Turn Income Into Wealth
As Eric and Cindy’s careers in Fortune 500 companies progressed, so did their salaries, bonuses, and equity compensation packages. With their growing wealth, they recognized the need to navigate increasingly complex financial decisions while planning for the future.
Goals
Eric and Cindy aimed to effectively manage their expanding income and benefits. They wanted to maintain their lifestyle while saving for future goals, including starting a family. They set an objective to work towards financial independence by their early-to-mid 50s.
Challenges
As a newly married couple, Eric and Cindy struggled to align their individual financial habits into a cohesive strategy. They had limited experience managing complex compensation packages and were unsure how to optimize their workplace benefits. Balancing current lifestyle desires with long-term financial objectives presented another challenge. They recognized the need for a strategy that fostered accountability and ensured positive progress toward their most meaningful life goals.
Approach
On the recommendation of a colleague, Eric and Cindy sought professional guidance from a financial advisor. Their advisor helped them create a comprehensive financial plan tailored specifically to their life transitions and goals. The advisor also scheduled consistent planning meetings to review Eric and Cindy’s progress and adjust strategies as needed.
Results
Working with their financial advisor, Eric and Cindy have implemented several wealth-building strategies, including:
- Created a “Pay Yourself First” system to allocate cash flow to various financial objectives automatically
- Reviewed and adjusted their use of workplace benefits, including 401(k) plans and flexible spending accounts
- Developed a plan for the strategic use of bonuses and vested RSUs
- Established a balance between maintaining liquid cash reserves and long-term investments
Eric and Cindy now have a structured approach to making financial decisions that align with their long-term objectives. They’re positioned to make smart ongoing choices for their current lifestyle while building toward long-term financial prosperity and their goal of early financial independence.
Looking to ditch the guesswork and map out your own best steps forward?
Disclaimer: The above hypothetical example story is for illustrative purposes only and should not be construed as a recommendation. It does not involve an actual client and may not be representative of your experience.
