Meet Amy.
Amy has worked hard and saved her whole life but wondered if she was doing enough. Retirement seemed far away. And how did all of her employer stock awards fit in? In this retirement planning case study, we examine how Amy tackled these questions.
The questions she couldn’t shake.
While retirement still seemed far away, Amy knew it was time to start planning. She’d done everything she was “supposed” to do, even maxing out her 401(k) every year. She had also accumulated stock in her company through restricted stock awards, stock options and her company’s stock purchase plan. A large part of her wealth was tied up in her company. Would it be enough?
A clear path forward.
Amy realized that acting now would make things far easier down the road. She wanted help from someone with extensive experience with stock plans and retirement.
Gather the data
The details of all her investment accounts, her tax returns and her current lifestyle expenditures.
Take a reality check
Look at her current trajectory and determine whether she was really on track, and if any course corrections were needed.
Create a vision
After discovering she was on track, think about what she wanted. Could she retire earlier, and what would that take?
Execute the plan
Establish new accounts and make the adjustments needed to retire when she wanted.
Understanding her options, Amy was able to make a confident, informed decision, knowing a few small actions today would pay off down the road.
Freedom to live fully.
While Amy made a few small changes to her savings, she hasn’t compromised on traveling to new places all over the world every chance she has. She doesn’t feel guilty buying the things and experiences she wants, knowing she is already on track to retire early. She also put together a plan to diversify out of her company’s stock while minimizing taxes, and finally addressed her estate planning after seeing her aunt pass away without a will.
Today, Amy is still on track for early retirement. She continues to travel the world with friends, and can relax knowing she has a sustainable retirement plan in place. She regularly reviews her plan to see if she needs to make minor course-corrections.
For privacy reasons, the retirement planning case study described above is hypothetical and the facts do not apply to an actual Prana Wealth client. This case study should in no way be construed as a guarantee that a current or prospective client will experience similar results or levels of satisfaction if he or she engages with Prana Wealth for wealth management services.
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