(Note: These case studies are hypothetical, do not involve a Modern Wealth Builders, LLC client, and should not be construed as a guarantee.)
Katherine and Eric: Equity Compensated Professionals
Katherine and Eric both have established careers. They just sold their condo in the city and moved to the suburbs, where they bought a home with a yard for the kids.
Katherine and Eric are both working professionals interested in seeking a better work-life balance to spend more time with the family.
However, they want to make sure they’re utilizing their household income to fully cover their children’s education while not sacrificing their financial goals.
They’ve accumulated a substantial net worth but have neglected to look into the appropriate insurance coverage to protect each other and their children from potential life, disability, and liability events.
Taxes are Katherine and Eric’s largest expense. Last year they were caught off guard by an AMT tax bill triggered when Eric exercised a large portion of newly vested incentive stock options.
They’re looking for guidance to avoid or minimize future AMT and other tax liabilities from their employer stock compensation.
Their employer stock represents a large portion of their net worth, so they’re also looking for guidance on how to get correctly diversified over time.
They want to work with a fee-only financial planner who they know is required to give them recommendations in their best interest and isn’t there to sell a financial or insurance product.
Katherine and Eric are both tech-savvy. They initially went to their parent’s financial advisor, but quickly realized he wasn’t utilizing modern technology and couldn’t relate to them.
Their conversations were also almost always strictly investment-related.
At MWB, they can work with a fiduciary who helps them with every aspect of their financial lives. MWB also utilizes the latest in financial technology so that they can track their financial lives with ease.
Furthermore, they like that the advisory fee they pay is straightforward, transparent, and doesn’t increase as their investment portfolio increases.
(High-Earner, Not Rich Yet)
Mia is extremely busy and advancing in her career rapidly. She’s worked for several tech startups and is receiving equity compensation that could become lucrative down the road.
In the meantime, she’s trying to balance paying down student loans, saving for a down-payment on a home, and maximizing tax-efficient accounts for later in life.
Understanding where her money is going and that she’s using her income in a strategic way to invest for her goals (both short and long term) is her primary concern.
She’s interested in becoming informed on her investment opportunities, but it’s not the main priority as she is just starting to build up her assets.
At Modern Wealth Builders, she can work with a fee-only financial planner whose only objective is to help her make smart decisions with her money.
She had previously tried working with a financial advisor, but they wouldn’t take her on as a client because she didn’t quite meet their ‘asset minimum.’
MWB charges a transparent advisory fee that would allow her to get ongoing financial guidance from an expert.