Savings & Family Costs in Detail
With the most immediate goals being short-term savings for a new home, a “rainy-day fund” and saving for college, we created a plan for regular contributions that fit the Miller’s budget.
Establishing personal savings of $30k would protect them for three months of rainy days, while a business savings of $100k would keep the dental practice afloat for a month if needed.
The idea was to upgrade the family home and retain the current property as a rental. Savings in the short run would be focused here until reaching the $300k target down payment on their new home.
After projecting the total education cost for two kids to attend local universities, we established 529 College Savings Plans. Their monthly contribution will cover half the expected need, while the other half will be saved in a long-term investment account.
This approach will ensure that the college accounts don’t exceed needs should either of the kids benefit from scholarships, decide not to attend university, or should the future education costs prove to be less than anticipated.