Entering into any new relationship can seem daunting. Particularly, when we are asking you to work with us for a full year! To shed light on what this journey entails, we would like to introduce you to Nick and Peter, a couple residing in Vancouver with their 2-year-old son, James. Under the pseudonyms Nick and Peter, they have embarked on an annual comprehensive engagement with Modern Cents. Throughout this case study, we will follow their financial journey, providing insights into our process and their progress as they work towards securing their financial future.
THE PEOPLE:
Nick and Peter are a married couple in their late 30s. Peter is a US citizen and just received his Canadian permanent residency earlier this year. Nick is a Canadian citizen and has never lived outside of Canada. Both are dedicated working professionals who have chosen to partner with Modern Cents.
Their goal is clear: "We work hard and want to make sure that we are doing everything right with our current investments and ongoing savings for our future."
DISCOVERY MEETING:
Our journey with Nik and Peter commenced with a comprehensive review of the information they provided during the onboarding process.
This initial step helped us prepare for our discovery meeting. The objectives of the discovery meeting are:
Dig deeper into the financial goals and priorities that Nick & Peter identified.
Address any questions or discrepancies related to the information they provided.
Identify potential gaps or opportunities in their financial situation.
After an engaging discussion spanning about an hour, we collaboratively determined Nick and Peter's financial priorities and goals, to include:
Create a cash flow management plan that will help you feel more in control of your day-to-day household finances;
Tax planning & education:
Identify any efficiencies that can be implemented
Understand the Canadian tax system
Strategy for savings - including short, medium and long term goals;
Be mortgage free by 2035;
Provide for James’s undergraduate degree;
Confidence investing as a U.S. tax filer in Canada including the do’s and don’ts for investments and cross border tax considerations;
Protection for the family - getting estate documents put in place and performing a full insurance needs analysis.
PRIORITIES:
At Modern Cents, we firmly believe in the power of focusing on one financial priority at a time. It not only enhances commitment but also significantly increases the likelihood of success.
In line with this principle, we crafted a financial planning roadmap tailored to Nick and Peter's unique circumstances. The roadmap serves as a guideline for prioritising our work together over the course of the year. We decided to start by tackling financial management and cash flow as our primary focus. Understanding cash flow is the cornerstone of a solid financial plan. It also aligns with Nick and Peter's list as they are starting to feel like they are not in control of where their money is going and it is becoming a real concern to Peter.
WHAT'S NEXT:
Stay tuned for the next instalment, where we will delve deeper into our discussions with Nick and Peter about their relationship with money. We will explore the role money plays in their lives and how this may impact their household cash flow.