Millionaire Next Door

Millionaire Next Door

Hardworking, prudent individuals and families who saved diligently while building their business, advancing their careers and raising their families. These successful entrepreneurs, executives, doctors find gratification from experiences such as travel as opposed to luxury items or status items. These individuals know what it takes to achieve their wealth and they want to be just as methodical and prudent with the management of their wealth as they were accumulating their wealth.

CASE STUDY

Matt and Julia

BACKGROUND

Matt and Julia are a couple in their early to mid-60s. They have adult children and grandchildren. Matt
is a successful businessman and has accumulated a large amount of investments as well as a large ranch. 

They clearly understand the value of their money because they have worked hard to accumulate it. They value substance over style and tend to spend their money on experiences and gifting to causes they are passionate about. 

Matt wanted to protect his wealth, maintain his lifestyle and not make an expensive mistake that could impact his independence. Matt also needed to be 100% certain that if something were to happen to him, his wife will be protected and would stay within the guardrails of their financial situation. She is vulnerable because she has limited experience in their financial oversight and doesn’t want anyone to take advantage of her. 

As they reached a time in their life where their focus transitioned from accumulating wealth to begin harvesting what they have built, they had reservations with their broker at the big Wall Street firm. They questioned the motivation and allegiance of the broker, even feeling taken for granted because the broker's focus was on sales and left the day to day management to his staff.

Optima

ACTION PLAN

Investment Management - Recommended appropriate asset selection / allocation to ensure the highest probability of achieving goals; addressed tax mitigation opportunities.
  • Customized investment portfolio for financial independence, account preservation; secondary focus on multigenerational goals.
  • Analyzed existing positions to ensure achievement of goals required by the portfolio and to help mitigate capital gain taxes.
Family Support - Ensured both members of the couple were “in the know” about plans and engaged next generation as appropriate.
  • Met with both Matt and Julia periodically to ensure that she was included in the plans and was comfortable with the Optima team, as well as the investment approach and processes.
  • Action plan to protect Julia’s financial independence if Matt unable to serve in that role.
  • Met with the children to explain our role with the family, the investment approach and processes, and opened accounts for them as appropriate to facilitate estate plans.
  • Provided financial education to Julia and the children.
Wealth Management - Ensured transparency of portfolio decisions, simplified complex web of accounts, addressed insurance and philanthropic giving.
  • Helped consolidate financial affairs; account aggregation to include reporting of external accounts; reduce investment clutter.
  • For accounts requiring frequent transfers, set up electronic links to custodian and to external accounts.
  • Reviewed insurance needs and existing policies to ensure necessary coverage.
  • Developed and implemented annual charitable giving plan.
Professional Support - Coordinated with other trusted advisors.
  • Coordinated with Accountant to ensure maximization of tax efficiencies.
  • Met with their Estate Planning Attorney for overview of estate planning documents, including proper account titling and beneficiaries; identified requirements for future distributions to children.
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