Case Study 1: Integrated Planning Delivers Financial Well Being
Carla was referred to Old Dominion Capital Management, Inc. by one of our clients. At the time, her husband was quite ill, and she felt anxious and uncertain about her financial situation. Our team immediately arranged for Carla and her son to meet with an attorney to assure that assets were correctly titled, beneficiaries were up to date, and a will was properly constructed. Thankfully, we were able to help get the documentation in order before Carla's husband died.
At the time, the family had many different investment assets, including company retirement plans, an employee stock purchase plan, joint tenant accounts, five life insurance policies, and individual taxable accounts. Their investment assets were scattered amongst various financial institutions. Although none of the investments were unreasonable in themselves, it was very difficult to get an overall view of her financial situation and even harder to keep track of all the statements and tax information. As a result, the investments were not well diversified, and there was no unified investment strategy.
The first concern was to ensure Carla had adequate cash available to meet her immediate needs. Our team helped her convert the existing joint checking account and several other joint accounts into her own name. Next, we helped her file for life insurance benefits on five different policies. We helped consolidate her accounts, and then worked with her to determine her personal investment goals. We agreed on an income figure and arranged for automatic monthly electronic transfer of that amount to her checking account. Our team then suggested a strategy to immediately begin diversifying the investments and to complete that process over a specified time period. We collaborated on an asset allocation and a long-term investment strategy that took into account her income needs, risk tolerance, desire for reasonable long-term return, and the tax implications of these issues.
When the process was complete, Carla was set up to receive consolidated account statements and tax documents from a single source, and she could now get answers and solutions to questions through her personal account advisor at our office. Her initial anxiety about her financial situation and the work she would have to do to keep up with all of it began to disappear. Regular discussions with her advisor led her to a greater understanding of her financial situation and confidence in the long-term investment approach. Her sense of financial well being increased to the point where she now enjoys being able to help her children with some of their financial needs, knowing that she is financially secure.