Being Intentional with Your Finances

Dave Sather forwarded me an email from the daughter of one of our clients. Jessica and her husband, Craig, wanted to come in to review their finances with three primary goals: saving for retirement, buying their dream home, and planning for future college expenses.

With over a decade in wealth management, it’s not uncommon for me to work with the adult children of our clients—but it’s always a rewarding experience. I opened their spreadsheet and was immediately struck by what I saw: meaningful assets and, shockingly, no debt. Curious, I asked Dave if they were in their mid-40s.

He replied, “No, late 20s.”

“Seriously, Dave—how old are they?”

“Late 20s.”

“Inheritance?” I asked. Dave smiled and shook his head.

Instantly, I thought back to my own late 20s, and to the hundreds of young clients I’ve helped over the years. I was genuinely blown away. How had this couple accumulated so much wealth with no debt, less than 10 years out of college?

When they arrived, Jessica and Craig didn’t look flashy, no designer clothing, no luxury cars outside. They appeared to be a typical young couple. But from the moment they sat down, with pens in hand and notes ready, it was clear they were anything but typical.

What struck me most was their intentionality. They were prepared, focused, and disciplined. Both had solid jobs, not exceptionally high-paying, but steady. Yet they had already achieved what most people twice their age struggle to do.

So, I asked them directly: “How did you do this?”

They shrugged, as if they hadn’t done anything special. But what they’d done was incredibly rare. From the beginning, they made smart, intentional decisions. After graduating, they didn’t rush into buying a big house. Instead, they bought a modest starter home and focused on paying it off, which they did before coming to see us. They drove used cars, always at least three years old, and kept them until the wheels fell off.

They embraced delayed gratification. Rather than lifestyle inflation, they chose to invest in their education, sought out internships early on, and avoided the traps that often derail young professionals, car loans, credit card debt, and excessive consumption. By keeping their priorities straight, they eliminated the biggest threats to building wealth.

They also made tax-smart, flexible investing decisions. Because they were still in a relatively low tax bracket, they prioritized Roth 401(k)s and Roth IRAs instead of traditional pre-tax contributions. This not only set them up for long-term, tax-free growth, but gave them optionality.

As we walked through their financial plan, Dave and I brought up an important piece of strategy they hadn’t fully considered: the optional use of Roth IRAs for future college expenses. They had been contributing to Roth IRAs consistently, recognizing their low tax bracket made after-tax contributions more efficient. But when the topic of saving for their future children’s education came up, they weren’t sure if a 529 plan was the right fit.

Jessica and Craig weren’t certain their kids would attend college, and even if they did, they felt strongly that their children should contribute in some way, through scholarships, part-time work, or simply having skin in the game. That’s when we explained how Roth IRA contributions, not the earnings, can be withdrawn tax and penalty-free at any time, even for non-retirement needs like education. It’s a lesser known but powerful feature.

While a 529 is an excellent vehicle for college funding, it’s more rigid. The Roth IRA gave them flexibility, to help pay for college if needed, or retain the funds for retirement if not. It was the perfect fit for their thoughtful, values-driven approach to parenting and planning.

By age 30, they had built a net worth of $750,000, and more importantly, they had built options. They were on track for early financial independence. When we joked about one of them staying home to raise kids, Jessica smiled and said she loved going to work. Craig leaned back and said he’d happily stay home. Their choices in their 20s created that freedom.

After reviewing their insurance, estate plans, and investment allocations, we praised what they had achieved. They were surprised by the attention, still unsure of why their story stood out.

But it does stand out.

Their story should serve as a template for college students, new graduates, and, quite frankly, the rest of us.

Joe Olive is a 10-year Air Force veteran who currently works as a Financial Advisor for the Sather Financial Group, a fee-only strategic planning and investment management firm. He holds a master’s degree from Columbia University.