Case studies
Case Study: Corporate employee to Business owner
Can I leave the corporate world and start my own business?
Lenny is a 56-year-old who’s recently been downsized from his corporate job. He had no intention of retiring anytime soon and really enjoyed the work he was doing. He had amassed a little over 500k in retirement savings, only had about 3 years left to go before paying off his mortgage and no other consumer debt. He is a divorced and a parent to three grown children.
His primary concerns:
- Can I start my own business in the same industry I was in, so I don’t ever have to go through another corporate downsizing?
- Is my current nest egg sufficient if I want to retire at 65?
- Is my 401(k) allocated properly and what should I do with it now that I’m separated from service?
Lenny has always had the security of a consistent paycheck as well as a retirement matching contribution from his employers. He’s looking to meet with an advisor with the hopes of laying out a plan for what will now be more inconsistent cash flow, developing a budget for both spending and continuing to save for retirement, and making sure those dollars are invested in alignment with his timeline to retirement. Lenny also has never run a business before and looking for guidance on what kind of entity he should establish (Sole prop, LLC, S-Corp, etc.) and any other pitfalls that could stand in his way. He also wants to know if he should accelerate payments to pay off his mortgage quicker instead of having some idle cash in a savings account.
This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.
Case Study: Corporate employee to Business owner
Can I leave the corporate world and start my own business?
Lenny is a 56-year-old who’s recently been downsized from his corporate job. He had no intention of retiring anytime soon and really enjoyed the work he was doing. He had amassed a little over 500k in retirement savings, only had about 3 years left to go before paying off his mortgage and no other consumer debt. He is a divorced and a parent to three grown children.
His primary concerns:
- Can I start my own business in the same industry I was in, so I don’t ever have to go through another corporate downsizing?
- Is my current nest egg sufficient if I want to retire at 65?
- Is my 401(k) allocated properly and what should I do with it now that I’m separated from service?
Lenny has always had the security of a consistent paycheck as well as a retirement matching contribution from his employers. He’s looking to meet with an advisor with the hopes of laying out a plan for what will now be more inconsistent cash flow, developing a budget for both spending and continuing to save for retirement, and making sure those dollars are invested in alignment with his timeline to retirement. Lenny also has never run a business before and looking for guidance on what kind of entity he should establish (Sole prop, LLC, S-Corp, etc.) and any other pitfalls that could stand in his way. He also wants to know if he should accelerate payments to pay off his mortgage quicker instead of having some idle cash in a savings account.
This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.
