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Woman Working

B is an entrepreneur, mother, and wife. Her husband T is a shift worker. Although T supports B on his days off, B usually runs from morning—waking up the kids, packing their lunches, and making sure they’re dressed and ready for school—to night—talking to the kids about their days after school, preparing supper, and getting the kids ready for bed.

While the kids are at school or once they’re in bed, B looks after the house and does her business activities. She has very little time to manage her household and personal finances. In fact, like most entrepreneurs, she leaves her finances to tax time, when she packs up her receipts and bankbooks, and drops them in her accountant’s lap.

I recently caught up with B for a brief meeting to discuss her concerns about finances, the flourishing business, and her family responsibilities. We talked through her current situation and discussed her plans for the future. We then examined the gaps between her current finances, plans, and responsibilities, and her future goals. We prioritized these gaps as follows: High monthly expenses, concern and uncertainty for her children, if anything were to happen to her or her husband, and long-term business and personal goals.

Our first solution was to address the family’s current banking situation including their mortgage, loans, and lines of credit. I made a recommendation to use a home equity line of credit and eliminate the loans and unsecured line of credit. Next, we looked at B and T’s principal mortgage, eliminated the bank’s mortgage life insurance (once we had found a suitable replacement and it was in place), and used those savings to increase the principal portion of their monthly mortgage. These two steps cut their monthly payments by one third and their interest costs by more than 22% over the life of the mortgage, while also reducing its duration. They saved money and improved their cash flow.  

Next, we looked at different protection solutions to replace the bank’s mortgage life insurance. We saved money on the premium cost while ensuring a better estate for B’s children should either or both parents pass away. We discussed writing a will, assigning a power of attorney and personal directive, as well as, finding a suitable executor for the estate, and a power of attorney and guardian for the kids. B now had a series of written documents covering what would happen in the event of a tragedy, which clearly outlined her wishes and instructions for her estate and the children.

Lastly, we revisited B’s savings and investments. We compared what she currently had set aside to her future plans. There was a glaring shortfall in her amounts accumulated versus her desires. We talked about an automated pay-herself-first program (from her sales) that would be convenient, easy to check and monitor, and flexible to meet her fluctuating business revenue. B was thrilled she could adjust her savings and set money aside out of sight and out of mind. I recommended an appropriate investment strategy tailored to B and her lifestyle. She agreed and implemented it immediately.

In a very short period and with minimal time commitment from busy B, she had structures and processes in place to manage, control, and stay on top of her finances, both personal and business. She now has a funding program for her growing business, money set aside for personal goals, and a real sense of calm and reassurance through a better structured protection plan combined with estate planning and up-to-date documentation.

B feels invigorated to face her daily activities and cherish these years with her kids, while still focusing on her growing business success.

Check out our website www.rodgerswealth.com for more ideas, tools, or send me an email if you need help putting your financial house in order. With over 22 years of real life experience, we’ll be pleased to work with you, too!

The decision to purchase life insurance should be based upon long-term financial goals and the need for death benefit. Life insurance is not an appropriate vehicle for short-term savings or short-term investment strategies. While the policy allows for loans, you should know that there may be little to no cash value available for loans in the policy’s early years. Securities-related products and services are offered through Raymond James Ltd., member-Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member-Canadian Investor Protection Fund.