Character Profiles
We serve clients in every chapter of life.
ACCUMULATION
Veronica & Tony
Money Story: Veronica (41) and Tony (38) married right after college. Veronica works for a Big Four Accounting Firm and is on the partner track. She is a member of the Junior League and volunteers for a local philanthropic organization. Tony owns his own dental practice and is involved with their neighborhood church men's group. They have two kids, each in private school, and own their own home.
Long-term goals include purchasing a second vacation home/investment property, maximizing their existing investments, and paying off Tony's dental school loans. In the short-term, they need advice on how to best utilize a $250,000 gift from Tony's grandmother.
Tony and Veronica have a budget, but admit they rarely follow it. With major financial decisions in their future, they thought it best to consult with a financial planner. They are looking for advice on their current investment selections and contribution percentages, and are beginning to think about life insurance outside of what is offered by their respective employers.
Needs:
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Budget tools and tips to optimize spending and saving.
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Life insurance needs analysis and education.
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Student loan review and options for repayment.
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Advice on 401(k) investment and contribution amounts.
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Options for $250,000 gift.
Solution: Planning, Advice, Asset Management (PAAM)
1. Financial plan with budgeting tools.
2. Psychometric risk assessment, exploration of spending/saving behaviors and money scripts (Financial Therapy).
3. On-going meetings to discuss life insurance options, assets management implementation, student loans payoff options, and investment options for the $250,000 gift.
4. Annual reviews: financial plan and progress towards goals will be evaluated. Investment allocation, performance, and future adjustments discussed. Savings, spending, or investment modifications will be analyzed with the aims of increasing probably of achieving long term goals.
5. Referrals to CPA for account advice/help or estate planner for wills and power of attorney (POA) options.
PRE-RETIREMENT
James and Charlotte
Money Story: James (57) and Charlotte (56) both work in the oil and gas industry. They're not native to Houston but moved here as soon as they could. They own properties in multiple states and, upon retirement, are looking to move to the Pacific Northwest. Their kids are of the four-legged variety.
Changes in the market have caused their investment portfolios to grow significantly. James and Charlotte have a complex, corporate benefits package and they need to determine their best long-term options.
James use to enjoy monitoring the investments, but now the risk is too high for a mistake, and he is looking forward to passing off some of that responsibility.
They both agree working for a few more years could yield more for their portfolio; however, they want to maximize their non-financial life as well.
Steven reassured Melanie that she would have more than enough money after he died, but she wants to know if this is really the case. If so, Melanie knows she needs to hire an advisor who can answer her questions about taxes and fees and reduce her fears about making mistakes.
Needs:
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A strategy delivered in a manor that empowers both partners to feel confident in their financial future.
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Advice on how to maximize their corporate benefits.
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Guidance on how to retire or semi-retire before the age 59.5.
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Strategies to turn their investment nest egg into retirement income.
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A CPA that can advise on their current assets that will match their long term plans.
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Introduction to Estate Planning and Long Term Care (LTC) solutions.
Solution: Planning, Advice, Asset Management (PAAM)
1. Build and design a goals-based financial plan using Money Guide Pro (MGP) financial software.
2. Psychometric risk assessment to uncover and understand James and Charlotte's unique risk profiles, spending/saving behaviors, and money scripts using Datapoints software.
3.On-going meetings to discuss assets management implementation, referrals to CPA, estate planner for wills and power of attorney (POA), and possible LTC options.
4. Annual reviews: financial plan and progress towards goals will be evaluated. Investment allocation, performance, and future adjustments discussed. Savings, spending, or investment modifications will be analyzed with the aims of increasing probably of achieving long term goals.
RETIREMENT
Mildred & Roger
Money Story: Mildred (65) and Roger (74) are each in good physical health and optimistic about the future. After 45 years in the workforce and a lifetime of raising children, they are enjoying the fruits of their labor. Roger retired eight years ago from a large multinational corporation with a pension and 401(k). He immediately started drawing his social security and selected the withdrawal option of joint life with 50% survivorship on his pension. Mildred works at their church for 36 hours a week, which is necessary to earn health benefits. Now that she is 65 and qualifies for Medicare, Mildred is thinking of quitting to spend more time with Roger. Another reason Mildred is considering retirement is that she has noticed Roger slowing down around the house and becoming a bit more forgetful.
Mildred is not drawing her social security benefit. She believes her benefit might not be much because of her many years as a homemaker. She has no pension or other personal retirement assets. She received an inheritance when her father passed away five years ago and she and Roger used that money to pay off their mortgage.
After years of filing his own tax returns, Roger finally hired a tax professional. He also started to outsource some of the chores he once enjoyed and were a source of enormous pride. Roger says he has earned the break from working around the house and the stress about the taxes. Mildred agrees and is curious if Roger might be willing to talk to someone about their other finances. Roger agrees that having an advisor in place might be a smart plan should something happen to him.
Needs:
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An experienced advisor willing to take the time to earn Roger’s trust and make Mildred feel comfortable.
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Someone to work in concert with their new tax professional.
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Guidance about Mildred’s social security withdrawal options.
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Estate planning review to include any wills, power of attorneys, and advanced medical directives.
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Modeling possible future spending if one or both should need short- or long-term assistance later in life.
Solution: Planning, Advice, Asset Management (PAAM)
1. Build and design a goals-based financial plan using Money Guide Pro (MGP) financial software.
2. Psychometric risk assessment to uncover and understand Roger and Mildred's unique risk profiles, spending/saving behaviors, and money scripts using Datapoints software.
