Three children: all three will begin college within the next four years; one is definitely headed to medical school.
Annual income: $320,000.
Additional asset factors: Stock option plan, profit sharing plan, investment portfolio current value: $425,000.Two homes, appraised values: $500,000 and $250,000.The inventory in his wife’s antique store.
Challenge: Create detailed overview of the couple's financial picture. Plan for ambitious retirement goals. Maximize tax benefits. Establish trusts and estate plans, especially with regard to transfer of assets to heirs. Secure insurance for long-term care and life.
Age 48, recently divorced.
Two teenage children.
Net worth: complicated.
A $1,300,000 house with art and furnishings, a condo, alimony and child support.
Challenge: Appraise homes and furnishings, liquidate where necessary. Invest to prepare for children’s higher education in the event their father does not meet those responsibilities. And invest to cover her desire to return to University, complete her education and become an attorney.
Business owner, medium-sized company, 140 employees.
Age 63, widowed.
Two grown children: both with an active animosity toward one another. Three grandchildren.
Net worth: $9 million.
Challenge: Establish succession plan for business; create trusts for children; preserve assets for grandchildren; help formulate plan for philanthropic legacies.
Age 38, married, one ex-wife.
Three teenage children.
Net worth, pre-Lotto win: $35,000 annual salary; a $95,000 home carrying two mortgages, $22,000 in credit card debt.
Challenge: Preserve assets. Help an unsophisticated individual understand the complexities and dangers of windfall wealth. Set up investment plan to provide for the family, their education, their retirement, the future of their children.
Assets: $6 million.
Annual commitments: Approximately $750,000.
Building capital campaign anticipated assets: $4 million.
Challenge: Preserve assets. Plan for structured growth and expanding responsibilities. Distribute capital funds for new building as required.