Bonds: The Unbeaten Path to Secure Investment Growth

Chapter 18. FINANCIAL PLANNING WITH BONDS Case Studies

CHAPTER 17 DESCRIBES how an investor might use bonds in the investment-planning process. But let's put these theories to the test now and see how they pan out when the rubber meets the road. For most people, that happens when they realize they must plan for a life transition or when they suddenly find themselves faced with one. These events require decisions about how to proceed. Here, we'll present a number of case studies to illustrate the practical uses of bonds in planning for life transitions.

Critical Choices: Easing Life's Transitions

Each of the following case studies presents challenges and changes the person must confront. There are many ways to solve a problem. Here, we offer some possible solutions to coping with and smoothing out life's unexpected turns.

CHANGING COURSE

Earl, a lawyer, graduated from Columbia Law School and practiced as a corporate attorney at C & M, a large and prominent Wall Street law firm in New York. Earl learned a great deal in his first three years at the firm by working long hours on challenging legal matters. He also earned a great deal of money. Although his life at C & M was as he had expected, by the end of his third year, Earl came to understand that something was missing. He wanted to have more control of his own life, and he saw that this would not be possible if he continued to work at a large law firm.

To create better balance in his life, Earl visualized a plan to create a new law firm ...