This is our third and final installment of ideal fit scenarios – hypothetical individuals who would be well-served by Peloton’s service offerings. In this article, we describe someone who would benefit from Peloton’s Roadmap planning engagement.

The Need

In the five years since Tyler graduated from medical school, he’s had almost no time to think. He’s wanted to ensure that he’s on the right financial path, but with the demands of residency and the need to pay off school loans only now, at age 31, is he ready to start planning. He wonders where he should start. He’s learned to be thrifty but needs quality guidance and a sound plan. He also values objective, non-conflicted professional advice. Tyler’s main concerns are establishing goals, providing for his family, saving for retirement, and pursuing smart investment strategies. Given his current tax bracket, he also wants to make tax-smart decisions.

Peloton’s Processpeloton road map

Tyler follows a friend’s recommendation to meet with Peloton about their Roadmap engagement. During the meeting, Peloton describes what Tyler can expect: objective, professional advice for a single fee. Tyler decides to engage Peloton, and over the next two weeks the engagement progresses:

  • Peloton begins by establishing Tyler’s own secure financial portal, which he can access when and where it’s convenient. Tyler then logs into the portal and begins entering his information.
  • Tyler wants to have some help with goal setting, but enters two objectives that he already prioritizes.
  • He then establishes secure links to his financial accounts, which feed real-time data to the planning software.
  • After Tyler completes this initial step, Peloton reviews the data and develops a list of follow up questions.
  • After Tyler responds with answers, they adjust their projections and schedule a meeting with Tyler to review projections and recommendations.

Roadmap Deliverables

  • Peloton begins by helping Tyler establish concrete goals. Some of these are near-term goals and several are long-term.
  • Next, Peloton addresses Tyler’s main financial risks. He’s young and healthy, but has no life insurance to provide for his family in the event of his death. Peloton does not sell insurance, but they quantify for Tyler how much he’ll need in various scenarios, how long he’ll need the insurance, and help him assess the appropriate types of insurance coverage.
  • Tyler is doing a great job maximizing his 401(k), but because his employer doesn’t match his contributions, he feels the need to save more. Peloton helps Tyler evaluate additional tax-deferred options to meet his goals.
  • Investing is one of Tyler’s two main, ongoing needs. Peloton helps him establish a funding strategy and explains several important principles of investing that will help him manage money for himself if he chooses.
  • Tyler’s other main need is tax planning. Because he has self-employment income and related investment complexities, his tax planning is complicated. Peloton readily acknowledges that tax advice is beyond the scope of its investment expertise, and refers Tyler to a trusted CPA.
  • At the end of the engagement, it is clear that Tyler is also a good fit for Peloton’s ongoing investment management services. Peloton asks for Tyler’s permission to present a separate proposal detailing an investment management strategy. At this stage, Tyler isn’t sure whether he wants an investment manager or would rather manage his money on his own. He says he’d like to think further about the proposal.

When the Roadmap is complete, Tyler has a useful set of goals and a path for accomplishing them. His family will be protected well in his absence, and he has new opportunities to save more and reduce taxes. Best of all from Tyler’s perspective: this was a true strategic planning engagement – no follow-on fees, or needless complexity, just guidance.

Peloton is accepting new clients. We welcome your Roadmap referrals for anyone you know who sounds similar to “Tyler” described above.