Dr. and Mrs. Cherry - Highly-educated, long-term prudent investors who desire clarity in their retirement plan to continue to be faithful stewards.

Dr. and Mrs. Cherry have lived in Harrisonburg for over 35 years. They are savers and have invested diligently for as long as they can remember. They have built up well over $3,000,000 in their retirement plans and other investment accounts. The vehicles they drive are over 10 years old. The Cherrys give at least 15% of their income each year to their church and organizations they care about.

Retirement is right around the corner. Dr. and Mrs. Cherry know they would like to partner with an advisor they can trust to help them make the very best decisions with their money. However, they are also skeptical of investment advisors, because they feel like they have overpaid in the past for sub-par service.

As prudent and highly-educated investors, this wise couple knows the vast majority of “actively managed” funds underperform index funds. This causes them to question if it makes sense to pay a financial advisor to manage their money for them.

Several very important decisions lie ahead of them. This is what is running through their minds:

• When should Dr. Cherry retire?
• What should our strategy be for optimizing Social Security?
• How should we take the hospital pension? Lump sum? Life payout? What about survivor options?
• How should our retirement accounts funds be withdrawn in retirement?
• What is our optimal level of risk given our long life expectancies and the amount of money that we need to live on?
• How can we set up our estate properly so that everything passes smoothly when we are gone?
• How can we be more tax-efficient?
• What are we missing?

During the initial meeting, the Cherrys asked thoughtful questions to the team at LWM. The team gave them several good ideas and answered 100% of their questions clearly and concisely. After the initial meeting, the team at LWM quoted a flat fee of $5,000 to create a custom, written financial plan.

Dr. and Mrs. Cherry decided to start with a one-time flat fee financial planning relationship with Larson Wealth Management. Before engaging in a long-term relationship, they felt more comfortable testing the waters to make sure they would receive value from the relationship. They desired to partner with an advisor team for the next few decades and did not want to feel rushed into making this decision.

Over the course of the next several weeks, meetings were scheduled to gather additional information, analyze the information, and revise their plan. After each meeting, Dr. and Mrs. Cherry were given “homework” assignments and then reported back to the LWM team between meetings.

A few months later, the Cherrys were presented with a concise six-page document that outlines every major financial decision they should make now and in the next few years. It also included realistic projections and recommendations to help them move closer to their goals. The plan also included concrete recommendations and a checklist of next steps, so the Cherrys would know exactly what needs to be done next.

They soon discovered that the fee they paid for the plan was easily saved through recommendations and strategies uncovered during the planning process. They also enjoyed working with the team and decided to engage in an ongoing relationship.

Shortly after the plan was delivered, Dr. and Mrs. Cherry transferred their investments to the team at Larson Wealth Management to be managed in the agreed-upon portfolio outlined in their plan. They also determined a meeting frequency to ensure their plan stays current and up-to-date. Now, they schedule each meeting three months in advance, occasionally changing it when life circumstances determine the need to do so. After each meeting, their written plan is updated and emailed to them.

The annual fee that the Cherrys now pay to LWM is 0.70% of their invested assets.  This fee covers all financial planning, investment management, and trading costs. They are also automatically deducted from their accounts quarterly. 

This is a hypothetical situation based on real life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.