Happy New Year; I thought it would be great to use an example of someone I have helped over the years. The following story really touches my heart with a client and fellow rider I met about a year ago. I have changed his name and some of the numbers of the principal to protect our client, but it is a very real client and I see this over and over again.
John came to me about a year ago. After our meeting, I asked him to go home and gather anything that related to his financial situation so we could look at it on our next meeting. At the very minimum, I would help him understand what risk he might be facing: including not earning anything on his money or outliving what he had.
At our next meeting John told me that he had inherited some money, and it was all still in the accounts he had inherited from his family. He was living only on his social security and was barely getting by. When he did need money, he took some from one of the accounts he inherited. He brought stacks of his statements to me that he did not understand, nor did he want to. He was retired and just wanted to be riding his motorcycle or kayaking. John was very young for a 70-year-old and just venturing ou to meet his friends whenever he could afford to.
I looked at John’s accounts that he thought he had about $350,000.00 in and quickly realized he really had about $850,000.00 at the current market value of his investments. Most of his parents’ money had been invested in the stock and bond markets and over the years had grown significantly. He was not aware, as most people are not, how to read and value the information on his statements from the many different firms and banks. The other thing that jumped off the page was the risk he was taking in the type of investments that they were in and like most, the interest accumulating was very little.
Also, he did not have a will, power of attorney, or health care power of attorney. So his family would have had a very difficult time helping him if he needed it or if something happened to him. At the time, we were in a cycle of the markets that would probably create a great loss for him, in the types of accounts he was holding, if there was a downturn in the economy. The other thing the jumped completely off the page was the enormous loss of income this man was losing.
We sat down to discuss his affairs, and I explained in detail what he currently owned and how it worked. He had 10 different accounts. I explained the risk associated with the types of accounts he had, and since he was now retired he needed to consider locking in the gains and securing his principal.
Next, I explained to John that he would have only one account and that account would give him an income of over 5% for the rest of his life and pass directly to his beneficiaries after his death. I also explained how he could also name some of his beloved charities that he wanted to receive monies at the end of his life. Last, I sent him to an attorney to have his will made and a power of attorney drafted in the event he needed it; he was guided on how to make those decisions.
After about a month, I called him back into my office explaining that he no longer had to worry about the markets or money. He would be getting a monthly check and that his principal would be guaranteed. John was so very happy. He had one account and one person to call with questions. He never dreamed that he could get that much income or that he could secure his principal. All of his affairs were now in order and he had a will, a power of attorney, and peace of mind.
My office continues to get phone calls, emails, and little visits from John saying he is enjoying life so much more now. He tells me of trips he can now take to visit his grandchildren, and that when his daughter came to visit he took them all to Disney World. He can go buy the seafood he loves or go out to eat with his friends whenever he wants.
This is what makes everything I do and all 30 + years in this business worthwhile! Thank you John for also giving me the gift of knowing we changed a wonderful person’s life and touched your family in so many ways.
If you have a question you would like to ask me never hesitate to call. No questions will go unanswered; all questions you have are important.
See you next month,
Please reach out to me directly at 727-459-4875
Michelle Osborne is a Registered Representative offering securities through IFS Securities, Member FINRA/MSRB/SIPC. 3414 Peachtree Road NE, Suite 1020, Atlanta, GA 30326. Phone 404-382-5223. Investing involves risks, including possible loss of principal. Please consider the investment objectives, risks, charges and expenses of any security carefully before investing