Results

Client 1: Inheritance managed with a fee-only mentality; saving taxes and maintaining liquidity.

Situation: A client with a lifetime experience of modest income inherited a securities account worth nearly $2 Million dollars. They needed to update their estate documents, make transfer arrangements and put together a plan for a wisely managing their inheritance.

Actions: We coordinated the mechanics of transferring the inheritance with the trust that was managing the assets, and created accounts at TD Ameritrade to custody the new accounts for the clients. After we went through the estate planning process, we created a tax and income strategy designed to protect the account and make it last. Pursuant to that strategy, we maintained most of the client’s existing holdings for continued tax deferral, unlike other members of the family whose advisors immediately moved them into restricted mutual fund and annuity accounts. As time went on and tax laws became more favorable, we began liquidating these holdings into a more diversified group of portfolios.

Outcome: The clients continue to enjoy the benefits of these inherited accounts, and have had very manageable tax consequences in spite of the capital gains requirements of their inheritance. They have also had good success with the market. They are in the process of buying recreational property and appreciate both the liquidity of our managed accounts, and the fee-only framework which allowed us to move in the right time for the client’s benefit instead of the immediate commission driven transactions their family experienced.

Client 2: Estate plan assistance, income planning and investor education.

Situation:A 70 year-old client’s husband passed away and left her a large IRA and an unexpected insurance inheritance. With no heirs of her own other than an elderly sibling, she wanted to make sure she maintained a healthy income and that the inheritance was distributed among her sibling’s children and her husband’s daughter.

Actions: Our attorney made the necessary changes to her portion of the family trust (which hadn’t been reviewed by her drafting attorney in over 10 years), and we created a long term growth and income plan, using a mix of buy and hold and active asset management strategies.

Outcome: The recommended strategy has provided her with income and freedom. Frequent reviews of her estate plan have resulted in changes to her distribution plans as her family has evolved. We have helped her make significant purchases such as a new Condo and car. She is an engaged client, but has little experience investing. We have therefore continued to spend significant time with her helping her understand her options and making wise decisions.

Client 3: Retirement planning and risk management, even as retirement nears.

Situation: After spending 40 years teaching and researching at a local University, this client decided to retire. He came to us for help with his 401k rollover and to make sure his estate plan was coordinated with his investments and real estate. His 401k was in excess of $600,000 and he realized he needed professional money management.

Actions:After appropriate wealth planning, we primarily recommended active management to mitigate risk and achieve continued competitive growth. As the client moved out of state, his portfolio has needed to provide him with increased income to offset the slow sale of local ranch property

Outcome: This added income and a proper understanding of the consequences of Required Minimum Distributions have allowed him to purchase new property in his new state while reducing tax liabilities .

If you would like to meet with us to learn more about how we put our clients first, or for a valuable second opinion, we invite you to contact us.