Daisy - 71 year old widow who planned well financially and now wants to ensure she is investing wisely, simplify her accounts, and smoothly pass assets on to her children.
(These hypothetical examples and other information presented regarding the likelihood of various conclusions, are hypothetical in nature, do not reflect actual clients or outcomes, and are not guarantees of future results.)
Daisy is 72 years old and retired from the local bank just over 5 years ago. For over 40 years Daisy and her husband Bob saved and prepared for a long retirement together. Sadly, cancer had other plans, and now Daisy was facing retirement solo. She did have her Bible, her close group of ladies who meet every week, and a determined attitude. She was ready for this next phase of her life.
Thankfully, Bob and Daisy had planned well financially and their children are healthy and on their own. Finances didn’t worry Daisy. Life was so much simpler now than it had been in the past. She wanted to ensure she invested wisely and did not make any big mistakes. She also wants to trim down the number of accounts she owns. Through job changes and moves, she had accumulated seven investment accounts, not to mention the various savings accounts, CDs, and money markets.
Daisy’s main goals are to:
- Invest wisely and ensure that her portfolio is measured against established benchmarks
- Trim down the number of accounts she owned. She knew further consolidation would help her track investments more easily and reduce stress.
- To take her required minimum distributions (RMDs) the right way. She knew she needed to take them soon and manage taxes and risks properly.
- For her assets to pass smoothly to her children, minimizing trouble and taxes when she is gone.
- To pay reasonable fees and know exactly how much she is paying.
Daisy had received help from a financial advisor in the past. She liked him at first, but as the years passed, she felt like he was often trying to sell her something. Many times there was some new product that he thought she should invest in. Sometimes, she was more confused leaving his office and felt like he was speaking quickly, using terms she did not fully understand. She mostly trusted that he was doing the right thing, but for years there had been some underlying skepticism in her mind and she wanted a second opinion.
The team at Larson Wealth Management scheduled a complimentary initial meeting with Daisy to discuss her goals, income needs, and attitude toward risk. The team listened closely and acknowledged her concerns, knowing they could help her with these important decisions using a simple agenda and some thoughtful discussions, rather than a full written plan. They also offered to send Daisy their meeting notes after each meeting, to ensure everyone remained on the same page.
For many months Daisy had been planning to change advisors, and the meeting with the LWM team was the third group she interviewed. After the first meeting with the LWM team, she felt ready to move forward, but her diligence caused her to pause, write down more questions, and schedule a “regroup” meeting two weeks after the first one. At the “regroup” meeting, she decided to move forward and bring over $750,000 of her invested assets. She elected to have her financial planning and asset management fees deducted from her accounts, rather than write a check for the planning fee. She feels the fees are very reasonable for the services provided and was excited that the number of investment accounts went from seven down to three. The team also helped her decide the best way to consolidate her cash accounts at her primary bank, simplifying her life and reducing stress even further.
Over the course of three meetings, the team prioritized Daisy’s goals and gave her a clear list of action items they helped her implement. Now she feels great, knowing that all of her goals have been met, and her fees have actually come down, even with the higher level of service.
She meets with the team once per year to review her allocation, manage the distributions from her accounts, and discuss anything else that comes up throughout the year. She also checks in with the team from time to time between meetings as questions pop up and she desires their input.
Daisy feels much more confident, knowing she has a team on her side to help her manage her funds wisely during her lifetime, and also to see them through to the next generation. Now, each time Daisy leaves her advisor’s office, she knows she is no longer paying for a product. Now she is paying for advice, clarity, and a relationship with a team she trusts.