Broker Check

Recent College Graduate

Noah, 22

Noah, 22

Reason for reaching out

Noah just graduated from college. He was fortunate enough to land his dream job right out of college in engineering.

On his first day, Noah received his employer benefits package. He felt overwhelmed and helpless. Nobody explained what anything was.

His reason for reaching out was he was nervous that he was going to make a bad decision that would drastically impact his future. With his position, he knows that over the next few years, he would be receiving substantial pay increases. He wanted to develop a plan that would help him make better use of his potential bonuses and salary increases.  Noah was currently renting but knew eventually he wanted to purchase a home.

What we found in our Data & Goals meeting

Noah has always been a saver. He hates to spend money. His family openly discussed money and his parents have forced him to set money aside each pay since his first job at 16. In the data and goals meeting, we found that:

  • He currently had a surplus of money each month but that would be changing when his student loan payments begin.
  • He has an investment account that he trades stocks in.
  • He had a Roth IRA from when he was 18. 
  • Noah's company offered a 401k, group health insurance, disability insurance, stock option plan, and a "wellness incentive".

Our Strategy for Noah

  • We would encourage Noah to set aside future student loan payments into a savings account.
  • Education continues in working with Noah on the types of orders to place when stock trading and the impact of capital gains tax.
  • We could develop an efficient investment strategy potentially utilizing index funds instead of individual stocks.
  • We could help track down his old Roth IRA and make any adjustment based on his risk tolerance. 
  • We could evaluate maxing out the Roth IRA and all benefits his company offered.
  • To address his initial issue, we can him get enrolled in his company's 401k plan and evaluate an annual automatic contribution increase. We can help him strategize involvement in the company's employee stock purchase plan.
  • If his employer offers as a benefit, we can review disability insurance options.

Our motivation would be to help Noah feel educated and comfortable. Being an engineer, numbers won't scare him. We can develop a plan together that can help him picture his financial future, help avoid "lifestyle creep" with his pay increases and potential bonuses, and enjoy today while planning for tomorrow.  

This is a hypothetical example and is not representative of any specific situation.