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James

Written by Personal_Financial_admin on .

Occupation: Social Media Entertainer/Actor/Business Owner

Age: 27

Primary Goal : Plan for a complete career change including a large income increase, cash flow planning, financial planning, business planning

James started his career as a medical sales rep where he was successful early on in his career. He enjoyed the work, and in his free time he would publish videos to popular social media apps as a side hobby and for fun not knowing where it would take him. After a few hard months, James gained popularity and views started rolling in. He eventually became so successful in the social media space that he was able to transition from his medical sales career to a full-time entertainer/actor.

James sought help from PFG after a very successful year where he had excess cash sitting in a bank account and knew he had to do something with it, but he didn’t know necessarily what needed to be done. James came to us to in hopes we could at least help with getting the money he had sitting in a bank account invested into the market.

To James’ surprise, there was much more PFG could do to help him in his new venture. PFG & James got together and developed a strategy which included investing and so much more:

  • The most important thing PFG noticed right away was that James hadn’t yet set up a business for himself and he was receiving compensation under his own name, combining his business and personal life. PFG was able to introduce James to a tax professional willing to help business owners. Through our collaboration, we were able to help establish an S-Corp for James to keep his professional and personal life separate, reducing his personal risk. From there, we were able to help work through all his business income and expenses and established a path forward so he could keep track of his books for accounting purposes. Because his income jumped so high suddenly, we were able to talk with him about making estimated tax payments to avoid any penalties.
  • PFG though their own network, was also able to introduce James to a new agency who would help finding valuable deals and opportunities.
  • PFG helped James establish a cash flow plan and now he has an idea of where monies need to go once they come in.
  • PFG worked with James to open investment accounts and helped him open his own Individual 401(k) where he could defer some of his income to help reduce his taxes and save for an early retirement.
  • PFG and James developed a plan to save enough money in an emergency fund and once that was adequate, save for a down payment on a home.
  • PFG helped educate James on the importance of insurance planning once he got married and started having kids.
  • PFG helped educate James on potential foundations/charities he could help run down the road.

James now understands that working with financial professionals is more encompassing than just investing. He was on the right path when he started by taking advice from his parents/friend/colleagues and save money in bank accounts, but he felt great now that he has a plan tailored to him and his unique goals and situation. As James continues to build on his current endeavor, he knows that his plan will evolve and change with him as he goes through his life.

Case studies may not be representative of the results of all clients and are not indicative of future performance or success.