The Challenges

• Frank knows he has enough money to retire but is now focused on optimizing the investments, fees and taxes.

• Frank has money scattered with 5 different financial advisors and asset managers as he has supported different groups at various times over his career. He predominately meets with one of the advisors, but he is planning to retire in the next year.

• A main point of contact for their finances, that provides exceptional customer service, is important to them.

• Their investments, estate plan, and taxes are very intertwined. They would like to have someone overseeing the entire process and how the pieces work together.

• Given their frequent travel schedule and his golfing hobby, Frank and Carol are interested in private aviation options.

• Frank and Carol are extremely proud of how their children have grown up and are looking at ways to transfer money out of their estate to the kids.

• Philanthropy has become much more important to Frank and Carol over the past few years. They would love to encourage their children to give while also maximizing the tax advantages along the way.

• Because Frank and Carol are often way from home, they are interested in a firm that has robust digital capabilities for client meetings and processing paperwork.

The Result

After a thorough review of their finances and our financial planning modeling capabilities, the results are as follows.

• We identified cost savings in their current portfolio by consolidating advisors and reallocating to an indexed-based investment management style.

• Began transferring substantial assets from their estate to their kids through the use of direct yearly giftings and paying for the grandchildren’s education.

• From time to time, Frank enjoys participating in private angel investment opportunities. By opening a line of credit against his liquid assets, he now has the ability to write checks without selling assets at inopportune times.

• We reviewed the pros and cons of fractional ownership vs. jet cards. After deciding on a credit program, we were able to introduce him to companies that other clients have utilized.

• Frank has well over seven figures in his 401k plan. We looked at the benefit of converting these assets to a Roth IRA after retirement. Depending on the current market environment and tax laws, he may utilize this strategy to pass post-tax assets to his children.

Disclosure: The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. All scenarios and names mentioned herein are purely fictional and have been created solely for training purposes. Any resemblance to existing situations, persons or fictional characters is coincidental. The information presented should not be used as the basis for any specific investment advice.