Millionaires in the Making: Benefits Lawyer

Posted on June 8, 2007

The latest edition of CNNMoney’s Millionaires in the Making documents George and Wendy Cicotte’s track to becoming a millionaire. It certainly helps that George makes $175K a year owning his own law firm, however some challenges he faces are raising and educating all seven kids. They plan on earning 9% a year on retirement savings, which would put them in the $4 million area at 60 which is when George plans to retire. From that point in 2027 when he turns 60 he plans to draw $200K a year from his retirement plan and then five percent thereafter.

Age: George, 39 and Wendy, 33
Occupation: Benefits lawyer and homemaker
Salary: $175,000 a year
IRA and 401K: $263,000
Bank Savings: $15,000
Home equity: $90,000

CNNMoney.com expert’s recommendation:

May have to drop level of contribution to 401K and IRA when kids are cycling through college. As soon as college expenses are completed will need to bump up retirement savings level.
Current retirement savings in 2045 targeted retirement fund. May want to pull that back to the more conservative 2035 targeted retirement fund to reduce volatility.
Save one half of a year’s salary for George’s 6 month sabbatical.
Increase emergency savings fund from $15,000 to $50,000 to protect against George losing income.

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