Young Professional

*These fictitious scenarios are designed to generally illustrate how we may provide our services to a client. Keeping in mind that no two clients, situations, or experiences are exactly alike, these scenarios are not to be construed as an endorsement of the Firm by any of its past or current clients, nor any assurance that we may be able to help you achieve the same results.

Dr. James Sebring is a 26-year-old second-year Orthopedic surgery resident. He has been married for two years, and his wife is four months pregnant. Several insurance salesmen have approached him about purchasing life insurance for his family. He is busy, and overwhelmed by the options and phone calls. He would like help making sure he has taken care of all of the basics, and that he is managing his finances for his future. They also would like to explore whether buying a home is a good decision for them.

Overview

Dr. James Sebring

• Age 26
• Orthopedic surgery resident
• Annual Income $42,000/year
• Completion of training: 3 years
• Likely starting salary: $375,000
• Partner salary: $525,000

Melissa Sebring

• Age 26
• Stay-at-home Mom
• 4 months pregnant

Family Finances

• Educational Debt: $165,000
• Credit Card debt: $3,200
• Currently renting their home
• Investments: none
• Savings: $1,200
• No current life insurance, liability insurance, or estate planning

James’ & Melissa’s Concerns

• Purchasing life insurance for family protection
• Anxiety over their educational debt
• Should they buy a house now?
• Planning for his job after training
• What should they do with their savings and monthly surplus?

How We Might Help Dr. and Mrs. Sebring

James and Melissa thought that they needed help deciding on the correct type and amount of life insurance to purchase for their upcoming family addition. At an initial meeting, we would help them understand that a more comprehensive approach to their situation would be a better option and would hope to enroll them in our Young Professional Program. We’d gather their financial and personal information, and set up a meeting to help do the following:

• Price the appropriate amount and type of life insurance with an agent that would give them several estimates to choose from, and who would not try to sell them anything else
• Prepare an analysis that showed them that renting while in residency was a more sound financial decision for them. Additionally, it is important to set up a cash savings account so to prepare for a down payment on a home when residency is finished. We can help with calculations, decision-making and referral to a mortgage lender when the time comes to buy a home.
• Set up a meeting with an estate attorney who is reasonably priced to do the basic estate planning that they need
• Make a referral to an accountant to manage their state and federal tax returns
• Help them price and purchase renter’s insurance and a personal liability umbrella to protect their risk
• Set up an investment account and a savings/emergency fund account, complete with automatic savings plans at work
• Identify risk tolerance and asset mix for their investment policy
• Recommended that they delay starting a College Savings plan until he starts his practice
• Provide reassurance that their educational debt can be handled and paid off with a formal strategy once they have finished training

Our plan would be to invest their monthly savings as per the Investment Policy Statement, and meet with them annually. When he is closer to finishing his residency we will meet to help them review contract options and help with the decision for their new house and mortgage. As they transition to their private full-time practice we hope that they will continue to be long-term clients as we help them save and invest to reach their goals.

*These fictitious scenarios are designed to generally illustrate how we may provide our services to a client. Keeping in mind that no two clients, situations, or experiences are exactly alike, these scenarios are not to be construed as an endorsement of the Firm by any of its past or current clients, nor any assurance that we may be able to help you achieve the same results.  

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