AXIUS - Case Study 1: Married, New Baby, Late 20’s

Case Study 1: Married, New Baby, Late 20’s



Tim and Sara recently had a child. Sara has decided to work part-time and Tim has recently started a new job. Sara wondered if her working part-time would fit with their cash flow and Tim was unsure what to do with his old 401(k) plan. Both Tim and Sara were concerned about life insurance coverage and wanted help determining if they had enough coverage. They also wanted to discuss education savings for their child.

Our Recommendations

A cash flow analysis would allow Tim and Sara to review their budget and determine a monthly savings amount. A college cost review would also help determine how much will need to be saved monthly to fund their child’s education. A portion of the monthly savings amount could be put into a new investment account and the remaining portion would be used to fund a new 529 College Savings plan for their child. A Rollover IRA should be created to consolidate Tim’s old 401(k) plan and allow for greater investment options. A Survivor’s Needs Analysis is recommended to determine if Tim and Sara have sufficient life insurance coverage. Both Tim and Sara should increase their life insurance coverage to fully fund their child’s education needs in the event of premature death.