• 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 $4,000,000 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. Living below their means is simply a way of life.

    Retirement is right around the corner. The Cherrys know they would like to partner with an advisory team 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 subpar 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. Here are some questions 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    • How should our retirement funds be withdrawn?
    • What is our optimal level of risk given our long life expectancies and the amount of money that we need to live?
    • 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 complimentary first meeting, the Cherrys asked thoughtful questions of the team at LWM. The team gave them several good ideas and answered 100% of their questions clearly and concisely. After assessing the complexity of their planning, they were quoted a flat fee of $4,800 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. 

    It was also a high priority for the Cherrys to know their advisors shared similar values. 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 reported back to the LWM team between meetings.

    A few months later, the Cherrys were presented with a concise six-page document that outlined 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 next steps, so the Cherrys knew exactly what needed 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. Periodically, they request that their written plan is emailed to them.

    The advisory fee of 0.60% annually covers all of the financial planning and investment services that the LWM team is providing. All of these fees are deducted from their accounts quarterly. 

    When they compared their “all-in” fees with LWM to their prior advisor, they were pleasantly surprised to learn that those fees were actually slightly less with LWM at the helm because the previous advisor failed to reduce fees over the years as industry-wide fees were reduced.
     

    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. 

  • Dr. T. - Young business owner balancing family life, investing in the business, and saving for retirement.

    Dr. T. has a thriving medical practice and the responsibilities as a new dad often leave him feeling a bit stressed.

    He is a young successful business owner who is new to the Shenandoah Valley. He has been blessed with a new child Abigail, a loving wife Marie, and a good business. His family’s future is so promising.

    But with the thriving business came sizeable debt. His valuable education came with significant student loans. His beautiful new home comes with a mortgage and a hefty monthly payment to the bank. When you add it all up, he has well over $2,000,000 in loans that must be paid back one day.

    As he is juggling all of his affairs, he often wonders, “Am I missing something?”

    Time is very precious to our young doctor. He needs to know that he’s using his time effectively. The decisions ahead of him are complicated and he needs to know he is making the very best financial decisions for his family.

    At this stage in his life, he does not have a lot of money to invest, and most of what he does have is tied up in his business or his retirement accounts at work.

    A few of the questions he is asking himself are:

    • How do I manage my debt properly?
    • How do I find the right balance between investing in my business and saving for retirement?
    • How can I ensure that we are on track to fund Abigail’s college education?
    • When uncertainty arises, or when opportunities come up, who can I call on short notice and get solid answers?

     

    He did not need a “product” or a “portfolio.” He simply wanted advice.

    After the initial meeting with Larson Wealth Management, Dr. T. decided that a flat fee subscription planning engagement was best for him. He felt that he needed to know where he stands financially, and where to focus his energy next. After asking some questions to understand the complexity of his planning, the team at LWM quoted him a flat fee of $6,000 annually. Half of this fee was paid when he signed the engagement letter, with the rest paid as monthly installments after 6 months.

    Over the course of four meetings, he met with the Larson Wealth Management team to create his written financial plan. Together, they prioritized and organized his entire financial life on paper and on his personal secure financial website.

    His written financial plan summarizes all of the major decisions that he has to make now and that he will need to make in the coming years. It also includes a checklist of action items, so that he knows exactly what needs to be done and exactly how to do them.

    His meetings with the team at LWM are always scheduled far in advance and they always have a clear agenda set in advance. He knows he can call his advisors anytime when opportunities or challenges arise. His personal financial website contains every aspect of his financial life, and both he and the LWM team can access it at any time.

    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. 

  • 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.

