Case Study | Busy Parents Start A Successful Business

Overview and benefits

Profile

Alex & Jamie, parents and business owners

Financial Goal

Creating a retirement plan for their business

Age

45 & 43

State

Texas

Alex & Jamie's story

Alex and Jamie, parents to twin girls, got married right after law school and spent the first decade of their career as corporate attorneys. As each year went on, jokes of opening their own firm turned increasingly serious. Five years this month, they opened the doors to their firm and have been busy building it ever since. Between work and parenthood, their time is in high demand.
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Fortunately, Alex and Jamie work in a lucrative industry and have always made a high income. They have bought a house they plan to be in for the long haul and have a few investment accounts they contribute to from time to time. As the girls get older, college is increasingly on their mind.

Case study results

Upon review of their personal balance sheet, their Financial Planner at Twenty Fifty Capital found they were very infrequent with contributing to their investments nor had they opened a retirement plan for their firm. As business owners, Alex and Jamie have the ability to shape their company benefits plan and, better yet, shape them to their needs.

So, a 401K profit-sharing plan was opened for the firm to take advantage of the tax-deductible contributions. At the same time, a cash flow analysis was done to determine a schedule for and the amount of investment contributions they will make to their accounts each year. This includes a 529 education savings account to help with the twins’ future college education.

ⓘ Important Disclosure : Case studies presented are hypothetical scenarios and intended for illustrative purposes only. They do not represent an actual client or an actual client’s experience, but rather are meant to provide an example of the Firm’s process and methodology. While they may be based off of real client relationships, an individual’s experience may vary based on his or her circumstances. There can be no assurance that the Firm will be able to achieve similar results in comparable situations. No portion of this case study is to be interpreted as a testimonial or endorsement of the Firm’s investment advisory services, and it is not known whether the hypothetical clients referenced approve of the Firm or its services. The information contained herein should not be construed as personal investment advice.