Emerging Wealth
Emerging Wealth
Younger professionals that are raising families and have reached a point in their career where their income is consistently greater than their living expenses. They are starting to think about goals such as children’s education, retirement, bigger home or second home. These may be children of our existing clients, but they are driven to make it on their own and are not planning on any inheritance.
CASE STUDY
John and Kathy
BACKGROUND
John and Kathy, a couple in their mid-40s, are both professionals, but since John is compensated at such a high level, Kathy has chosen to stay home with the children. Kathy is the daughter of Leo, who has been a client of Optima Asset Management for years. John’s compensation is significantly greater than needed for their living expenses. Not excessive spenders, paying down the mortgage and travel with the children is more important to them.
They have reached a point in their life (compensation and age) where they want to start thinking about their future and want a partner in their financial planning. They wanted to ensure they are smart with their assets and that these assets will meet their goals of education, retirement and a second home. Desired a trusted partner who can allow them to continue to focus on their family and career in order to accumulate the wealth they need in order to fund college and retire.
They are not relying on any inheritance from their parents. They plan to pave their own way and will continue to work hard to do so.
Optima
ACTION PLAN
Investment Management
- Recommended appropriate asset selection / allocation to ensure the highest probability of achieving goals.
- Customized investment portfolio focused on asset accumulation, balancing multiple goals, needs and risk tolerance.
- Current and anticipated corporate assets integrated into the analysis.
Wealth Management
- Ensured transparency of portfolio decisions, and addressed retirement planning, college planning and insurance.
- Helped them identify what is important in their life and prioritize their goals.
- Developed a financial plan to meet the competing goals; incorporated stock options and deferred compensation plans.
- Advised on best vehicle/timing for college saving goals.
- Developed appropriate retirement strategies to address goals and help ensure secure, comfortable retirement.
- Reviewed insurance policies and recommended the implementation of an umbrella policy.
Professional Support
– Introductions to other trusted advisors.
- Discussed need for basic estate planning documents; introduction to potential Estate Planning Attorneys.
- Introduced them to potential CPAs.