👉 From Debt to Stability: How a Business Owner Became Debt-Free in 12 Months
The Client’s Situation
I met a small business owner in his 40s who was carrying a heavy load.
He earned about $80,000 a year, but most of his profit went to pay back family who had financed his business.
He was going through a divorce and raising a 10-year-old child.
He had $30,000 in a solo 401(k), but it came with high fees and was tied up in mutual funds he couldn’t easily touch.
On top of that, he had $8,800 in high-interest credit card debt, little savings, and no income protection if a health crisis hit
Like many business owners, he was working hard but felt like he was running in place.
High credit card interest was draining his cash flow.
His savings were scattered and not working for him.
He was contributing to a 401(k) he couldn’t use without penalty — while having no emergency fund.
He had no plan for income replacement if illness or injury stopped him from working.
I showed him how to redirect his money into a smarter plan that actually worked in his favor:
Stopped contributing to the solo 401(k) and rolled it into an IRA — saving him $800/year in fees.
Restructured his car insurance from full coverage to minimum liability (since his car was older and rarely driven) — freeing up an extra $133/month.
Used his cash reserves ($6,000 in money market + $1,200 in savings) to pay off the two highest-interest credit cards immediately.
Focused all freed-up cash flow ($883/month) to wipe out the last $5,200 card in less than 6 months.
By doing this, within a year:
He was debt-free.
He had built nearly $10,000 in savings for emergencies.
He had extra monthly cash to put toward future goals.
I also set him up with a temporary income protection plan that would cover 80% of his income if he couldn’t work. This gave him breathing room while he focused on improving his health.
When I reviewed his plan a year later, he had completely stopped smoking and improved his health. That opened the door for him to qualify for a good contract that:
Provides income replacement if he faces critical or chronic illness,
Builds long-term cash value he can access for opportunities or emergencies, and
Replaces the need for a separate disability policy down the road.
Converted his IRA to a tax free Roth IRA — without paying additional taxes.
He went from drowning in debt to completely debt-free in one year.
He built an emergency fund and gained true financial stability.
He secured income protection and, for the first time, had a clear roadmap for the future.
Retirement account went from taxable account to tax free account.
Acquired 2 properties during several years working together.
👉 This is why I say: I don’t just sell policies — I help clients restructure their money to work for them, not against them.