Todd and Lana
Age 37 and 34
VP, Enterprise Software Sales, and Pediatrician
Todd and Lana are expecting their second child, and planning for all the changes that will come with that new bundle of joy (housing, living expenses, and transportation).
Todd and Lana aren’t new to parenting, but unlike the arrival of their first child, their second child will be a catalyst for not one, but many lifestyle changes.
They were able to raise their first child in their city apartment, but with a second child and newfound needs for home office space, they know that they need a larger single-family home.
As a result of upcoming changes, they have recognized several challenges:
Changing childcare situation - Relocation means that their nanny-share arrangement will no longer be feasible, and childcare for two children will be a considerably larger expense
Location matters - Lana works downtown, so access to mass transit is important, and living in a town with a competitive school district is also a top priority
Getting around - Previously they were able to get by using public transit only, but now they’ll need to purchase a car of their own to transport their children and to get to work.
While Todd and Lana know that they need to make some changes, they’re really not sure how to balance these different challenges at the same time.
They’re worried about overextending themselves in one area and then not being able to solve for the others. After all, they saw multiple friends who ended up having to cut their travel and entertainment budgets to cover childcare, or who moved into a large home they then couldn’t afford to furnish.
Add to that the fact that they’re both busy at work and spending time with their very active toddler, and they just don’t have the bandwidth to try to figure it all out themselves.
By engaging with a financial advisor, Todd and Lana were able to:
Identify an appropriate home budget for each of the towns where they are looking, and how large of a down payment they should make.
Create a financial plan that incorporated all the forthcoming changes to their living expenses, including increased childcare costs, buying a new car, and the cost of furnishing and maintaining a larger home.
Find balance among competing financial goals, including how much to save, how quickly to repay loans, and how much (and where) to invest their money
Living in an area with an ever-competitive housing market, they understood the need to be completely ready once they saw the right home.
That’s why when they found the right property, they were able to act quickly (and confidently) in their decision, knowing that they found a home that met their needs without causing other financial issues down the road.