Our Client Story
Challenge: This couple had two good incomes but also large expenses and were unsure when they could consider retiring
Result: 3 Financial helped the couple gain clarity on their finances and get on track to achieving financial independence
Our clients, Anna and June, were both successful physicians. With two strong incomes, cash flow was not a problem. However, the couple owned a large home in Hawaii and condos in California and at a ski resort on the mainland. On top of that, they traveled frequently and drove expensive cars, too. So while cash flow was strong, money seemed to flow out as quickly as it came in. As a result, they enjoyed life today but never really penciled out their life together once they decided to leave medicine.
Lately, however, Anna was growing tired of her stressful life as an ER physician, so was very interested in cutting down her hours and moving towards retirement. They both were very interested in achieving financial independence, so work could be a choice, not a requirement.
They were recommended to 3 Financial by their accountant. They were relieved that 3 Financial would act as their fiduciary, as they had previously had a negative experience with a name-brand financial advisor. That advisor seemed to focus on recommending products, but not feel comfortable addressing their more general financial planning questions.
In our initial discussions, we first discussed their long-term and short-term goals. What did their life look life once both retired (either full time or part-time)? Where would they spend most of their time? Would they still want their three homes? What type of income requirements would they have? If they wanted to achieve financial independence, some spending choices would need to be made to speed up that process.
Once they got clear on their goals, we started getting organized. That included building out a financial plan that would provide them with a clear road map to achieve their goals.
Once that plan was finalized, we adjusted their investments to better meet their goals. Then, we had periodic meetings to take care of other parts of their financial lives. That included a review of all their insurance, then time spent with estate planning. We also helped them refinance a mortgage they had on one of their properties since interest rates had dropped.
Today, Anna is retired and June has scaled back her practice to part-time. With their financial plan in place, they now know both know how much they can spend each month to stay on track to their goals. We continue to meet with them regularly to check in on investment status and make any adjustments needed. Recently June started doing some consulting for a pharmaceutical company, so we helped her set up a new retirement account to minimize taxes on that side venture.