Life Transitions – Case Study

Sally was referred to me by her CPA to review her current financial plan and assist her in developing it further. Sally has just become the new owner of her company and is also recently divorced with three children.

Sally is a recently divorced new business owner who wants professional advice on how to strengthen her financial situation, so she can focus on her growing her business to its full potential.

She also wants to continue to make sound strategic financial moves necessary to enhance her retirement plans and build college savings for her children.

Sally’s CPA suggested reviewing her current financial plan. She also recommended creating a combined Defined Benefit and 401(k) plan to defer a large portion of her taxable income. Sally is juggling a busy role of new boss and sole parent. She needs to focus on her company and family and could really benefit from the sound advice of another professional to help her understand all the possible options to make informed strategic decisions.

Create a budget with a portion of discretionary income allocated to savings monthly. Look at selling liquid assets (mutual funds, stocks, or other personal high-value items) to also help meet this need. Establish 529 plans and allocated to them quarterly. Through the business, defer income into a defined benefit plan and 401(k) annually.

When we reviewed Sally’s plan it was apparent the business income was healthy and could meet her immediate and long-term goals successfully. We helped identify the best retirement programs able to grow with her and the company as she expands. We were also able to show her how to protect her business and her sole income for her family with disability, life and long-term insurance strategies.