Cordelia, a 43 year-old, single, sales manager for a pharmaceutical company is leaving her job after 12 years to join a small, start-up company.
Challenge:
- What should Cordelia do with her stock options and retirement money?
Financial Issues:
- Cordelia has non-qualified employee options on 6,400 shares of the company at various prices. Should she exercise and hold the stock or sell it?
- She has $625,000 in her 401(k) account invested mostly in a small-cap value mutual fund. Should she leave it there or roll it over?
- She has $387,650 worth of company stock in an ESOP plan. Should she roll it over into an IRA?
Lifestyle Issues:
- Cordelia has a one-bedroom condominium and would like to buy a house.
- She can perform new job from anywhere in the Pacific Northwest with an airport close by. She currently lives in Dallas, Texas and is considering a move to Portland or Seattle. Washington.
- She is a triathlete and trains hard. She wants to be sure that if she ever has a sports injury, she will still be financially sound.
WrapManager is available to assist in discussing options and helping to build a portfolio based on the individual needs of the client. We can work with them to create an Envision plan and evaluate their cash flow needs against their available assets under both the preferred and acceptable scenarios. We can then run a projection of the probability that their money will reach their goals under each scenario to help them better understand their situation and options.
This case study represents hypothetical situations as examples only. Accordingly, no client or prospective client should assume that solutions presented (or any component thereof) serve as the receipt of, or a substitute for, personalized advice from WrapManager, or any other investment professional. Not every client of WrapManager chooses to participate in all of the steps available and each individual client situation is different.