The Art of Wealth Management

Case Study: Circumventing Costly Estate Planning Errors

These stories are hypothetical examples of how Dodds Wealth Management Group could assist clients in various situations. Personal information has been used as a basis for each example, but each has been modified to protect our members’ privacy.

*Please note that the information below is not a client testimonial, but instead is an example intended for general information only, and is not predictive of your individual results. Your results will vary. These are illustrative of the types of clients we serve.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax or legal advice, We suggest you discuss your specific tax or legal issues with a qualified tax advisor or attorney.

Circumventing Costly Estate Planning Errors

Jason and Ann are a couple in their mid-sixties who were seeking, guidance after their financial advisor passed away. They thought their finances were in order and merely wanted someone to oversee their existing investments.

A closer look could reveal some errors in their financial picture that could have been extremely costly.

For starters, Jason and Ann thought they had an estate plan. In reality, they had an empty estate plan because it wasn’t executed – an error that could have cost them millions. There were also several accounts found to be improperly titled so we reviewed their estate documents.

Additionally, their stock portfolio hadn’t been adjusted in years. Its risk profile is appropriate for a couple in their forties, not one nearing retirement. We would discuss creating a lower-risk portfolio with high-quality dividend stocks designed to reduced their portfolio volatility.

Lastly, they weren’t using any of the tax-advantaged strategies available to them, including gifting for their children. So, we would outline some tax-friendly strategies that could potentially save their children millions down the road, and make Jason and Ann feel more comfortable.

Jason and Ann had been living in the dark, unaware of the possible financial dangers ahead of them. But, they now understand the importance of having regular asset reviews by a qualified wealth manager.

With a more suitable portfolio, tax-friendly vehicles, and properly completed legal documents, Jason and Ann could be positioned for a more worry-free, rewarding retirement. They could feel much better knowing their children – and grandchildren – will have the potential for more money and financial preparedness.*

*Please note that the statements above are for general information only, and are not predictive of your individual results. Your results will vary.