Here at Northwest, each new client often brings a unique financial situation, but that doesn’t mean we have to re-create the wheel each time. Given the broad experience of our Wealth and Portfolio Managers (and over 17 years in business), we have dealt with a wide range of financial issues. We want to share the stories of some of these clients and how we helped them simplify and get their financial house in order.
For confidentiality purposes, let’s call these clients the Smiths. You may find some or all of these issues familiar. If so, we encourage you to contact one of our Wealth Managers for a review of your portfolio and financial situation.
The Smiths had accounts at too many custodians. They came to us with six accounts spread amongst mutual fund companies and brokers. We helped them consolidate IRA accounts and taxable accounts to simplify their holdings. We helped them with the allocation of a couple 529 plans for their children and conducted a comprehensive financial assessment to cover college expenses and plan for their retirement.
The first chart to the right displays their original allocation at the time the Smiths became clients. While cash can be a beneficial or important holding, we concluded they had too much given their substantial liquidity and long-term investment horizon. We considered all their financial positions, even some we don’t yet manage in their 401(k)s.
The second chart below right displays the allocation of the assets we currently manage for them. Overall, we have increased their diversification, put their cash to work for them, and increased their fixed income investments to increase the stability of their portfolio and generate income.
On the estate planning side, we reviewed all of their estate planning documents, recommending they explore some changes with an attorney. We also electronically secured and stored the documents in one place should anything happen to the Smiths. Additionally, we referred them to an insurance specialist to explore long-term care insurance.
The work doesn’t stop there. In addition to managing a large portion of their overall investments in individual stocks and bonds, we meet with them a few times a year to make sure we are still on track to meet their goals.