There are so many different reasons people find themselves in a financial pickle; some are unlucky, while others find themselves victims of circumstance and poor planning. Others just don’t get around to starting to plan…
I met two contrasting potential clients yesterday…
One worked for a government department and had started planning for retirement early. She’s VERY well positioned, we’re just going to work on how to make the results even better! She plans to retire in 1-2 years.
The other’s had worked hard for thirty years in their own business. When times were good they’d spent everything because they’re planned on selling their business to fund their retirement; a buyer couldn’t be found so they ended up closing the doors.
The contrast was both astonishing and extremely sad! The thing is, if the self-employed couple had planned they could’ve built a tax-effective nest egg for their retirement for years…but they hadn’t. Now they’ve retired with business related debt. They weren’t even sure they could keep their home but for the silver lining of an imminent inheritance.
The inheritance has to clear debt before we can think about how to create an income stream for their retirement.