Case Studies

Affluent Couple Approaching Retirement

A couple with more than $4 million in investable assets came to us with a portfolio that included holdings in IRAs, 401(k)’s, privately held business, real estate, investment accounts and cash. These holdings, accumulated over long careers, were held in multiple accounts across many investment organizations. Now approaching retirement, they sought to better organize their portfolio, diversify into a more conservative portfolio and add some non-corelating alternative investments, and establish a clear financial plan.

The Situation

Holdings included individual stocks, bonds, ETFs, mutual funds, and Owner-Only 401(k)s
Highly concentrated investment accounts with heavy overlap across multiple investment firms
Significant un-invested cash balance with no short-term needs
Uncoordinated approach with no good way to evaluate investment performance
Little attention paid to tax-efficiency, risk management or diversification
Large concentration of individual equities without any active monitoring
Unable to get a clear picture of their collective net worth
No one was providing investment or planning guidance that captured all the moving parts
Married, with two adult children
Outdated estate plan and no long-term care plan
Wanted to gain a more holistic picture of investment portfolio, broaden exposure to non-correlated assets, and develop a singular, cohesive financial plan

Our Approach

Brought all the different investment accounts into a single portfolio
Determined cash-flow requirements to support monthly lifestyle spending needs
Developed an appropriate asset allocation model including exposure to alternative, credit, fixed income and more international holdings
Improved diversification and risk management
Eliminated highly concentrated equity positions
Invested surplus cash into the new portfolio
Improved tax-efficiency through asset selection and asset location
Delivered a comprehensive online dashboard that provides visibility of portfolio holdings and performance
Helped review current estate planning strategies to take advantage of Federal estate tax exemptions
Evaluated income tax, estate tax, and lifestyle implications of a potential move to another state in the future
Added Home Cyber Protection to their homeowners policy to help mitigate the increasing threat of online fraud
Established communication about a generational transfer plan
Created a comprehensive financial plan that addresses current portfolio investment strategy, considered additional capital contributions, retirement and inheritance and potential estate tax liabilities
Organized a family meeting to share the family goals and values with children

Collaborating with Specialists

Collaborated with accountant
Made introduction to an estate attorney to revise, update and document inheritance plans and established trust and retirement investment vehicles for benefit of children
Coordinated with insurance professional on Umbrella, Property & Casualty requirements
Reviewed long term care options
Connected client with VIP travel consultant to plan a fabulous trip

Noteworthy Results

Portfolio is now operating with improved transparency and improved diversification

Implementation of plan is now enabling proactive management

Children are integrated into the family’s finances and plan for the future

Client’s succession plan is now in place

Get in position for retirement.

This is a case study for illustrative purposes and should not be construed as a recommendation. It may not be representative of your experience. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted. OpenRoad Wealth Advisors does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

Retirees Relocating out of Massachusetts to New Hampshire and Florida

A couple approaching retirement wanted to explore the option of moving to New Hampshire and Florida.

The Situation

Massachusetts residents for the previous 40 years
Strong desire to downsize large home and escape New England winter
Subject to a $400,000 MA estate tax upon both of their deaths
Two adult children living in MA; no grandchildren
One of those adult children lives with a chronic illness and has a shortened expected lifespan
Desire to design their lives to live more fully with intention and joy.

Our Approach

Helped evaluate the pros and cons of moving to New Hampshire & Florida (income tax, estate tax, access to health care, etc.)
Modeled the impact of the move on the financial plan (prepared scenarios on new property expenses, HOA’S vs self-home maintenance, family travel expenses, etc.)
Reviewed Social Security benefits and survivor options
Reduced capital gains taxes by establishing the adjusted cost basis on the MA property
Provided a comprehensive list of recommended steps to change residency to FL
Modeled various retirement age scenarios for him in order to help give them confidence looking forward to their joys of living without the work income they were used to

Collaborating with Specialists

Confirmed the income and estate tax benefits of the move with accountant
Introduced to Realtors in NH and FL to facilitate the sales needed
Connected with a professional organizer to help sort and divest household belongings
Introduced to an estate attorney in NH to re-domicile their documents, retitle accounts and change beneficiaries
Updated auto, home and umbrella policies with insurance agent

Noteworthy Results

Relocated to Atkinson, NH, in a community that supports their active lifestyle

Funded a home purchase in FL

Relocation eliminated the $400,000 MA estate tax and the annual $20,000 MA income tax

Through the client's attorney, amended and restated estate planning documents to satisfy NH law

Maximized Social Security income by deferring both of their benefits until age 70

Saved roughly $5,000 in annual maintenance expenses by deferring annual property maintenance risk to HOA’s

Explore your dreams for your next chapter.

This is a case study for illustrative purposes and should not be construed as a recommendation. It may not be representative of your experience. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted. OpenRoad Wealth Advisors does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

Couple Seeking Second Opinion of Investments

A respected local estate planning attorney referred to us a couple looking for a second opinion on their investment portfolio and verification of their ability to retire confidently.

The Situation

Married couple with 2 adult children
One retired and one still working
Looking for confirmation about financial independence in retirement while maintaining current lifestyle
Non-diversified investment portfolio with too much cash and heavy expense drag on investments with a high percentage of the portfolio in non-income producing annuity products.
No estate plan
Concern for adult son whom they were continuing to support
Significant future state estate tax liability
One member of couple highly risk averse
Admittedly unknowledgeable of investment and how they work

Our Approach

Brought all the different investment accounts into a single portfolio per account type
Determined cash-flow requirements to support monthly lifestyle spending needs
Developed an appropriate asset allocation model
Reduced the expenses on the portfolio by eliminating unnecessary annuities
Invested surplus cash into the new portfolio
Delivered a comprehensive online dashboard that provides visibility of portfolio holdings and performance
Helped establish and fund Spousal Lifetime Access Trusts (SLAT) to take advantage of estate tax exemptions
Added Home Cyber Protection to their homeowner’s policy to help mitigate the increasing threat of online fraud
Established generational transfer plan
Created a comprehensive financial plan that addresses current portfolio investment strategy, retirement and inheritance and potential estate tax liabilities
Organized a family meeting to share the family goals and values with children

Collaborating with Specialists

Coordinated with estate attorney to establish and document inheritance plans and established trust and retirement investment vehicles for benefit of children
Coordinated with insurance professional on Umbrella, Property & Casualty requirements
Reviewed long term care and current health insurance options with provider
Connected client with VIP travel consultant to plan a much-anticipated overseas trip

Noteworthy Results

Portfolio is now operating with improved transparency and improved diversification

Implementation of plan is now enabling proactive management

Children are integrated into the family’s finances and plan for the future

Client’s succession plan is now in place

Get a second opinion.

This is a case study for illustrative purposes and should not be construed as a recommendation. It may not be representative of your experience. This case study does not constitute a recommendation as to the suitability of any investment for any person or persons having circumstances similar to those portrayed, and a financial advisor should be consulted. OpenRoad Wealth Advisors does not provide legal or tax advice. You should consult a legal or tax professional regarding your individual situation.

*Diversification does not assure a profit or protect against loss in declining markets, and diversification cannot guarantee that any objective or goal will be achieved.

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