Financial Catastrophe Avoidance

Financial & Friendship Catastrophe Avoidance

Rick and his wife Marie are middle age with no kids. They both used to work 50+ hours per week and lived modestly — but when Marie’s mom fell ill, Marie quit her job to take care of her.

Around this time, Rick’s startup company began having trouble making payroll even though salaries were below industry standards due to substantial employee stock options. It was anticipated that shareholder employees would be well-rewarded when the company went public, but ultimately, the company went bankrupt and stock options became worthless.

Luckily for Rick and Marie, they had lived modestly, saved for retirement and paid off all their debt. In addition, Rick found a contract engineering position, which allowed flexible work hours and paid a great salary. Once Marie’s parent’s passed, they received a small inheritance.

Prior to her parents’ passing, Rick and Marie saved as much as they could and were very budget conscious. Post-inheritance we worked with them to develop investment strategies which allowed them to draw monthly income from their investments. Even though Marie works part-time, with no debt they live a rewarding, yet responsible lifestyle—they make purchases, eat out and travel several times per year without financial concern. At the same time, they’re increasing their net worth over time to offset the effects of inflation.


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