Case scenario: Physician
Anne is an Anesthesiologist, age 62. She loves her job and wants to retire at age 65, but the recent
pandemic is making her reconsider this. She is wondering if she should retire now. She is an employee of a
local HMO and is a shareholder there. She is compensated $525K per year. She is recently divorced (was
married for 15 years - her ex-spouse is two years younger than her). She has two children who are grown
and out of college; however, her youngest was just accepted to medical school, and she would like to
contribute 50% of the cost if possible. She teaches one night per week at the local community college -
which is more of a hobby than a part-time job. As a result of her divorce and asset split with her former
spouse, Anne has full possession of her 401k but gave up the bulk of her investment account in the
settlement. She currently pays $2000/per month in alimony to her ex-spouse, set to expire upon her
retirement. She would like to help fund her future grandchildren's education. She has a Will which was
created 15 years ago with her ex-husband. Below are her current financials:
Vested HMO ownership stake consisting of restricted stock: $1.1MM
Non-vested HMO restricted stock totaling $800K
tranche (1) vests in 2023, $200k
tranche (2) vests in 2024, $300k
tranche (3) vests in 2025, $300k
401k: $2.1 MM
Brokerage account $200k
Traditional IRA: $550
Home: $750K
Condo, $400k rental property, she breaks even on the rent/mortgage
529: $0.00
Fixed annuity: $200k
