Rob is a 55 year-old divorcee selling his chain of eight local tire stores to a large, national chain. He’ll work for the national chain for two years to transition the business, but is not sure what he’ll do beyond that.
Challenge:
- What should Rob do with the money he receives?
- Can he retire after two years?
Financial Issues:
- How should Bob invest the $4.5 million after taxes, he will get from the sale?
- What income could he expect if he retires in two years? Can he live on the income from the sale, and will it last his whole life?
- He has $158,000 in a SEP plan. Should he roll that into the national firm’s 401(k) or into his own rollover IRA?
Lifestyle Issues:
- Rob has always wanted to coach football. He played linebacker in college and taught English and Physical Education years ago, before he got in the tire business. Could he coach a high school or a Pop Warner team?
- Rob’s girlfriend has a restaurant and would like to expand and is looking to help to help finance it. He is concerned about going back into business and the impact of a business partnership on his relationship.
- He wants to be sure his three children are taken care of if anything should happen to him, but does not want his ex-wife to get any of his money.
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 each client 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.