At the age of 50, Janet lost her husband to a heart attack and inherited the family business, along with her mother-in-law Pat. Janet had been taking care of three children, now ages 16 through 20, and had not worked outside of her home since before they were born. Neither Janet nor Pat had worked at the family business in the past.
Janet quickly found out that her husband had bought luxury items before he died, and charged the debt to the business. His insurance policy was used to repay the debt, leaving Janet with no insurance payout and leaving her concerned about her financial future.
Janet contacted us for advice.
We started by asking Janet to answer the Three Essential Questions: If I live a long life, will I be able to continue living in the lifestyle I’ve become accustomed to? If I had died last night, would my assets go to whom I want with tax efficiency? If I become disabled, how do I want to be cared for and can I afford this level of care?
Janet was not sure about the answer to any of these questions.
The first thing we worked on together was her budget and helping her understand her assets, her liabilities, and her goals. We then worked with the president of the business, her accountant, and her attorney, in order to provide the most efficient financial plan so Janet was able to keep her home and care for her children.
We helped Janet understand what she owned, how much debt she carried, and what was good debt and what debt needed to be cleared.We then organized her files and created an electronic system for her to easily access all of her records and documents. We also invested her money and worked with the business to create a job so that Janet could maintain her desired lifestyle. Lastly we determined how much insurance she needed, and then we helped her obtain it and made sure it was organized properly.
Our goal was to make Janet’s goals achievable and set her on that path. We are happy to say Janet is now confident she can answer the Three Essential Questions.
This material is being provided for general information purposes only and should not be construed as investment, tax, or legal advice, or as a solicitation to buy or sell any specific securities product, or used as the primary determinant of the best strategy. Although these are actual events, not all clients will experience the same result and there is no guarantee of future performance or success.