Kathy, age 44, is a radiologist in Taos who purchased a home in 2006 prior to the mortgage crises. Her home was in need of repairs and obtained a second mortgage and third mortgage, one was for a new roof and the other was to upgrade the electrical. In addition she had to borrow from her retirement plan in order to make other renovations. She also has credit card debt, student loans and a car loan. The burden of debt is overwhelming especially since she estimates that she purchased her home at the top of the market and the home value is less than the total outstanding mortgage debt. Her salary is $67,000 per year and that does not include the rent she receives from her roommate. Kathy is a hard worker and has worked extra hours to cover her debt. She does some travel to visit her family in another state. She also has been involved in business ventures. She is savvy and knows that she needs to deal with her financial issues. She does maintain a 403(b) fund and contributes to receive the maximum matching employer contribution. Her cash flow is restricted because of the amount of debt she carries.

Step 1: What is important to Kathy?

Step 2: Financial Diagnostics

Step 3: Goals Based Recommendation

Step 4: Implementation and Execution