Sarah & Jake: A Couple with a Passion for Travel and a Drive to Build Wealth
Primary Goal: Novice investors who want to create wealth, save for retirement, and have enough for their passion for travel while focusing on their careers and providing for their future family.
Sarah and Jake a couple with a passion for travel and a desire to create wealth. At the ages of 34 and 35, Sarah and Jake reached out to us to help them navigate their financial journey and build a solid foundation for their future.
Sarah, an educator who is a school administrator at her local school district, is currently the breadwinner for the family. Still, she was concerned about her pension from the school district would be enough to support their future financial goals. Jake, who is finishing his degree in engineering, is eager to start his career and contribute to their household income. Still, their current financial situation makes them uncertain about their future.
Sarah and Jake are novice investors and have never invested their money before. They wanted to create passive income, save for retirement, and have enough to continue their passion for traveling the world. They also found out they would have their first child, which added an extra layer of financial planning and security.
To address these concerns, Wolfpack Wealth Management provided a solution to help Sarah and Jake focus on their careers and passion while leaving the complex work to us. We worked with the couple to educate them on how their finances are integral to their lives. We explained that creating a financial plan will help them achieve their goals while considering their future needs.
We recommended direct investment management, allowing us to manage their investments and make decisions on their behalf. This would give Sarah and Jake the peace of mind that their investments were well cared for and allow them to focus on their careers and travel.
Additionally, we recommended setting up a 529 account for their child's education; a 529 account is a tax-advantaged savings plan designed specifically for educational expenses, ensuring that their child has the funds needed to continue their education in the future. In addition, they took advantage of starting early to fund their child’s expenses to not worry about their child’s probability of taking out student loans in the future.
Lastly, to fund Jake’s current education, we also recommended his own 529 account to pay for portions of his current education. The benefit of the 529 account is that any interest and growth are shielded from taxes if used for education. Another reason to use a 529 is that any unused funds can then be transferred to their child, and now, with the passage of Secure Act 2.0, any unused funds may be transferred to a Roth IRA, a retirement account with tax-free distributions. Therefore, allowing retirement funds for the future.
Sarah and Jake were thrilled with the financial plan and the peace of mind that came with it. They could focus on their careers, travel the world, begin planning non-financial things when having a child and build wealth for their future. They also felt confident that their child's education was taken care of and that their retirement savings were on track.
At Wolfpack Wealth Management, we understand the importance of financial planning and investment management for young families like Sarah and Jake. We are proud to have provided a solution that helped them create an actionable plan for their financial goals while allowing them to focus on their passions and careers.
Note: A client or prospective client should construe no portion of the content as a guarantee that they will experience the same or a certain level of results or satisfaction if Wolfpack Wealth Management is engaged to provide advisory services.