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Real Stories. Real Life.

How Should We Invest After An Inheritance?
Bob and Mary are in their Mid-50’s and have been married for 30 years. Mary just received a large inheritance and they need advice.
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Can We Retire When We Want?
We met Tom & Sue when they were in their mid-50’s.
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We Think We’re Doing Well.. But Are We?
We met John and Julie when they were both 43 years old. They were doing very well, but still had concerns.
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How Should We Invest After An Inheritance?

 

Bob and Mary are in their Mid-50’s and have been married for 30 years. Bob had always managed their investments
but things were getting a bit more complicated with the when Mary received a large inheritance.

  • They have two grown financially independent children
  • Substantial savings in 401K and IRA accounts (nearly $1 million)
  • No debt
Life Event/Change:
  • Mary has received an inheritance of $900K
Questions and Concerns:
  • Is our portfolio too big for us to continue to manage ourselves?
    Do we have time?
  • Are our funds in the right place? Can we retire when we want to?
  • What if the country goes through another “201K” scenario? We have a lot more to lose now.
  • Now that we have more money, should we set up a trust for our kids?
  • We have wills, but do we need a more sophisticated estate plan?

Bob and Mary were a bit skeptical about hiring an advisor but received a referral from their accountant.
They soon met with Steward Advisors and discussed:

  • Bob and Mary’s lifestyle, family and children
  • Goals for retirement
  • Concerns about risks in light of economy and new wealth
  • Pros and cons of trust funds and estate plans
  • Discussion about the Steward Approach as RIAs

Feeling very comfortable after their meeting, Bob and Mary agreed to have Steward create a
comprehensive financial plan.

  • Reviewing current investment portfolio/insurance policies and tax returns
  • Using the Steward Riskalyze® tool to determine risk/reward investment comfort level
  • Creating a household balance sheet/cash flow model with projections through retirement
  • Diversifying their portfolio, including alternative investments
  • Using a computerized mathematical technique (a Monte Carlo simulation) to help quantify the probability of a financially successful retirement

Bob and Mary were happy with their plan and felt confident that Steward could manage their full
portfolio including all future planning and investment needs so soon hired Steward based on an annual
retainer.

Steward Services Have Included:
  • Quarterly meetings to review portfolio/financial status, current economic and market conditions 
  • Updating balance sheet, cash flow projection and Monte Carlo simulation of retirement success
  • Periodic rebalancing recommendations in accordance with target investment portfolio
  • Strategies to coordinate taxable & tax deferred accounts
  • Implementation of a risk management (insurance) plan
  • Long Term Care policies in place; financial security for both spouses
  • Peace of mind - expert caring help if there is a crisis
  • Partnering with their tax accountant to manage the portfolio in tax efficient manner
  • Partnering with estate planning attorney to create an estate plan, including trusts
  • Establish tax efficient charitable giving

Are you in a similar situation? We'd be happy to talk. Contact us for the full case study or to discuss your unique situation.

This case study is hypothetical but based on a real client situation

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Can We Retire When We Want?

 

We met Tom & Sue when they were in their mid-50’s. They had worked hard and were happy that retirement
could soon be around the corner.

  • They have two grown children and three grandkids
  • Hold significant assets in 401K and IRAs
  • Seven years remain on $75K mortgage
  • No other debt
Life Event/Change:
  • Looking towards retirement and want to make sure they are financially prepared
  • Sue’s mother was in declining health/support needed
Questions and Concerns:
  • Did they have enough money to retire on their own timetable?
  • Could Sue stop working in the next 4-5 years? Could Tom retire at 63?
  • How would financially supporting Sue’s Mom impact their retirement goals?
  • They envision an active retirement including travel
  • Do they need more than a will?

Tom and Sue met Steward Advisors through a mutual friend and then met with Steward to discuss:

  • Current lifestyle, family and children
  • Goals for retirement
  • Details about Sue’s Mom’s health
  • The Steward Approach as RIAs

Tom and Sue asked us to develop a comprehensive financial plan:

  • Used the Steward Riskalyze® tool to determine risk/reward investment comfort level
  • Reviewed current retirement plans/investments and recommended adjustments to better align goals
  • Reviewed tax returns and recommended tax efficient investments
  • Offered options on how to provide long-term financial support for Sue’s Mom
  • Determined if long term health care planning was a consideration for Tom and Sue
  • Created a retirement income analysis and insight on potential retirement ages
  • Coordinated with an estate planning attorney on estate plan or trust
Tom and Sue are happy and feel like they are on the right track.
  • Retirement goals met; both Tom and Sue retired at 63
  • Met with Steward at least twice a year to review cash fow and net worth trends
  • Continued to ask about real life issues, including Sue's Mom's health
  • Ensured IRA withdrawals were taken in timely and tax efficient manner
  • Developed a Social Security claiming strategy to maximize benefits

Are you in a similar situation? We'd be happy to talk Contact us for the full case study or to discuss your unique situation.

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This case study is hypothetical but based on a real client situation.

 


We Think We’re On the Right Track But Are We?

John and Julie were 43 years old when they were introduced to us by a current client.

  • They had eight and six-year old children but had not established a college savings plan
  • Aside from a $200K mortgage and a small auto loan they were debt free
  • 401K savings ($350K)
  • Roth IRAs worth a total of $150K
  • Yearly income of $225K (considered affluent)

They had a few concerns, and wanted to have an open discussion with an advisor they could trust.

Questions and Concerns
  • Overall, how were they doing? Do they have “enough” money? And what is “enough?”
  • John has a new job and concerns about his old 401K fund; how to manage his increased salary
    and how to fund his new 401K plan
  • How do they start funding their children’s education? Did they wait too long?
  • They are young; how are they doing compared to others in a similar financial situation?
  • When can they reasonably retire? It’s been a dream to retire at 60.

We met with John and Julie and had honest discussions about their family, current lifestyle, short and long term goals and answered all their questions. We also went through a few exercises that helped ensure our recommendations would match their long term goals.

  • Determined their risk tolerance using the Steward Riskalyze ® tool questionnaire
  • Implemented a value clarification exercise to ensure financial decisions matched family values
  • Reviewed their current assets and liabilities including funds associated with the 401K savings, Roth IRAs, mortgage interest rate, tax return review, monthly expenses and current savings rate

We then developed a unique financial plan to help them stay on track.

  • Household balance sheet created to help quantify best practice for spending vs. saving in their unique situation
  • Education fund strategy with options based on selection of public or private schooling
  • Cash flow model with projections through retirement that included John’s new additional contribution in salary
  • Used a computerized mathematical technique (a Monte Carlo simulation) to help project and quantify the probability of a financially successful retirement
  • Identified savings needed to meet early retirement goals
  • Reviewed insurances to determine appropriate coverages and policy types

John and Julie are now both 50 and here’s a look at what they’ve accomplished:

  • Have a financial plan that helps monitor staying on track to meet their own goals including retirement goals
  • Are receiving investment recommendations coordinated for the whole portfolio
  • Retirement assets are separate from current taxable money to meet goals
  • Receive 401k recommendations that are matched with their other asset considerations
  • Portion of salary increase going to fund 529 education accounts
  • They have a personal relationship with an Advisor that cares and will continue to support them and discuss adjustments as life changes

Are you in a similar scenario? Contact us for the full case study or to discuss your unique situation.

This case study is hypothetical but based on real client situations

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