    Daisy is 71 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 is 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 wants to know she invested wisely and 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 know further consolidation will allow her to more easily track her investments and reduce stress.
    • To take her required minimum distributions (RMDs) the right way. She knows she needs to take them soon, while managing 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 worked closely with 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 he was excited about a new product that he thought she should invest in. Sometimes, she was more confused leaving his office. She often 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. They quickly realized that 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 $900,000 of her invested assets, leaving the remainder of them in insured deposits at her local bank for now. She elected to have her financial planning and asset management fees totaling 1.05% deducted from her accounts so that she does not have to worry about writing checks or affecting cash flow. She feels the fees are very reasonable for the services provided and is 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 questions have been addressed. Her “all-in” fees have actually come down, even with the higher level of service.

    She meets with the team once or twice per year, depending on her travel schedule and her needs. During the meetings, she reviews her allocation, manages the distributions from her accounts, and discusses 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 is grateful to know 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 the LWM 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.

    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. 

  • Fred and Betty - Preparing for retirement and beyond in the final years of their careers

    Fred and Betty are happily married and have lived in the Shenandoah Valley all of their lives. Fred began his career at the local pharmaceutical company over 35 years ago, starting out as an hourly employee and working his way up to management. Betty stayed at home while her children were little, and as her children got older, she went back to work in the school system, working part-time.

     

    Now they’re only a few years away from retirement, and between Fred’s 401(k) balance and his pension plan, they have more financial resources than they ever expected. They feel extremely fortunate to be in the position that they are in. Fred also wants to make sure that he transitions well into retirement…and that he is able to stay retired. Some of Fred’s friends retired just before the financial crisis in 2008, and after some poor choices they found themselves back in the workforce.

     

    The thought of life without a paycheck is somewhat concerning to them, even though they know that they have enough assets to carry them through their retirement years.. 

     

    Their main questions are:

     

    • How can we make the best use of Fred’s pension? Should we take a lump sum or a lifetime income annuity?
    • How should we handle our healthcare expenses in retirement? Should we take advantage of the company retiree insurance or explore other options?
    • How should we think about Social Security? Should we take it early and accept a reduced benefit, or should we wait with the hopes of getting a higher benefit later?
    • How aggressively should we invest? We have longevity in our family, and we want to make sure that our assets will carry us for the rest of our lives.
    • How can I minimize taxes in retirement?
    • How can we best pass our wealth down to our kids and grandchildren?

     

    They also desire to know exactly how much they are paying their financial advisory team, so that they are certain that they are receiving value for the fee. 

     

    Fred and Betty began their conversations with the team at Larson Wealth Management three years before they hoped to retire. 

     

    Over the course of four meetings, we gathered more information and finalized their written plan. Now they have complete clarity and a game plan for drawing the pension, timing, their Social Security benefits, and clear action items so that they know what to do to save taxes now and into retirement. The team at Larson Wealth created a concise written financial plan and took the time to explain the answers to the most important questions. Fred and Betty were initially surprised to hear that the annual planning fee would cost $5,000, but then quickly felt better abou the fee once they understood the value they would receive.

     

    After the initial plan was created, we set a regular meeting schedule to make sure that they stay on track as they get closer to the retirement date. As questions came up in between the meetings, they emailed their questions over to the team and typically received a response within 24 hours. 

     

    As their retirement date finally came near, the pharmaceutical company offered Fred a “package” for early retirement. Fred and Betty decided to take the “package” because they already knew all of their most important numbers; they had been talking through their strategy over the last few years with the team at Larson Wealth Management. 

     

    They rolled Fred’s 401(k) to the team and are now paying all of their financial planning and investment management fees directly from their investments so that they do not need to write a check for the advice they’re receiving. Their annual asset-based fee is 0.85%.

     

    At retirement, the team helped Fred and Betty refine their budget and determine a withdrawal strategy that will allow them to manage the ups and downs of the market while also minimizing the taxes they pay in retirement. 

     

    As they move through their retirement and then begin to draw Social Security, they are now in a position to start a gifting strategy to their children and grandkids. 

     

    Fred and Betty are grateful that they made the decision to partner up with the team at Larson Wealth Management and feel ready for what comes up next.

     

     

    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.