Client Profiles

Clients come to us at every stage of life, but often fall under these three areas:

 
Accumulation Financial Advice in Houston, Texas

ACCUMULATION

Toni & Veronica

Money Story: Toni and Veronica married right after college about six years ago. Each is employed full-time and they are renting a home. They each participate in their respective workplace 401(k) programs and Veronica also has a 401(k) from her first job that has never been touched.

 

Long-term goals include starting a family, saving for a down payment on a house, and paying off student loans. In the short-term they need to purchase a new car. Toni recently received a gift from her grandmother of $25,000 and they aren’t sure if the money is better used buying a car, paying off student loans, or saving for a house.

Toni and Veronica have a budget, but admit they rarely follow it. With so many big decisions in their future, they thought it best to consult with a financial planner. They are looking for advice on their 401(k) investment selections and contribution percentages, and are beginning to think about life insurance in addition to what is offered by their respective employers. 

Needs

  • Basic budget tools and tips to aid with spending and saving.

  • Homebuyer education, life insurance needs analysis and education. 

  • Student loan review and options for repayment.

  • Advice on 401(k) investment and contribution amounts.

  • Options for $25,000 gift.

Solution: Financial Planning Only 

1. MGP financial plan with budgeting tools.

2. Datapoints.com to assess risk, spending/saving behaviors and money scripts.

3. Get organized meeting to build and discuss goals for budgeting and emergency savings. Discuss life insurance options, 401(k) accounts, student loans and $25,000 gift.

4. Plan review meeting: Review financial plan and goals. Asset allocation analysis review and suggestions for implementation. 

5. Referrals to CPA for account advice/help or estate planner for wills and power of attorney (POA) options.

Pre-retirement Financial Advice in Houston, Texas

PRE-RETIREMENT

 

Melanie & Steven

Money Story: Melanie (57) and Steven (55) were married for 32 years before Steven died of cancer a month ago. They have four grown children and six grandchildren and were working and saving diligently towards retirement. Thankfully, Melanie and Steven have a will and life insurance in place. Melanie finds herself in unfamiliar territory and is in need of financial advice. They used an online company to draw up their wills and Melanie is worried about the validity. She is eager to talk with a professional about the will and upcoming probate and would like a referral. She also expressed concern about needing changes to her own will. 

 

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 Melanie is unsure about what to do with the remaining money. She did some preliminary research about their other investment accounts and has many questions about taxes, fees, and possible penalties. The children have started asking questions about the money, but Melanie and Steven were always very private about their affairs.

 

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 fear she has about making mistakes.   

Needs

  • An experienced advisor that 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.

  • A list of referrals for estate attorneys for probate and to evaluate current estate plan.

  • A plan for what to do with the funds from Steven’s life insurance policy and his other instevesment accounts. 

  • A CPA or help with taxes. Not just to file taxes but to answer questions and provide options.

  • A non judgemental 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: Financial Planning with Asset Management  

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. Access to online budgeting tools that are fully integrated with the MGP software to help Melanie understand her spending and savings habits.

6. Provide financial recommendations based on the MGP financial plan, advice from estate and tax professionals, and outcomes from Datapoints assessments.

7. Implement MGP financial plan recommendations and ongoing monitoring of financial assets.  

Retirement Financial Advice in Houston, Texas

RETIREMENT

 

Mildred & Roger

Money Story: Mildred (65) and Roger (69) 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 four 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 30 hours a week necessary to earn health benefits at their church. 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 took enormous pride in. 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

  • An experienced advisor willing to take the time to earn Roger’s trust and make Mildred feel comfortable.

  • Someone to work in concert with their new tax professional.  

  • Guidance about Mildred’s social security withdrawal options.

  • Estate planning review to include any wills, power of attorneys, and advanced medical directives.

  • Modeling possible future spending if one or both should need short- or long-term assistance later in life.

Solution: Financial Planning with ongoing advice

1. Through the lens of Financial Therapy, work to understand Roger and Mildred’s unique money story and learn how each thinks and feels about money, and how they currently manage their assets.

2. Build a comprehensive goals-based financial plan using Money Guide Pro (MGP) software to model different end-of-life scenarios.

3. Provide referrals for attorneys to review all important estate planning documents.

4. If possible, form an alliance with their tax professional to insure all questions and concerns are addressed.

5. Understand their unique risk profile, spending/saving behaviors, and money scripts using Datapoints software.

6. Provide a written, financial recommendation based on the MGP financial plan, advice from estate and tax professionals, and outcomes from Datapoints assessments.

7. Provide access to MGP software to enable ongoing analysis and modeling scenarios. Ongoing phone and email access to the OWM team, along with quarterly meetings and rebalancing recommendations of assets not managed directly by OWM.