Planning for the Future: Savings and Retirement

13 Pages Posted: 6 Nov 2019

See all articles by Gregory B. Fairchild

Gregory B. Fairchild

University of Virginia - Darden School of Business

Tierney Fairchild

Independent

Brian Hunt

University of Virginia - Darden School of Business

Christina Black

Independent

Abstract

Marcy and Dan were high school sweethearts who married young and built a life together. Between Marcy's work as a waitress and Dan's as an electrician, they have raised their now-teenage children with a lot of hard work and sacrifice. While at lunch with a group of friends, Marcy hears about her friend Diane's mother, who, due to a lifetime of poor financial planning, has had to move in with Diane, putting a strain on Diane's finances and marriage. While saddened to hear about her friend's misfortunes, Marcy realizes she needs to consider her and Dan's future and their lack of retirement savings. She and Dan meet with a financial planner for help with retirement planning, and they learn about their options for saving and investing.

Excerpt

UVA-F-1869

Aug. 9, 2019

Planning for the Future: Savings and Retirement

Introduction

Marcy enjoyed her monthly lunches with her friends. She ordered another glass of wine as the conversation moved from the challenges of raising teenage children to the large list of “to-dos” that never seemed to end. This was their fifth lunch gathering since they had all decided after their 20th high school reunion to meet more regularly. With all the demands of their lives—marriages, kids, jobs—they did not see each other often enough, and their regular lunches kept them close and in touch.

Marcy found great comfort in these get-togethers, and she welcomed the break from her daily routine. After marrying her high school sweetheart, Dan, she had spent 18 years as a stay-at-home mom. She had also taken online college courses to get a bachelor's degree in elementary education and worked as an IHOP waitress when money was tight. Together with Dan's work as an electrician, they were able to raise three teenage children, but it had taken hard work and sacrifice. Now, she and Dan were more financially secure than they had been when they were first married. With her current job as a substitute teacher, Marcy finally felt that she could indulge herself with a nice lunch with her friends.

. . .

Keywords: Resilience Education, retirement, investing, saving, compound interest, personal finance, risk tolerance, bonds, certificates of deposit, 401(k), IRA, mutual fund, stocks

Suggested Citation

Fairchild, Gregory B. and Fairchild, Tierney and Hunt, Brian and Black, Christina, Planning for the Future: Savings and Retirement. Darden Case No. UVA-F-1869. Available at SSRN: https://ssrn.com/abstract=3438631

Gregory B. Fairchild (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/fairchild.htm

Tierney Fairchild

Independent

No Address Available

Brian Hunt

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Christina Black

Independent

No Address Available

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