The Thornton Family
Case Study #2
Top 3 Goals:
- Balance Mom and Dad careers
- Decide on moving to a new home
- Provide for children's care if something happens
Overview
The Thornton family just had their sixth child. Dad stays on the road for work quite a bit. Mom has an online business where she sells crafts. Things have taken off in the last year.
The family has outgrown their current home and is considering a move, but are wondering how their budget will be affected.
The family believed they could move, but were unsure.
They wanted more clarity on how selling their current home and buying a new home would work from a financial sense.
The family was also concerned about how Mom’s growing craft businesses gave them a surprise tax bill last year.
They had questions like:
- How can we make sure our children go to the family member we choose if we both passed away?
- How can we avoid a surprise tax bill?
- How does a move affect our ongoing bills?
- What kind of steps can we take to make sure the children have money for college if one or both of us passed?
"Behold, children are a heritage from the LORD, the fruit of the womb a reward." Psalm 127:3 ESV
Why the Thornton family decided to get help from Intrepid Eagle Finance
The family believed they could move, but were unsure.
They wanted more clarity on how selling their current home and buying a new home would work from a financial sense.
The family was also concerned about how Mom’s growing craft businesses gave them a surprise tax bill last year.
They had questions like:
- How can we make sure our children go to the family member we choose if we both passed away?
- How can we avoid a surprise tax bill?
- How does a move affect our ongoing bills?
- What kind of steps can we take to make sure the children have money for college if one or both of us passed?
The Path Taken
The first step for the Thornton family was to talk with someone who would listen to their hopes and desires.
Time was always tight for the Thornton family and they needed someone who could help them make wise decisions without taking away from all their other commitments.
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
The family is in a better place with much better organization. The Thornton's meet quarterly or as needed with their advisor. They also sit down together twice a month to check their family financial dashboard we provide so everyone is on the same page.
The family was able to:
- Transition to a new home confident the new space fit into their budget
- Prepare better for taxes from Mom’s online business with tax estimates updated throughout the year.
- Establish a formal estate plan, in collaboration with an attorney, that cemented who their children’s guardian would be
- Create a plan to provide financial resources in the event one or both parents passed
- Reduce taxes with a new plan that means Mom can save for retirement and lower the amount of self-employment taxes the family pays
The family is still busy, but by partnering with an advisor they're able to focus on what matters with less worry about finances.
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.