Accumulation

Clients in the accumulation chapter of life primarily seek our services for two reasons:

• Fear and anxiety of being behind in savings and investing, and they want to get financially prepared for the future
• Their assets have grown in size and complexity, and now they must get more advanced professional financial advice

The accumulation chapter of life may be filled with lower incomes, savings, and investing amounts, but it is full of important life decisions. More financial, professional, and personal decisions will be made in this chapter than in any other. Establishing a relationship with a trusted advisor will pay dividends well into the future as you grow financially and emotionally in the life and career you’ve always imagined.

Veronica & Tony

Veronica, 41, and Tony, 38, have been married since their college days. Veronica is an ambitious professional on the partner track at a Big Four Accounting Firm, actively engaged in her community through the Junior League and local philanthropic efforts. Tony, a dedicated dentist, owns his own practice and is deeply involved in their neighborhood church men's group. Together, they are raising two children who attend private school, and they own their home.

As they enter a new phase in life, Veronica and Tony have several long-term financial goals: purchasing a second vacation home or investment property, maximizing their existing investments, and paying off Tony's dental school loans. In the short term, they need guidance on how to wisely use a $250,000 gift from Tony’s grandmother. Despite having a budget, they admit they struggle to follow it consistently, leading them to seek professional financial planning.

Needs:

• Budget tools and tips to optimize spending and saving.

• Life insurance needs analysis and education.
• Student loan review and options for repayment.
• Advice on 401(k) investments and contribution amounts.
• Options for utilizing the $250,000 gift.

Solution: Planning, Advice, Asset Management (PAAM)

• Psychometric Risk Assessment and Financial Therapy: To better understand their financial behaviors and underlying money scripts, we conducted a psychometric risk assessment. Through financial therapy sessions, we explored their spending and saving patterns, helping them to align their financial decisions with their long-term objectives.

• Financial Plan with Budgeting Tools: We provided Veronica and Tony with a comprehensive financial plan that included tailored budgeting tools to help them optimize their spending and saving habits. These tools were designed to make it easier for them to adhere to their budget, allowing them to allocate resources more effectively toward their goals.
• Ongoing Meetings for Financial Planning: We scheduled regular meetings with Veronica and Tony to discuss life insurance options, manage their assets, explore student loan payoff strategies, and determine the best investment options for the $250,000 gift. These meetings provided continuous support as they navigated complex financial decisions.
• Annual Reviews: Each year, we review their financial plan and progress toward their goals. We analyze their investment allocation, performance, and make necessary adjustments. We also evaluate their spending, savings, and investment strategies to ensure they remain on track to achieve their long-term aspirations.
• Referrals to Experts: Recognizing the need for specialized advice, we referred Veronica and Tony to a CPA for detailed accounting assistance and to an estate planner to discuss wills and power of attorney (POA) options. These referrals ensured they received the best possible guidance in all aspects of their financial life.

Veronica and Tony's story exemplifies the challenges and opportunities faced by clients in the Accumulation Stage of life. This phase is marked by the complexity of managing growing assets while navigating critical life decisions such as career choices, family planning, and where to live and raise children. Clients like Veronica and Tony often seek our services because they feel a mix of anxiety about not being fully prepared for the future and the need to manage the complexities of their expanding financial lives.

A key aspect of our approach is developing effective communication strategies, which is often the number one challenge our clients face. Veronica and Tony, like many couples, may struggle to communicate about financial decisions due to differing values and beliefs. Whether it’s deciding how to allocate funds toward a child’s education, paying off debt, or purchasing a second home, clear communication is essential. We provide the tools and guidance to help them listen to and understand each other, ensuring their decisions align with their shared goals.

By establishing a relationship with a trusted advisor, Veronica and Tony are not just preparing for the future—they are laying the groundwork for a financially secure and emotionally fulfilling life.