Case Study: How We Helped a Couple Confidently Sell Their Business and Retire Comfortably

How We Helped a Couple Confidently Sell Their Business and Retire Comfortably

By Scott D Abrahamson, CFP® and Chris Pawlowski, CFP®, CRPC®, APMA®

When a married couple came to SpringSource Wealth Advisors in 2019, they were looking for help with retirement planning. As with all clients that come to us for guidance, we listened carefully to their goals and challenges and helped them create an inventory of their current assets. 

Then we crafted a custom, comprehensive financial plan that helped them navigate the sale of their business and also transition to a comfortable retirement.

Let’s take a closer look at the details of their situation and how we helped.

The Client

These clients were both in their mid-50s and had two grown children. They owned a small business together, were very community-driven, and had strong ethics, and tight family bonds. Financially, they were responsible savers.

The Goal

The couple planned to sell their business with a goal to retire thereafter. They asked for our help analyzing the sale of their business and setting up a cash flow strategy for their retirement years

They also expressed concern that if they retired before age 65, there would be a health insurance gap before Medicare kicked in.

During our initial meeting, our number-one priority was to provide them with complete confidence that we could leverage our knowledge and experience to help them overcome any financial challenge they faced. 

How Our Firm Helped

To help them work toward their goals, our firm offered the following planning services:

  • Assess their exit strategy: Being anxious regarding the sale of their business, we ran several scenarios including the sale over multiple years versus all in one. Using our analysis, we successfully illustrated the impact of each scenario on their financial plan. Through our comprehensive process, we were able to build a strong probability of success, which gave them the peace of mind to successfully complete their exit strategy.
  • Set up the cash flow for their retirement: Part of creating a complete, custom financial plan for them, was providing retirement cash flow planning. We discussed how much money they needed during retirement to continue their current lifestyle, how to analyze the income they’d receive (e.g., Social Security, savings, business-sale proceeds), identify any gaps that needed filling, being sure to address impacts of inflation and establish a cash-flow distribution strategy they felt comfortable with.
  • Answer health insurance questions: The primary question they had about health insurance was how to fill the gap between the time they retired and the time that Medicare would kick in (when they turn 65).

    We hear this problem all the time from clients in the midst of retirement planning. To help soothe the couple’s concerns about their health insurance gap, we coordinated with their tax advisor and health care insurance agent. Together, the team came up with a funding strategy that met their needs until they reached their Medicare benefit window.
  • Explain and manage tax ramifications: To prevent them from getting saddled with an enormous tax bill, we collaborated with their estate and tax professionals, who helped us integrate complicated tax and estate strategies into their financial plan.

The Outcome

We created and implemented a comprehensive, flexible financial plan, to which we make adjustments as needed on an ongoing basis. As life twists and turns unfold, we’re able to consistently help them fine-tune their plan to create a comfortable retirement

Get in Touch!

At SpringSource Wealth Advisors, our mission is to help our clients enjoy financial freedom. This couple’s story provides a perfect example of our firm’s ability to go above and beyond to help our clients make smart financial decisions.

If you need help with retirement planning, we invite you to set up an in-person meeting today. You can also reach us by calling (503) 714-9531 or emailing scott@springsourcewealth.com.

About Scott

Scott Abrahamson is Owner and Wealth Advisor at SpringSource Wealth Advisors, a fee-only fiduciary Wealth Advisor with a passion for simplifying the retirement planning process and bringing clients peace of mind. With their goals-based planning approach, SpringSource helps individuals, families, and small businesses make smart financial decisions towards living an abundant life. As an independent CERTIFIED FINANCIAL PLANNER™ professional with over 20 years’ experience, Scott’s mission is to empower clients to reach financial freedom through exceptional, caring service. He takes time to explore each client’s core values about money and partners with them to formulate clear goals based on those values. The result is a powerful, personalized road map designed to help each client successfully navigate every life phase. Scott loves watching clients experience a sense of peace and financial independence through smart financial planning over time.

Outside of the office, he enjoys playing and coaching sports, boating, outdoor activities, spending time with family, and serving in the community. To learn more about Scott, connect with him on LinkedIn.

About Chris

Chris Pawlowski is Wealth Advisor at SpringSource Wealth Advisors, a fee-only fiduciary Wealth Advisor with a passion for making the retirement planning process simple. With their goals-based planning approach, SpringSource helps individuals, families, and small businesses make smart financial decisions and realize the core value of their finances: living an abundant life. Since entering the financial planning industry in early 2013, Chris enjoys understanding his clients’ goals and working hard to formulate effective strategies for them. With the technical experience in the planning industry that puts him in a strong position to help clients through every life stage, Chris desires to empower families to reach financial freedom through exceptional, caring service.

As a Veteran who served in both the U.S. Army and the CA Air National Guard, Chris has a special passion for helping his brothers and sisters at arms in pursuing their financial goals. He holds the CFP®, Chartered Retirement Planning CounselorSM (CRPC®), and Accredited Portfolio Management AdvisorSM (APMA®) designations. Outside of the office, Chris devotes his time to his beautiful wife, Yvette, his church, and his hobbies, which include backpacking, kayaking, hiking, and enjoying time with his family and friends. He also partners with Hope World Wide, a faith-based charity organization in Portland, to serve local families in need. To learn more about Chris, connect with him on LinkedIn.

Information provided herein is provided by SpringSource Wealth Advisors, LLC. This information is for general informational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Information was compiled from third-party sources believed to be reliable and accurate but cannot be guaranteed. Investment advisory services are offered through Wellspring Advisors, Inc., an SEC Registered Investment Advisor. Neither SpringSource Wealth Advisors, LLC  nor Wellspring Advisors, Inc. render any legal, accounting, or tax advice. All investments involve risk, are not guaranteed, and may lose value. We recommend that all investors consult with a qualified adviser to assess your personal situation before implementing any strategy.

Please remember to contact your advisor when your financial circumstances or objectives change. Your advisor may recommend adjustments to your financial planning and investment strategies to better suit your current situation.