3.On-going meetings to discuss assets management implementation, working with new CPA, referrals to estate planner for wills and power of attorney (POA).
4. Annual reviews: financial plan and progress towards goals will be evaluated. Investment allocation, performance, and future adjustments discussed. Savings, spending, or investment modifications will be analyzed with the aims of increasing probably of achieving long term goals.
DIVORCE
Jennifer
Money Story:
Jennifer (45) has been a homemaker for the past 9 years and after 17 years of marriage, she finds herself in the middle of a divorce. She and her soon-to-be ex-husband jointly own multiple commercial properties and have substantial investments held in various trusts. They have three children who range in age from 9 to 14.
Jennifer, a former district attorney, has not worked full-time for the past 9 years. She is familiar with most of their investment holdings, but the family’s financial advisor is a close friend of her soon-to-be ex-husband. She is seeking a consult to ensure her interests are not being overlooked.
She is keenly aware of the emotional and financial pitfalls that lie ahead. She wants to ensure a secure future for herself and her children. Determined to take control of her financial situation, Jennifer starts by gathering all the necessary documents related to the jointly owned properties and investments.
Realizing the complexity of the situation, Jennifer decides to consult with a reputable family law attorney specializing in divorce and asset division who suggests hiring an independent financial planner who can conduct a thorough analysis of their assets, ensuring a fair division during the divorce proceedings. Often, the judge or arbiter only looks at the actual numbers to determine what is equal, but Jennifer knows that numbers alone don’t always paint the full picture.
Needs:
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An unbiased and objective analysis of her financial situation, ensuring her interests are considered and biases are mitigated.
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A thorough evaluation of her multiple properties and investments, considering market trends, growth potential, and associated risks.
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Someone to walk her through the legal aspects of divorce and asset division, including tax implications, asset valuation, and equitable distribution.
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A comprehensive financial strategy and plan based on Jennifer's goals, current situation, earning potential, and desired lifestyle.
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An advocate throughout the divorce process, communicating with her attorney, offering expert opinions, and assisting in negotiations.
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Education, resources, and tools to enhance Jennifer's financial literacy and empower her to make confident decisions about her future.
Solution: Planning, Advice, Asset Management (PAAM)
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Asset selection strategy that evaluates Jennifer's assets, providing insights into their potential growth, risks, and market trends to aid in making sound investment decisions.
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Emotional support and guidance to navigate the financial aspects of divorce, providing a holistic approach that addresses both financial and emotional well-being.
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Current budgeting/planning during separation and forecast post-divorce, which includes a budget and financial plan during the separation phase, ensuring Jennifer’s immediate needs are met as well as a projection of future financial scenarios to help her plan for life post-divorce.
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Account setup with guidance on asset movement, ensuring a smooth transition into the post-divorce phase.
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Budgeting and retirement planning, considering both short-term needs and long-term goals, and incorporating financial considerations to align her financial plan with her aspirations.
LOSS OF A PARTNER
Melanie
Money Story: Melanie (57) was married for 32 years before her husband, Steven (55), died of cancer a month ago. She has four grown children and six grandchildren. Prior to his death, Melanie and Steven were working and saving diligently towards retirement. Thankful, Steven and Melanie each had a will and life insurance in place.
Steve has been loyal to financial firm for decades, but Melanie never felt comfortable with the last advisor assigned to their accounts. Melanie finds herself in unfamiliar territory and is in need of financial advice from someone she really trust.
Melanie also received a large check from Steven’s life insurance policy and she deposited it into her savings account, but is worried about FDIC coverage. All expenses related to Steven’s death are paid and she is unsure about what to do with the remaining money.
Melanie did some preliminary research about their investment accounts and has many questions about taxes, fees, and possible penalties. She wants to work with someone that has her best interest first and is open to someone new.
Melanie and Steven were always very private about their affairs and the children have started asking questions about a protentional
inheritance. She is anxious about how to talk to the children about money.
Steven reassured Melanie that she would have more than enough money after he died, but she wants to know if this is really the case. If so, Melanie knows she needs to hire an advisor who can answer her questions about taxes and fees, but more importantly reduce her fears and anxiety about making mistakes.
Needs:
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An experienced advisor who is comfortable talking with clients and more importantly, listening to clients talk about their emotions and fears as they move through the stages of grief.
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A list of referrals for estate attorneys for probate and to evaluate current estate plan.
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A plan for what to do with the funds from Steven’s life insurance policy and his other investment accounts.
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A CPA or help with taxes. Not just to file taxes but to answer questions and provide options.
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A non judgmental space to work through the tough questions. Back to work? Sell the house? Do I need to change my life insurance beneficiaries? Should I give some of the money now? What about college savings for the grandchildren?
Solution: Planning, Advice, Asset Management (PAAM)
1. Through the lens of Financial Therapy, provide a safe place to express feelings and fear about the recent changes in her personal and financial life.
2. Provide referrals for estate planners and tax professionals. If possible, form an alliance with other professionals to insure all questions and concerns are addressed.
3. Build and design a goals-based financial plan using Money Guide Pro (MGP) financial software.
4. Uncover and understand Melanie’s unique risk profile, spending/saving behaviors, and money scripts using Datapoints software.
5. On-going meetings to discuss changes near-term financial goals, assets management implementation and analysis, address estate planning changes, and respond to any personal or financial adjustments after the loss of Steven.
4. Annual reviews: financial plan and progress towards goals will be evaluated. Investment allocation, performance, and future adjustments discussed. Savings, spending, or investment modifications will be analyzed with the aims of increasing probably of achieving long term goals.