Sudden Life Event

Implementation & Monitoring

Given the recent loss of Megan’s father, we first walk through the expectations and tax implications surrounding her inherited accounts, covering questions along the way.  We then discuss how to incorporate these into their holistic long-term financial plan.  While collaborating on their financial plan we also:

• Talk through savings opportunities beyond maxing their pre-tax 401ks. Their company offers two other options, an HSA and Deferred Compensation plan, that they were not currently using and investing in for tax savings and long-term investment growth. They also have a Mega-backdoor Roth savings option in their 401k they want to explore.
• Help to develop a customized and coordinated asset allocation for their portfolio assets so their risk levels are aligned with their current circumstances and future goals.
• Discuss tax-efficient ways to reduce the concentration risk in their individual stock positions.
• Annually evaluate tax opportunities. This could result in meaningful lifetime tax savings.
• Incorporate the required withdrawals from Megan’s inherited accounts and reallocate to a brokerage account for investment toward future goals and retirement.
• Encourage them to explore “What If” scenarios in terms of early retirement, part time work or a career change. We can then present and review these scenarios side by side to offer an objective view of the financial impact of each option.

Working with an advisor can provide them peace of mind in knowing when they can retire, how much they can spend annually, and having an objective third party to regularly review their financial situation.