A Financial Planning Case Study
There are many different types of financial planners. It’s important to choose one that fits our needs on every level. You should be able to talk freely, ask all of your questions without being embarrassed, and trust that he/she has solutions for any challenges that you are facing. Some situations benefit from a planner who can think out of the box.
Here is a case study of John Smith who is an adventurous guy. He left his corporate job with a steady paycheck and a 401K. John got married and traveled the world for a year with his new wife financing much of it to his credit cards to the tune of $120,000/$50,000.
When he got home from his trip, he was burdened with a great deal of credit card debt. He had started a business but it was going to take awhile to make the kind of money he needed and the 15% interest rates on his credit cards were costing him too much money. He spoke with a few financial planners and none of them had a good answer to the his situation. He and his wife started a family and the bills were piling up.
When he met Paul Stramberg, CPA and Financial Planner at a networking event, they set up a meeting. Paul listened well and came up with a creative solution. He showed John how he could take $120,000 from his 401K and transfer it into a Solo 401K which is a special retirement plan for entrepreneurs. Then he could borrow from it for a low interest rate of only 3%.
John was relieved to say the least. He was able to build his business, pay down his debt, support his growing family and build wealth. Most of all he was able to relax and know that he and his family were on the right track.
If you are feeling like you have no options, set up a free consultation if you want to discuss your financial planning. You may be surprised at what you learn.
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