Client Story: The Young Savers
Married; 2 Children
Not “enough” assets for “big bank” firms
Want to start investing
Sean and Linda are successful business owners in their mid-thirties with two young children. They both have high incomes, but not large investment or savings balances because they reinvest most of their money into their business and their family. However, they wanted to make investing more of a priority. As new investors, they naturally had a lot of questions and needed personalized advice.
They approached their parents’ advisors (both of whom worked for “big bank” firms), but they quickly realized that they couldn’t meet their minimums because they didn’t have enough assets. Many of the traditional investment firms can’t or don’t want to serve clients like Sean and Linda because it isn’t profitable for them to do so. Their fee is typically a percentage of assets under their direct management, so they need to have high asset minimums.
Sean and Linda were frustrated and felt ignored. They wanted to make the right decisions to grow their assets, but they were told they didn’t have enough savings to access the advice.
How We Helped
Sean and Linda knew that they needed help from experts, so they called our team to see if we would take them on as clients. We love working with young couples or individuals – we refer to them as “emerging wealth” clients – who are just starting out on the journey to financial success. With the right guidance, these young, successful, disciplined savers will likely be our biggest and best clients in the future!
Our firm offers planning services specifically for emerging wealth clients like Sean and Linda. We begin every engagement with our “Goals, Expectations, and Concerns” exercise. Sean and Linda completed the exercise individually, and then we all came together to discuss their results to get a more complete picture of their financial situation and aspirations. This conversation enables us to create a Financial Goal Plan. Essentially, we analyzed Sean and Linda’s current assets and savings and then we showed them exactly what it would take to achieve their goals.
But, this is only the beginning. Sean and Linda knew what they needed to save, but they didn’t know how to get there. They were facing a number of big decisions and tasks to execute on those decisions. To help, we presented them with a list of to-dos. This list was long – it’s not always easy to reach your goals – and included items like:
Determine your risk tolerance and establish your asset allocation policy
Set up an online service to organize all of your accounts
Explore the feasibility of a company retirement plan
Explore college funding plan options
Review company benefits and fill any gaps with private arrangement
Not surprisingly, they were a bit overwhelmed, which is completely understandable. So, instead of giving them a 200-page generic financial plan and setting them loose, we sat with Sean and Linda and created a customized plan for how we were going to help them address the action items over the next year. We then helped them with each and every step, making sure they were done right and on time.
Now, Sean and Linda have a strong financial foundation and a defined plan to guide them moving forward. They are able to invest in their business and their family, as well as plan for future goals, like paying for their children to go to college and preparing for retirement.
We continue to regularly meet with Sean and Linda – and we’re always available to answer their questions – providing them with the advice and guidance they need and holding them accountable on their journey towards success.
While every client’s situation is unique, Sean and Linda’s story contains some key lessons that other young savers should consider:
- It’s never too early to start investing
- There are firms who will work with you – and will care about you – even if you don’t meet minimum asset requirements
- The best way to guarantee success is by creating a plan and then sticking to it
- The upfront work of laying the foundation for the plan – all of those to-dos – may seem overwhelming and frustrating but is critical to achieving your goals
If you’re like Sean and Linda, and want to enter the world of investing but need guidance to get started and to maintain the strategy, we can help. We’ll deliver a customized investment plan and the support you need to stick to it to achieve your greatest goals.