Young Professional Program

The Young Professionals Program, available through Huberty Wealth Management, is a financial planning strategy that starts when the professional’s career does, and lasts the rest of that professional’s life.

Huberty is focused on opportunity. The earlier financial planning starts in one’s life, the more opportunities likely to come along and the greater potential benefit Huberty can help the young professional realize.

The plan is divided into three parts, each of which applies to an individual or to a family. Through each phase, as the years progress, Huberty’s hands-on approach ensures the growing professional will receive independent, objective advice on financial matters.

The First Steps: Building a Financial Foundation

As a career begins, Huberty helps  the professional put together a budget that covers the basic necessities of life. Then, the total amount of cash coming into the household is compared to that budget. Based on the amount of income available above and beyond the basics, Huberty can help guide the professional to decide: How much should I put aside now? Where should we invest it? What’s the plan? There are many options. Huberty will help the professional understand those options, to enable informed choices.

Another early step with high priority is establishing an emergency fund. This would consist of three to six months’ worth of living expenses that is readily available. Also done at this phase is an analysis of any school loans. Based on interest rates, how quickly should they be paid off? Which one should be paid off first?

First Steps typically include:

  • Financial review
  • Create a budget
  • Income projections
  • Building an emergency fund
  • Basic retirement planning
  • Major purchase planning (car, house, property, boat)
  • Risk management (liability insurance)
  • Traditional vs. Roth IRAs

Intermediate Steps: Wealth Accumulation and Management

At this point in life, young professionals often consider starting a family. Cars and houses are not the only important life steps that can cause sticker shock. Knowing the projected cost of raising children (more than most people realize), the professionals can plan accordingly. Huberty will not only assist with knowledge of what to expect in terms of medical coverage, daycare, and other costs in properly raising and nurturing a child; Huberty will also discuss possible advantages of deferring into a dependent care account, or taking tax credits on income tax returns.

Life insurance is another major topic at this point in life. With children and a mortgage, it’s important to make provisions for the family, should something happen to one or both parents. Huberty will help determine the appropriate amount of life insurance, and help decide if permanent or term insurance is most appropriate for their unique situation.

Estate planning also starts at this life stage. Having a will in place that addresses what would happen if one or both parents would pass away. It’s important to make certain decisions, such as who would handle life insurance assets on behalf of the children. If those decisions are not specified, they are made not by a family member, but by a judge.

Initial planning for retirement starts here (if it hasn’t already). Funding plans for the children’s education are also initiated.

All along the way, Huberty remains focused on every possible opportunity for the maturing professional’s continued financial well-being.

Intermediate Steps include:

  • Budget review
  • Family planning (children's education)
  • Risk management (life insurance)
  • Major purchase planning (home improvements, vacation home)
  • Tax planning
  • Advanced retirement planning
  • Basic estate planning (wills, medical power of attorney)
  • Deferred compensation

Later Steps: Enjoying the Benefits of Sound Planning

In anticipation of retirement, Huberty and the professional once again perform a budget review, to see where the money goes each month. We factor in the client’s Social Security benefits, analyzing several ways to determine how they can be optimized. At what age would retirement be most beneficial? For each option considered, what are the tax effects?

Once we determine Social Security benefits, we factor in any pensions, deferred income, savings plans, and so forth. Essential expenses (food, clothing, healthcare, the mortgage, real estate taxes, utilities, etc.) are identified.

Are each month’s expenses higher than expected monthly income? If so, we’ll analyze whether we can reposition a portion of retirement and/or non-retirement accounts into a personal pension plan that will at the very least cover expenses.

Long-term care planning and estate planning are another part of this later step. If an estate is large or complex, Huberty can advise on the importance of gifting to the children, funding education plans for the grandchildren, trusts, charities, and other options.

But retirement planning goes beyond the numbers. How do you factor in those travel plans you’ve always put off? What will you do with your time? Spend more time with your family? Will your days be a succession of leisure activities? (Or is it time to start a new career?)

Retirement doesn’t need to be a fight for basic subsistence. Especially for those who have participated in the first two steps of Huberty’s Young Professionals Program.

Later Steps include:

  • Budget review
  • Retirement income distribution
  • Social Security planning
  • Risk management (long-term care)
  • Advanced estate planning
  • Legacy planning
  • Health care