Challenge: Finding a Trusted Advisor
Soon after she was born her parents started an investment account for her. Over the years she learned the “language” of investing and as a teen she even attended a few meetings with their trusted financial advisor. As an adult, she retained the services of her parent’s trusted advisor until he retired when she was in her 30’s. At that time she decided to manage her finances herself.
As her career blossomed time constraints set in and she realized her growing nest egg needed attention. A friend connected her to a local trusted advisor associated with a bank and initially, she got lots of attention. But as time went by she rarely heard from her and when she did it was usually involved a pitch of some new investment. The taxable investment account her parents had set up was immediately liquidated without her consent thus causing a large tax bill. In addition, she was charged a percentage of assets under management, but also charged for when they invested her in something new.
After a few years she had had enough and decided to split the portfolio between two, nationally recognized low-cost broker dealers. They each assigned “a guy” she could talk to and each suggested a portfolio of stocks and bonds clearly put together by a computer and clearly designed to be in the best interest of the broker dealer – not her. This was not the relationship she wanted but her career kept her too busy to really address the issue. However, she realized she needed a trusted advisor like her parents had that combined on personalization, responsiveness and the ability to listen.
The Opportunity: Create a Relationship
At this point her investments were quite sizable and more complex. She had rolled over three 401k’s into IRA’s and had inherited a two more IRA’s. As a senior executive, she had a deferred compensation package that included stock options. The taxable investment account was now less of a strategy and more of a hodgepodge of stocks. She needed comprehensive financial planning that considered things like long term care, tax planning and philanthropic pursuits.
The Outcome: A Thoughtful Plan All Under One Login
She worked hard in her life and now wanted answers to when she could retire and what kind of lifestyle would she be able to lead when she did. She was an accomplished, articulate women who earned respect from her peers and co-workers. She had no tolerance for “man-splaining” but instead wanted financial partners to dialogue with so that her likes and dislikes were well known. She wanted to know what she was paying in fees and why she was invested in what she was invested in. If she was going to consolidate her holdings to one firm she expected a high service level.
Several investment options were presented and the mutually agreed upon approach was one that combined growth, downside protection and liquidity. As a high earner taxes were always an issue. We introduced her to a trusted accountant that would work closely with her and our team to make sure there were no surprises in April. Face to face meetings at least twice a year ensued and phone calls and emails were responded to quickly. A customized financial plan was created that continuously adjusted as her life evolved. She was able to retire a few years earlier than she expected and embark on the back half of a life filled with travel, charitable activities and time with loved ones.