Client Success Stories

Naomi came to us in the middle of her divorce process to have us look over the settlement proposal. Naomi and her ex-husband had accumulated a significant amount of assets, and she knew that she did not understand everything she needed to know to make a smart decision about her money, moving forward. Our team felt it would be beneficial to run scenarios to see how each settlement proposal would affect her life, and determine the asset split that would be optimal for her financial future. In this proposal, we showed Naomi the benefits of receiving more assets that would be tax advantageous, such as bank and non-retirement investment accounts, as compared to tax-sensitive accounts (Traditional IRAs and 401(k)s). We modeled out the projected growth rates of various assets to help determine which ones were worth keeping, as some assets are better at funding future expenses than others. We also wanted Naomi to understand the long-term financial effects the settlement would have for her and her current affluent lifestyle. Once the divorce was finalized and she received her lump sum of $2,100,000, we helped her navigate the separation of assets and oversaw that the asset split was done in accordance with the divorce decree. We worked as an independent set of eyes to track and confirm that all financial aspects of the divorce decree were completed properly. At first, Naomi wanted to continue having her ex-husband manage all her money, which would have left her vulnerable to his controlling impulses, which she was trying to escape. Over time, she was able to take control of her own finances and feel empowered enough to become completely independent of him.

When we met with Jonathan and Patty, they didn’t have a plan for their retirement, which they hoped to take in the next 15-20 years. They had accumulated a large sum of assets but didn’t have a comprehensive strategy to accomplish all their goals and didn’t have an estate plan in place for their family. After reviewing all their assets with them, we discussed their options, and they decided to finance their retirement first. We had advised them that this takes priority over funding their children’s education, as you cannot receive a loan for retirement. They decided they would ultimately sell their Scarsdale home, once their kids were grown, as they did not want to have the pressure of the maintenance the house required as they got older. We helped Jonathan and Patty put a financial plan in place where they could permanently move to their New York City apartment, full-time, and established the magic number of what they could safely withdraw each year upon retirement. Jonathan and Patty’s portfolio also included college education planning for their three children. We designed a personalized savings plan for them through 529 plans, and created a secure future for each of the children’s future career paths. 529 plans allow for tax-free growth if the funds in the account are used for qualified education expenses, such as college tuition. This makes them a more attractive savings vehicle for college and other educational expenses than a traditional bank or investment account. As New York residents, Jonathan and Patty received a state income tax deduction on the amount they contributed to the account, which, as a married couple, was up to $10,000 per year, since they filed jointly. In addition to creating their portfolio, we helped Jonathan and Patty create an estate plan. We discussed our recommendations and then introduced them to a trusted estate-planning attorney, where they were able to thoughtfully create a comprehensive estate plan that is aligned with their values and wishes. With our support, they now have a better understanding of their money, and are on track to meet all their financial goals and retire stress-free!