“We sometimes speak with potential clients who expressly ask us to ‘manage my portfolio’—in essence, simply monitor investments. We explain that in so doing we’d be ignoring all the other factors that significantly impact a client’s financial life, and request that they let us undertake a thorough review of their finances only after sitting down with them to identify and clarify their goals. One couple, who initially thought any goal setting beyond “maximize our investment” was unnecessary, came to realize its importance when we pointed out the vulnerabilities in their initial, investment-only plan.”
An investment plan with a poorly constructed estate plan meant that the client was potentially taking on unnecessary risk, with the government being the biggest beneficiary of the future gains.
Estate documents detailing how assets would be divided among children and charities did not include the proper follow-through to ensure those wishes would be carried out. We recommended a few simple steps such as changing the titling on some accounts and adjusting beneficiaries.
Client’s portfolio diversification had been based wholly on containing both equity and fixed income securities. We designed a portfolio allocation that was consistent with their ultimate goals. The new portfolio focused on generating cash in both the right timeframe and the amount needed to support their desired retirement lifestyle, while simultaneously building a legacy for their children and grandchildren.