A couple came to us with a large portfolio that included over 200 sizeable investments. These holdings, accumulated over long careers were held in a large number of accounts across many investment organizations. Now approaching retirement, they sought to better organize their portfolio and establish a clear financial plan.
THE SITUATION
- Holdings included individual Stocks, Bonds, ETFs, Mutual Funds, closed end funds, precious metals and private equity
- Large number of investment accounts, across multiple investment firms
- Significant un-invested cash balance with no short-term needs
- There was no good way to evaluate investment performance
- Little attention was paid to tax-efficiency
- Large concentration of individual equities without any active monitoring
- Missing original cost basis on older investments
- Unable to get a clear picture of their collective net worth
- No one was providing investment or planning guidance that captured all the moving parts
- Married, with one adult son
- No estate plan
- Would like to gain control of all assets and establish a singular, cohesive financial plan
OUR APPROACH
- Brought all of the different investment accounts into a single portfolio
- Determined cash-flow requirements to support monthly lifestyle spending needs
- Developed an appropriate asset allocation model
- Significantly reduced the number of holdings
- Researched all older investments to determine cost basis
- Eliminated concentrated equity positions
- Invested surplus cash into the new portfolio
- Improved tax-efficiency through asset selection and location
- Delivered a comprehensive online dashboard that provides visibility of portfolio holdings and performance
- Created a financial plan that addresses current portfolio investment strategy, considered additional capital contributions, retirement and inheritance and potential estate tax liabilities
- Established generational transfer plan
COLLABORATING WITH SPECIALISTS
- Recommended an accountant to identify timing and sequencing of equity sales and provide for administration
- Provided an introduction to an estate attorney to establish and document inheritance plans
- Established trust and retirement investment vehicles for benefit of son
- Coordinated with Insurance professional on Umbrella, P&C requirements
- Reviewed long term care and current health insurance options with provider
- Connected client with VIP auto dealer to support purchase
SIGNIFICANT RESULTS
- Portfolio is now operating with full transparency
- Implementation of plan is now enabling proactive management
- Additional family members have been referred in for similar planning
- Client’s desired succession plan is now enabled
