The Edwards Family
Case Study #1
Top 3 Goals:
- Make a wise choice among different offers from colleges for financial aid
- Evaluate compensation and benefits for a new job offer for Dad
- Keep taxes low while Mom re-enters the workforce
The Edwards family has older children who are on the cusp on adulthood.
"Train up a child in the way he should go; even when he is old he will not depart from it." Proverbs 22:6
They want to make sure their oldest makes a good choice about college next year balancing academic opportunity with the financial impact of the school.
Balancing careers for Mom and Dad while still taking care of their children is a priority.
Why the Edwards family decided to get help from Intrepid Eagle Finance
Dad has spent 9 years at the same company and recently received an offer from a competitor. With college expenses on the horizon, Dad is worried about making a job change at a time when his children need the family’s financial resources.
He wants to make a wise decision on the differences between his current benefits and what the prospective employer offers.
Mom, after staying home for a number of years, is considering going back to the workforce. The family is concerned about how this will affect taxes and if they’ll be bumped into a higher tax bracket.
The family is also comparing scholarship offers from 2 state schools and one private school for their oldest.
The Path Taken
The family was not sure where to begin. They wanted to make wise decisions, but with everything going on in their lives, had limited time to focus on financial questions.
To help frame the decision-making process, our initial step was to outline the different issues and how each issue intertwines with the family’s values and priorities.
Collaborating with the family, our process involved:
- Evaluating college costs over the coming years for both children
- Analyzing the family’s tax situation both with one income and the possibility of two incomes
- Summarizing the differences between Dad’s current job and the offer he’s considering including benefit package differences
Laying out the decisions along with options helped to remove a great deal of stress around these issues. The family was able to make decisions armed with a better idea of the impacts on their finances.
Where they are today
Dad decided to take the job offer. The breadth of retirement benefits the new company offered were better than he had first thought and will help bring the family closer to retiring earlier.
Mom decided to re-enter the workforce after learning about ways the family can reduce their taxes this year and going forward.
The family made a decision about college selection for their oldest. With a reliable view of what tuition and other costs look like in the coming years, the family is much more confident about paying for school.
They’re also taking advantage of a tax credit they were unaware of related to their college students. This translates into roughly $20,000 over 4 years* the family can use to offset the cost of college.
The Edwards family now has confidence that they can tackle what’s happening now while balancing future goals down the road.
Please Note: This case study is a hypothetical illustration and does not describe an actual Intrepid Eagle Finance client. No part of this case study should be construed by a current or prospective client as a guarantee of results, including, but not limited to investment performance. This illustration is educational in nature and should not be interpreted as advice for anyone's specific financial situation.
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*Assumes the family is eligible and claims the American Opportunity Tax Credit for 2 students attending 4 years of post-secondary education.