Our client is a litigation attorney that receives his income in large chunks. He can go for 2 – 3 – 4 years or more making a good living at $150,000 per year. Not an especially large income in and around New York City but enough for a family to get by especially since they are frugal and careful with their money.
Periodically he develops a few large case opportunities. Settling those larger cases can result in his income jumping to $500,000 then $1,200,000, then dropping to $650,000 then back down to his base salary of $150,000. The challenge is to create a retirement plan which is appropriate, simple, economical and flexible enough so they can put more money away in the ‘fat’ years, and less or none in the ‘lean’ years. In the past, our client put away as much as $100,000 into a retirement plan and this past year they did not put any money away at all.
The other challenge is to help him manage his cash flow year to year and make sure he has cash available from the fat years for emergency purposes in the lean years.