CASE STUDY: The In-Transition Panic
THE SITUATION
Tom, a long-standing VP of IT for a large corporation, had been laid off. Sarah, his wife, was a stay-at-home mom for many years and considered going back to work. Both thought Tom wouldn’t be landing a job for many months and felt they had to make big lifestyle changes, including selling their home.
THE CHALLENGES
- EMOTIONS
Fear took over the couple and they were concerned they had to spend assets earmarked for retirement, considering the loss of income.
- STRATEGY
Starting a financial strategy in their mid-50s was daunting and understanding where to start was the hardest part.
- FUTURE EMPLOYEMENT
Not knowing when Tom would land his next role, and with Sarah’s potential career change, the panic set it.
THE ACTIONS
Continuum Consulting sat down with the couple and asked important questions around their family, their goals, retirement plans, and what Tom’s next career position might look like.
Through a comprehensive planning process Continuum Consulting addressed the following areas:
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- Spending and budgeting
- Expense reduction
- Income projections for both
- Appropriate rates of return on assets
- Areas of risk including life insurance and long-term care needs
THE SOLUTION
The financial model revealed:
- A reallocation of their retirement assets was necessary to achieve goal targets.
- An estate plan was important to make sure their assets passed to the next generation thoughtfully and appropriately.
- They had a minimum of nine months before they would need to access retirement assets.
- A long-term care policy was important to protect their retirement assets.
Within a few months, Tom started consulting and Sarah began the process of going back into the work force. At the six-month mark, Tom accepted a full-time offer from one of the companies he was consulting with. In the end, Tom and Sarah were back on track and the house they loved was still theirs and a small remodel was in the works.
About Continuum Consulting GroupContinuum Consulting Group is a financial planning firm who works with executives in career transition. They invest in long-term relationships with their clients, business partners, and employees.Continuum’s primary purpose is to guide clients towards achieving their goals and purpose in life.
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Registered associates of Continuum Consulting Group are registered representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. Continuum Consulting Group is not an affiliate of Lincoln Financial Advisors Corp. 18400 Von Karman Ave., Suite 400, Irvine, CA 92612. CRN-3171199-072120
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