investment to provide some income and appreciation or whether they should purchase it to live in it. We would offer to help with the analysis to assist them with their decision.

How we Help

The couple is fairly diligent at budgeting which had allowed them to accumulate their savings. We would weigh the pros and cons of having an investment property vs. a principle residence, and the effect this would have on a mortgage need to purchase the property.

We would analyze the implications of Financing, Taxation, Cash Flow, Long Term Capital Growth and the risk of holding an investment property that would be difficult to sell quickly if they were to find themselves in financial difficulties. We would also identify the need for personal insurance once their property was purchased, to protect them against the possibility of not being able to meet their monthly mortgage payments due to an unexpected loss of income.

We would present the couple with some scenarios on what each strategy may look like, so they would be able to make a decision on what would be best suited for their lifestyle. We would then refer them to a mortgage broker who would assist them in obtaining a loan and an insurance broker to obtain property and liability insurance on the home.

Finally, we would assist them in developing a Cash Flow plan to maintain their desired lifestyle and to prepare for future Real Estate investment purchases.

The Moral of the Story: Proper Financial Planning Can Reap Rewards.

The post Real Estate Purchases appeared first on Southwestern Retirement Planning Advisors - Retirement Planning Chandler, AZ.