A divorcee in her 50s with assets totaling $2.6 million was recently referred to us by her CPA. Based on her tax returns, the CPA felt her client may not be invested correctly due to the high taxes she was paying in capital gains and interest from her investments. It was also evident to the CPA that her client was not receiving adequate service from her existing ‘advisor’ as her phone calls and email were infrequently returned and her questions seldom adequately answered.
Within a couple of meetings and a much greater understanding of her personal situation, we learned that her ex husband had been the one ‘in charge’ of their investments and after their divorced she simply continue working with their previous ‘advisor.’
As part of our discovery process, we conducted a GAP Analysis on her portfolio, a service we provide all of our clients, and found not only a highly tax inefficient portfolio, but also a highly aggressive portfolio, and fees as high as 10% on one account.
We were able to consolidate her accounts where applicable, designed a more appropriate, tax efficient, diversified portfolio to meet her not her ex husband’s goals and risk tolerance, while greatly reducing her fees.
We continue to keep her informed and updated on how she’s invested and why, along with helping her with all of her planning needs. Her knew found Clarity and growing knowledge of her finances have provided her the confidence to know that now she’s ‘in charge’ of her finances.
