2409-B Plantation Center Drive
*Ron and Amalia are a power couple in their 50s. Both have climbed the ladder in their prospective careers. Ron is a CEO at a manufacturing company, and Amalia is a partner in a local law firm. Their two children have gone off to college, taking advantage of the college savings plan their parents have put in place. Together, Ron and Amalia have accumulated over $1 million in retirement savings and investments, but now they really need help managing their wealth.
When they talk to our wealth management advisor about their investments, it becomes clear that they’re not sure how to pursue their investment goals. They need help with wealth management.
Once we understood their personal situation, we spent some time conducting a comprehensive analysis of their investment accounts. They have 401(k)s, IRAs, Roth accounts, and brokerage accounts. The sheer complexity of their investment holdings made it difficult for Ron and Amalia to know whether they’re on track with their retirement goals.
Since the recent ups and downs of the stock market, Ron and Amalia are also concerned about losing their investments. Wealth preservation is at the top of their goal list, along with wealth planning. Given their busy careers, they also don’t have time to actively manage their many portfolios. Instead, they would like to work with our wealth managers to ensure their assets are performing optimally.
We used Ron and Amalia’s financial goals to create a wealth management strategy that will work for them.
Wealth management is personal to everyone. There’s no one correct approach to managing your wealth because it all depends on your goals and objectives. Ron and Amalia feel they have a lower risk tolerance now that they’ve built up significant wealth and can see their retirement on the horizon. It’s our job to help them choose investments that still provide meaningful returns while safeguarding the capital they have accumulated.
Another concern Ron and Amalia have is the effect their investments have on their taxes. As empty nesters, they don’t get to take advantage of dependent deductions or credits, and some of their investments have significantly appreciated in value.
Our wealth planning strategy considers the impact your investment decisions have on your taxes.
Through wealth planning, we can help Ron and Amalia reduce their tax burden and maximize their net earnings. We took advantage of asset conversions and tax-loss harvesting rules to minimize costly capital gains taxes. Our wealth managers also planned for them to contribute most of their savings to their tax-deferred retirement accounts. We also helped them plan for tax-free income during retirement by optimizing their Roth account holdings.
Ron’s 401(k) includes a high percentage of employer stock, which we determined is too risky given Ron and Amalia’s comfort with risk. We created a new investment strategy and replaced a significant portion of those stocks with a range of diversified investments. We made sure to spread it across various companies and industries to keep the portfolio well balanced.
Being too heavily invested in one company or industry may not fit your risk tolerance level. Our wealth managers can analyze your portfolio and optimize your investments to better fit your goals.
Wealth planning isn’t just about balancing your portfolio. We also monitor the performance of your investments over time and buy and sell assets according to your wealth management plan. For Ron and Amalia, this included selling underperforming assets and rebalancing the portfolio when a group of assets appreciated significantly. We want to make sure that their portfolio stays within their risk tolerance limit. We also choose investments that are in line with their objectives and timelines.
Investment portfolios are fluid, and they require active management. Our wealth managers are here to take care of those investments for you, helping you preserve and grow your wealth. We create a wealth management plan that prioritizes your objectives and timelines to help you pursue the financial goals that are important to you. Working with a wealth manager allows you to concentrate on work, life, and family, knowing that a professional takes care of your financial future.
Wealth management can help you reach your financial objectives without your active involvement, saving you time and stress.
*The is a hypothetical example of how Fairway Financial interacts with the community.This is a fictitious creation by the author to demonstrate our services. None of the names or images belong to actual clients, accounts or relationships.