YFP Planning Case Study #2 - The Andersons


1	Name	Occupation		Age	Salary	Supp Income	Marital Status	Residence	Jersey City, NJ		Gross Income (annual/monthly/net)		$290,000	$24,167	$12,325	Expenses (fixed/variable/savings)	$6,315	$2,200	$3,333	50/30/20 (fixed/variable/savings)	51%	18%	27%
2	Fiona Anderson	field medical director		46	$155,000	$0	MFJ	Living Situation	3BR SFH they purchased in 2008. Paid $420k w/20% down, 6.0% int rt. Used a conventional loan, refinanced in 2015 to 4.0%
3	Roy Anderson	pharmacy manager		48	$135,000	$0		Goals	1	They both want to pay for all 4 years of undergrad for Michael and Paul (upped contributions to 529 recently, but not sure they'll have enough).
4	Michael Anderson	son		16					2	They both want to retire in the next 10-15 years.
5	Paul Anderson	son		14					3	They'd like to downsize and move to FL when they retire.
6									4	Fiona thinks they have too much debt @ this stage (i.e. still paying on the student loans, mortgage won't be paid off for another 23 yrs).
7	Net Worth Statement								5
8	Assets				Liabilities			Debt	1	Personal loan	$1,000	Kitchen remodeled cost $52k; used HELOC at 5%.
9	Cash				Short-term				2	Car notes	$750	Int rate of 3.5% for Fiona, 4.25% for Roy.
10	Checking	$20,000	JT		Credit card(s)	$0	JT		3	Student loans	$565	Refinanced to a 10-year at 4.25% 5 years ago.
11	Savings	$50,000	JT		HELOC	$43,000	Fiona		4	Mortgage	$2,500	30YR fixed mortgage, 4.0% int rate (7 years in).
12								Wealth Building	1	401k	8%	$12,400	Fiona: (4% EE + 4% ER match), 2035 target date funds.
13	Investment				Long-term				2	401k	8%	$10,800	Roy: (4% EE + 4% ER match); 2035 target date funds.
14	Trad IRA	$19,500	Fiona		Car note	$25,000	Fiona		3	529	$1,000	$12,000	$500 for each son. No NJ income tax deduction ($200k+ AGI).
15	Roth IRA	$36,500	Roy		Car note	$23,000	Roy		4	Taxable	$100	$1,200	RSUs as part of Fiona's comp (never touched it so 100% in company stock).
16	401k	$425,000	Fiona		Mortgage	$330,000	JT		5	JT savings	$100	$1,200	To JT savings (rainy day, Michael graduation trip fund).
17	401k	$459,000	Roy		Private student loans	$30,000	Fiona		6	Trad	$200	$2,400	Not funding the Roth, but Fiona's Trad IRA (in a balanced fund).
18	401k (old)	$15,000	Fiona					Wealth Protection	1	Ind/group term	$1,000,000	$150,000	Fiona: 20YR term purchased 5 years ago.
19	Taxable (RSUs)	$125,000	Fiona						2	Ind/group term	$1,000,000	$125,000	Roy: 20YR term purchased 5 years ago.
20	529s	$80,000	JT						3	STD/LTD	60%	60%	Fiona: own occupation for 2 yrs, then any occ until medicare age through employer.
21									4	STD/LTD	60%	60%	Roy: own occupation for 2 yrs, then any occ until medicare age through employer.
22	Home								5	Prof liability	Roy carries his own policy (~$130 per year).
23	Primary	$540,000	JT						6	Estate	Have a will that was done when Michael was born. No living will, trusts or POAs.
24								Tax	1	Currently use an accountant, but not sure he's helping them maximize their deductions. NJ state income and property taxes are killing them.
25	Total Assets	$1,770,000			Total Liabilities	$451,000			2	Typcially, owe taxes every year.
26									3	Concerned about capital gains on Fiona's RSUs, use this for the boys' school or retirement?
27					Net Worth	$1,319,000		Misc	1	They're conflicted about how much to put towards college vs. their own retirement (can they retire in 10-15 years).
28	Notes								2	They expect to travel a lot more in retirement.
29									3
30									4
31	Topics of Discussion	1	Education vs. Retirement.						5	Do they have enough to retire? When to take SS?
32		2	RSUs: what are they for? Diversification? Address LTCG.						6	Should they focus more on the debt?
33		3	Education planning (moving from accumulation to w/d in a few years, how to frame to kids).						7	Reallocation of investments.
34		4	Estate docs.						8