Copper Beech Advisors Blog

Buying the Stairway to...Retirement?

What is your plan for making the transition from working life to retirement? Will you need to depend on money that you've saved while you were working?  Most people do. 

How then will you replace your paycheck in a way that is dependable and gives you the confidence that you will be able to weather any financial storms that may arise? 

Consider building a bond ladder.

Imperfect

At the end of the day, your life does not fit any perfect guidelines as you encounter the ups and downs that make life interesting.  Being prepared for both is fundamental to financial piece of mind and to being confident that you are able to handle every situation.  Cash flow is where the rubber meets the road.  How you use it determines how well prepared you are.

But how does this fit into a Stock Options discussion?  In the first part of this series we looked at how to use stock price to make the best decisions about when to exercise your options.  In the second part we added taxes to the mix, showing you how to use the flexibility of owning executive stock options to achieve the best tax result. 

Now we will add the last key to the puzzle.  Making sure that your life is integrated with your stock options decisions to give you the greatest peace of mind and least amount of stress.  

I Make a Good Income

Do you make a good income but feel like your spending is out of control? Are you surprised that despite having a good job, you consistently feel like you're spending more than what's available? 

First, let's identify one of the problems.  Credit Cards.  Yes, in today's world of instantaneous electronic payments and impulse buying at the click of a smartphone, credit cards are a primary reason why your spending may be out of control.  But why?

Credit Cards

Credit cards are where the rubber doesn't meet the road.  That is because your credit card limit is typically higher than whatever your monthly income is.  While you may have a general idea of how much you think you can spend, it can be surprising how quickly the $100 or $200 purchases add up to thousands.  If you have a spouse who uses the same card, multiply times two.  Put two people spending indepdently into the mix and it's not hard to see how spending can grow, seemingly on it's own. 

Is there a better way?  Thankfully the answer is YES.  You establish a set amount that you can spend before hand and then spend until the money runs out and no more.  Easier said than done, right?  Here is how you do it.