Phoebe is 45 years old
She is having a very nice career at the Job Store for Pharmacists. She is now a pharmacy manager and is helping the next generation of pharmacists learn the ropes. Pharmacist Phoebe has been a good saver but when she looks out into the future she is not sure she has saved up enough money to retire, especially if she wants to retire before being eligible for social security.
15 Years Left Until Retirement
Let’s drop in on Phoebe’s financial position with about 15 years left before retirement.
Phoebe
Her Financial PositionHER ASSETS
- 401(k): $300,000
- Student Loan: $0
- Mortgage Loan: $300,000
- Checking and Savings: $50,000
- Mutual Funds: $5,000
Financial Focus
Phoebe needs to get financially focused. The sooner the better.
We Can Help!
Pharmacist Finance can help Phoebe.
Prioritize Retirement
Pharmacist Phoebe needs to focus on two things if she truly prioritizes retiring before being eligible for social security.
- Pay off the mortgage.
- Create and begin funding a “transition” account to be used exclusively in her first few years of retirement.
Let’s Create a plan for Phoebe the Pharmacist
Pharmacist Finance Creates a Plan for Phoebe the Pharmacist
Pharmacist Phoebe Pays Off The Mortgage
It’s time to take a hard look at Phoebe’s current mortgage balance and plan for paying off the entire loan before retiring. Let’s say Phoebe has less than 15 years on her current loan. Phoebe probably keeps the loan as is and finishes up on schedule. But, if Phoebe has more than 15 years remaining it is time to get serious and either refinance or start making additional payments against the loan, systematically.
Pharmacist Phoebe Creates a Transition Fund
The Transition fund will be a valuable tool for Phoebe the Pharmacist since she plans on early retirement. Phoebe needs to set a minimum goal of having $120,000 saved in the account by the time she retires around age 60. To reach her goal of having a transition fund of $120,000, Phoebe will need to save $700/month, starting TODAY. This account can be held anywhere but funding must be prioritized and automated.
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