Case Study: Chris and Jessica

Chris and Jessica

Professional Millennials

Adulting – How to prioritize your finances after landing your dream job. 
401k’s, Stock Options and Buying your first house

Millennial Couple Walking Through the Park

The Dilemma 

Chris and Jessica came to Swell to help them organize their financial life. They had done a phenomenal job of earning income and accumulating assets but didn’t know what do to next. They had worked hard for their money but most of it was just sitting around in a big bank not earning much and they had no idea what was inside their 401k’s through their employers.  

Not knowing where to start. They sought the advice of a fiduciary and CERTIFIED FINANCIAL PLANNER ™ who could help answer all of their questions and tie everything together for them. Questions like, can we afford to buy a house? How much life insurance do we need? What do we do with Chris’ stock options, how are they taxed? Do we need a Trust and a Will? They wanted to be involved in the process and educated along the way.  

Our Recommendations  

Taking the time to understand their priorities, we intentionally curated a conversation around what their biggest dreams were what their deeper “WHY” was, and then … we listened. We wanted to get to know Chris and Jessica to better understand what was most important to them.  

From there, we began to assemble the puzzle pieces and lay the foundation for their financial plan. At the core, they both wanted more time with family and for their children to experience the wonder of travel they’ve been fortunate enough to experience. In naming these priorities, we were able to discuss different scenarios and trade-offs to accomplish their most fulfilled life.  

A comprehensive financial plan was created to include:  

  • A consolidated, low-cost investment strategy that accounts for their multiple goals of: 

    • Retirement Assets – Longer-term assets afford them the ability to take on greater risk

    • College savings plan to account for future costs via a 529

    • A brokerage account for the leftover money after maxing out their retirement plans (401k’s and IRA’s)

  • Stock Options – Working together, in collaboration with a local Certified Public Account (CPA), we were able to earmark a portion of Chris’ Restricted Stock Units (RSU’s) through his company when they next vest to use as a down payment on their future home and minimize taxes.

  • 401k Recommendations – Rebalancing Chris and Jessica’s 401k’s through their employer to maintain an asset allocation that is consistent with their other investments and will take on the appropriate risk needed to accomplish their long-term goals.

  • Life Insurance – Soon to be parents and first time homeowners, we wanted to design policies that adequately  protected them as their lives grow and evolve

  • Cash Flow planning to help figure out how to use their monthly surplus wisely to account for future changes in income when one of them decides to stay home and raise the kids.

  • Automating monthly investments so that it’s consistent and on-track each month. One less thing to have to think  about 

The Results  

Utilizing our financial planning software, eMoney, we were able to illustrate several scenarios where Chris and Jessica were able to buy a house, have one of them leave their job and continue prioritizing retirement and college savings.  

Now, Chris and Jessica have a clear picture of where they are today and where they are going. Best, they have a CERTIFIED  FINANCIAL PLANNER™ by their side to help them feel empowered in their decisions and adjust the plan as life changes.  

They finally have peace of mind around their finances and feel ready to start a family knowing that one of them can stay at home with the kids, without having to compromise on their lifestyle.