Henry, age 37, is a single dad to a 3 yearold daughter. He recently got a job with a startup company making a much higher salary and bonus than he previously made, but hasn’t yet been able to save much while paying down his student loans and the credit card debt he incurred after his divorce. He has a small trust fund left to him by his grandfather, but it can only be used in emergency situations. He’s hoping to buy a home within the next three years or so, and is hoping to pay down his student loans while he saves for a down payment so that he qualifies for a mortgage more easily when the time comes. He wants to be able to cover part of the cost of his daughter’s first four years of college.
Jamie, age 57, has a partner Adrian, also age 57. They have grown children who are self sufficient. They would both like to retire in about 10 years on $80,000 per year, already have a good sized emergency fund, and beyond their normal retirement costs are also concerned about covering health care costs during retirement since neither will have insurance coverage outside of Medicare. Their net worth is just over $1 million, including real estate values of about half of that. They have two properties, one their home and one a rental property. The net rental income is not that great, so they are open to selling the investment property to help fund their retirement costs.
Sally, age 67, is married to John Smith, age 63. Both are already retired and have living expenses of about $200,000/year. They have approximately 10 months of living expenses in a cash account, with a total net worth of $5.5 million. Half of their net worth is from the value of their Florida primary residence and their Vermont summer home. Sally has an annuitized annuity that pays out $60,000 per year on top of their combined Social Security incomes of about $60,000 annually. They want to make sure their assets and passive income will continue to support their lifestyle needs through the end of their lives, and perhaps leave behind a legacy to their children and grandchildren.