Financial Planning Scenario – Young Adult

John is 30 years old and has just begun saving. John knows he needs to begin taking steps that would allow him to reach his goals at various stages of his life. He has questions that require objective and unbiased answers.

His questions are:

  • Should I enroll in my 401k?
  • How much should I save into my 401k?
  • How should I allocate my 401k?
  • What other workplace benefits should I consider?
  • Do I need life insurance? Do I need disability insurance?
  • What other savings vehicles should I be using?
  • How should I save for major purchases in the near future, such as a car and a home?
  • How should I handle my student loans?

John doesn’t have much saved yet but knows he needs a plan to get him on track. We would recommend our Financial Foundations service for John. Some of the steps we would likely recommend are:

  • Provide John with a guide of what he needs to do to accomplish his major goals.
  • Create a savings plan for John to develop an emergency fund.
  • Develop a personalized financial plan to include a new car and home purchase within the next ten years while building a nest egg for retirement.
  • Go through his workplace benefits enrollment process together, so that John would feel confident that the decisions he makes align with his financial plan.

By helping John with his concerns, he can focus on developing his career, while knowing that he is on a path to meeting his financial goals!

The scenario presented is hypothetical in nature, and not intended to be a testimonial or endorsement of Partners in Financial Planning LLC. This scenario is intended to illustrate the services we offer, but does not represent the results or experience of actual clients. The strategies discussed are not appropriate for everyone and should not be considered investment or tax advice. Clients should review their unique situation and financial needs with a qualified advisor and inquire about the various benefits and risks involved with specific services and strategies.