Case Study: Corporate Employee to Business Owner

Can I leave the corporate world and start my own business?

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.

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Jake Cuthbert, CFP®, AIF®

Jake Cuthbert is President of Educo Advisor Group and an LPL Financial Advisor with nearly two decades of experience helping individuals, families, and business owners make informed financial decisions. He earned his B.S. in Finance from Grove City College in 2004 and became a CERTIFIED FINANCIAL PLANNER™ professional in 2016.

Jake’s expertise includes retirement income strategies, tax planning, wealth transfer, succession planning, cash flow management, investments, college savings, risk management, and estate planning. His approach reflects Educo Advisor Group’s mission to Educate, Communicate, and Guide through personalized, practical financial strategies.

Jake also serves as President of the Financial Planning Association of Pittsburgh and as a part-time instructor for Duquesne University’s Certificate in Financial Planning program.

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