Remember when you were a kid and grownups asked you what you wanted to be when you grew up? That was then, and this is now. You are a grownup. You’ve finished school, gone to work, and started a family or a business.
Now you’re settled, but you still have dreams. Maybe you want to retire on a secluded stretch of beach or open a haven for stray dogs or send your grandkids to private school. Getting to that future can seem more mysterious than becoming a fireman or a ballet dancer did when you were small. How can you transform your daydreams into reality?
A Financial advisor can help you flesh out your dreams and develop a plan to realize them from your current financial situation. If you’re curious about what that sort of advice looks like, we’ve put together a few illustrative examples.
For years, entrepreneurs Alan and Joan Maxwell dreamed of retiring to Arizona to be near their youngest daughter and her family and away from the New England winters. They went to a financial advisor for advice about how to build the future they wanted.
Their small company provided a good living for the Maxwells, but the long hours required to run a business were beginning to weigh heavily on them. To complicate matters, Joan was diagnosed with a serious medical condition and needed to slow down and work less. They were ready to retire.
Their financial advisor analyzed their situation and Arizona’s cost of living. The couple had a $700,000 nest egg and a $350,000 home with just $75,000 left on the mortgage and no other debt. For a couple in their 50s, they were in good shape financially, but retiring completely might prove difficult. Selling their business and staying on to manage it was an option, but Joan’s condition and the couple’s desire to move eliminated that possibility. They already saved and spent money wisely, so tightening their belts further wasn’t an option. They had to come up with a solution.
Since Alan liked keeping busy and had a talent for accounting and finance, their advisor explored a scenario in which he continued working part-time as a bookkeeper in Arizona while Joan retired. Alan would earn less money than he and Joan had in the past, so his desire to continue working would be a smart move financially too. Alan loved this new idea. He and Joan closed the doors on their business, sold the assets, and moved.
These days, Alan and Joan live in Arizona. He’s a bookkeeper at a small company and can leave his work at the office. He enjoys being productive and relishes the idea of a good job, a more relaxed schedule, and living close to family. Joan’s schedule makes her condition more manageable and leaves her time for her hobbies and volunteer work. They spend quality time with their daughter and her family.
Even after moving to Arizona, the Maxwells continue as investment management clients with their financial advisor’s firm. Their advisor schedules regular checkups to help them stay on track.
The article listed above summarizes a hypothetical scenario developed to illustrate the kind of people we help and the problems we solve.