This is a hypothetical example for illustration purposes only. Actual investor results will vary.
Types of Clients
Situation: A couple would like to retire in 2 years. They have a pension with his current employer, a 401(k), a rental property and a number of IRA's and old 401(k) accounts still held by previous employers. They don't know if they will have enough cash flow to maintain their standard of living in retirement.
Suggestion: Consolidate their various retirement accounts. Develop a comprehensive plan that provides them with a clear understanding of their retirement income needs and a sustainable method for achieving them. Consult with their attorney to update their estate plan.
Situation: A small business owner would like to set aside more pre-tax savings for her retirement. She is happy to help her employees as much as she can, but has a limited budget.
Suggestion: Help her with the design and implementation of a Safe Harbor 401(k) with Profit Sharing that will allow her to maximize her individual contributions while at the same time give her the flexibility to adjust her employer contributions as business conditions dictate.
Situation: A young man's parents have passed away and he inherited his father's IRA. His is concerned about taxes and the suitability of the investments his father holds in the IRA.
Suggestion: Roll the father's IRA assets into a Beneficiary IRA that will minimize the son's current and future taxes and design an investment allocation that is tailored to the son's longer-term goals.
Situation: A brother and sister's elderly father is no longer able to care for himself and requires assisted living. They are concerned that he may not have the income to support his needs. He has significant assets that also include real estate holdings. His assets are scattered among many accounts and different types of investments.
Suggestion: Refer them to capable professionals--estate attorney, CPA, real estate agent--who can help them understand their father's circumstances and take appropriate actions. Our input would be to consolidate his assets and build a diversified, prudently balanced portfolio to provide for his monthly cash flow needs.
Situation: A husband has asked his wife, our client, for a divorce. They have been married for 20+ years and he has suggested they just use his attorney in order to speed things up as well as save both of them a lot of fees. He has offered her 50% of everything they have. Her best friend suggested she visit with Bass Investment Group before making any decisions.
Suggestion: We urge her to visit a different family practice attorney who will share with her the minuses of using one attorney as well as the pluses. He will help her realize the various steps that will need to be taken to protect her rights. Our assistance would include analyzing and identifying an appropriate and "equitable" division of assets and realistic cash flow expectations in future years. We would explain that our projections will indicate if a 50% division of assets may or may not be the most prudent or equitable solution.
Situation:A woman's husband who handled most of the family's financial decision making over the years has passed away unexpectedly. Suddenly she is confronted with a significant reduction in income and a host of issues with which she has little experience.
Suggestion: Help her track down all of her husband's assets: life insurance policies, pension plans, bank and brokerage accounts. Co-ordinate with her estate attorney and tax advisor to decide the prudent strategy to move them into her name with minimum tax liability. Develop a plan to use these assets to generate enough cash flow to replace the lost income.
*There is no assurance that any investment strategy will be successful. Investing involves risk and investors may incur a profit or a loss. Asset allocation and diversification do not ensure a profit or protect against a loss. Past performance is not indicative of future results.