Sample Client #1 (Career Transition)
A manager of 20 years is contemplating early retirement and is faced with a decision.
1. Leave his pension inside the company plan and collect a monthly income at age 65, or
2. Withdraw a one-time lump sum of $500,000 from the company plan.
We first prepare use our Naviplan software to run a "transition analysis" to highlight the differences between the two options. Normally, the guaranteed income offered by the pension is hard to part with. However, the client's lower than average life expectancy as a result of a medical condition leads to the decision to withdraw his money from the pension plan in order to provide better protection for his spouse and children.
We then build a cost efficient portfolio that is consistent with his tolerance for risk and will provide him with the required retirement income.
Pension assets are fully taxable upon the death of the second spouse. When preserving an inheritance for the children is important to the client, a life insurance policy can ensure the children are able to replace the funds otherwise paid out of the estate in taxes.
Sample Client #2 (Business Sale)
A couple in their early sixties sells a business they started over thirty years ago for $5 Million. They had hoped to sell the shares of the company to utilize the lifetime capital gains exemption; however the purchaser preferred to buy the company's assets instead of the company's shares.
In this situation, we consult extensively with the tax and estate experts in our in-house Wealth Group. Through these conversations, we develop a plan to minimize the tax owing on the proceeds from the sale of the business. We also structure a cost efficient, customized portfolio to satisfy their retirement income needs. As a final step we work on their estate plan to ensure an efficient wealth transfer to benefit their children and their community through charitable gifting.
Sample Client #3 (Life Event)
A recent divorcee is referred to us by a friend because their spouse was the financial decision maker in the relationship. They are also recieving an inheritance and unsure of the best use of the money. They are initially very tentative and unsure about even basic questions such as their monthly budget/expenses.
We take the time to educate them about financial planning topics and investment options. Since there is no history of investment experience, we start off with a very conservative portfio. Over time, with increased comfort, we gradually shift the investment strategy towards assets with better rate or return potential. The client becomes very engaged in their finances.
Sample Client #4 (Good Savers)
A couple with modest careers has done a great job saving over many years. They are two years from retirement and want to know, "do we have enough?". We spent a lot of time inside our Naviplan Financial Planning software to complete a Retirement Plan. We budget for future expenses such as basic monthly needs, discretionary expenses, vacations, car purchases, home renovations, gifts to kids, etc. We run several scenarios to see what rate of return is required to achieve the goals. We then construct a portfolio with enough risk to meet the required rate of return without being overly aggressive.
Sample Client #5 (Early Starters)
A husband and wife are both professionals. They are busy with careers and family but know it's important to develop a plan to balance competing goals. They are interested in developing a plan to satisfy their longer term goal of retirement and would also like to ensure their shorter term goal of paying off the mortgage and saving for their childrens' education are taken care of. We use our Naviplan software to develop a budget and savings strategy - we make sure to find room for a family vacation each year. During our annual review each year the plan is refreshed to make sure we are still on track with the original goals.