Joseph and Kimberley - The Business Owner

Background

Joseph and Kimberley have 3 kids (ages 12, 8, and 6) and are both very entrepreneurial. In their early 30s they started a design-build firm specializing in luxury outdoor living areas. Since then, the company has grown to 10 full-time employees plus seasonal construction staff. The company generates $2.5 million per year in revenue with 20% profit margins. Joseph works full-time as the CEO of the company and Kimberly works in the business part time doing design work while also staying home with the kids.

The Problem

Now in their 40s, the Moore’s realize they have neglected saving for retirement. They feel pressure to “catch up” but aren’t sure how much to save or what type of accounts to use.

They also have a large tax bill each year but don’t know what they can do to lower it.

In addition, the seasonal nature of their business makes their income irregular. This results in stress and confusion around how much they should spend each month and less charitable giving than they would like because of fear of not having enough to make it through the winter.

All of this has left Joseph and Kimberley feeling stressed and overwhelmed about their finances in spite of earning more than they ever have.

The Solution

After getting to know Joseph and Kimberley, their Certified Kingdom Advisor© helped them clarify and prioritize their goals:

1. Reduce stress and maximize giving by effectively managing their irregular cash flow.
2. Save enough to be able to retire at age 65 while maintaining their current lifestyle (without depending on the value of their business).
3. Lower their taxes.

Once their goals were clearly outlined, their CKA© helped them:

1. Understand how much they were spending and create a budget that prioritized charitable giving and aligned with their goals.
2. Regulate cash flows using the “Bucket Strategy.”
3. Understand how much they needed to save to be able to retire at 62, then set up a retirement plan enabling them to invest for retirement and claim extra business tax deductions.

The Results

After implementing the plan, Joseph and Kimberley eliminated cash-flow related stress while significantly increasing their charitable giving. They also invested enough to stay on track for an age 65 retirement (without being dependent on the value of their business). In addition, they lowered their business tax bill and boosted employee retention/satisfaction by setting up a 401k Profit Sharing plan.

In regard to their finances, Joseph and Kimberley feel peace because they understand their situation, have a simple plan based on biblical principles, and have a guide to walk alongside them.

*Disclaimer: All scenarios are entirely hypothetical and the individuals/families described are not real clients of Peak Financial Management. Nothing in these case studies should be construed as a guarantee of results/outcomes of, or satisfaction with services provided by Peak Financial Management.