Mark and Christopher
Mark and Christopher knew they could leverage Mark’s recent promotion to secure their financial future, but how could they do that? And what about Mark’s old 401(k) and stock options? We’ll examine these questions in this retirement planning case study.
The questions that came with the move.
The job offer Mark received was unexpected, but it was a big promotion at a great company. He and Christopher decided it was a great opportunity, and before they knew it, they were house shopping in their new city. Because Christopher could work from anywhere, their combined income allowed both to save for retirement, but Mark’s pay increase would let them save, or spend, much more than they were used to.
A clear path forward.
Mark and Christopher realized they were at a critical point in their financial lives, and wanted help from someone with extensive experience with executive compensation plans and retirement planning.
Gather the data
The details of all their investment accounts, their tax returns and their current lifestyle expenditures.
Consider all the options
Lay out every option, from early retirement to the beach house they’d dreamed about, each with its own odds of success.
Create a vision
Pick a tentative strategy and map out what they would need to do to accomplish it, knowing they could adjust over time.
Execute the plan
Establish new accounts and make the changes needed to make their vision a reality.
Seeing all of the options side-by-side allowed them to make a confident, informed decision they knew would pay off down the road.
A life designed on purpose.
While they could have easily afforded a bigger house with a bigger mortgage, Mark and Christopher opted instead for a less expensive townhome in a lovely neighborhood, saving the extra money from Mark’s new job and keeping the option of early retirement open for both of them. They also take an extra vacation every year, created a plan for Mark’s old company 401(k) and restricted stock, and increased Christopher’s SEP IRA contributions.
Today, Mark still loves his job but is on track for early retirement. Christopher, ever steady, has increased his billing rate while taking on fewer projects. Instead of building a second beach home, they are now planning to relocate to the beach when they retire early, and they regularly review their plan to see if they need to make minor course-corrections along the way.
For privacy reasons, the case study described in this retirement planning case study 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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