Small Changes That Made a Big Difference
We love celebrating with each of our clients and their successes: goals met, challenges overcome, increased net worth. Many of these successes come with consistent small changes over a period of time.
As Mark Twain said, “The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.”
An example would be a client who came to us in her early 60’s, single and having as her top priorities visiting family, worrying less, socializing more, and securing a retirement plan for herself. Her values included volunteer work, personal development, and donating. Although she wanted to retire, begin taking social security early, and stay in her home, she was faced with credit card debt on a high interest card, a mortgage, and no plan for medical coverage until Medicare kicked in at age 65. She also needed to determine if taking half of former husband’s social security would be a better option than her own since they were married for at least 10 years. Over time, she switched to a 0% interest credit card and was able to pay off her debts by cutting expenses and increasing her income with a higher paying job. By postponing social security income, signing up for healthcare during open enrollment, and reallocating her investment portfolio, she has been able to stay in her home and increase her net worth. Instead of needing to withdraw from her retirement assets early, she is now contributing to and increasing it - and is now looking forward to retiring with her financial plan in place.
Another example of success is a young married couple. Their focus was on building a strong family, traveling, paying down their home, saving for their dream home, and retiring early. They began their financial plan each having employer retirement accounts and Roth IRAs, a new mortgage, and two children with plans to adopt another child. After completing their estate planning, they accelerated home payments, started college savings accounts (529s) for each of their now three children, maxed their retirement contributions, and increased funding to their HSA. Step by step they have paid down over 45% of their mortgage, increased their net worth, have planned vacations, and are on a path to purchase their dream home.
And one last example is a couple nearing retirement. Four years ago, in their mid-sixties, they wanted to continue working in their fields and prepare for downsizing, moving near family, and making sure they had enough to retire in a few years. The couple had two small college loans still left to pay for their children, a large mortgage, and credit card debt. He had a Long-Term Care policy and wanted to add one for his wife. They aggressively began paying off credit cards and college loans, planned for a wedding, and then used the now available money to max contributions to his 401k and their taxable account. This year they started paring back expenses to match lower income prior to retiring, planned a specific retirement budget, reevaluated insurance coverage needs during retirement, sold their home, and purchased a condo near family. During these last four years, they increased their investment accounts and their total net worth and are now beginning retirement with confidence.
We are proud of all of our clients’ progress and happy to be a part of those accomplishments. How can we help you meet your goals?