Justin Williams, age 37, has just sold his business. His information technology firm—offering a central locus for data on state income tax credits—was acquired by a large national accounting firm for $2.5 million net after tax. Justin will receive a lump sum payment for his business at the end of three years, but as a condition of the purchase, Justin must work for the accounting firm for three years at his current salary of $150,000 per year. Once Justin’s three-year commitment is over, he no longer plans to work because he feels that he will be financially independent. He is certain that a 5 percent after-tax return on his investments over his lifetime is a reasonable expectation.

Like many entrepreneurs, Justin worked days, nights, and weekends to build the company and is looking forward to kicking back and relaxing. Justin plans to retire to a lake house—not yet purchased—and write the great American novel. He anticipates spending $500,000 to purchase the lake home and fix it up comfortably. Justin shares that life has been good to him, that he is happily single, and that he plans to live it to the fullest. And speaking of life: Justin plans to exceed his family’s longevity record of age 99 and make it to age 100.

Justin was referred to you by your Director of Information Technology, Eric Martinez, who has known Justin for ...

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