Our client and friend passed away last Saturday, at the too young age of 61.
She had entrusted us to be good stewards with her assets, and this, as a final accounting, will prove that we were.
On August 25, 2011, our client transferred about $94,000 from another firm to us, based on our recommendation. Had she stayed where she was, over the past year, her funds would have decreased by $4,247.93.
We were able to provide much better performance, and were pleased to report an increase during the same time, of $5,527.20.
That difference itself was $9,775. In just one year.
In the event of death, any mutual fund with a deferred sales charge, will be paid out net of that charge. Segregated funds, on the other hand, and in a much better fashion, will waive any deferred sales charge outstanding at death.
Therefore, the savings here were $5,489.
Our client had taken the advice of her previous advisor to make the beneficiary of her funds "ESTATE". We questioned that. Accordingly, our new client appointed individuals as beneficiary of her funds.
Therefore, these funds will not have to pass through probate, and will avoid the application of any estate administration tax, or fee. This is an additional saving of approximately $4,850.
With our Retirement Blueprint™ process, we determine all of the client assets, and analyze the distribution of those, either by way of retirement income, if living or lump sum, in the event of death.
We found out that the pension that was being received from our client’s previous employment was guaranteed to be paid for at least 120 months. We asked who
the beneficiary of this pension was. It turned out to be that the beneficiary was a family member that had been deceased for a few years. Our client had forgotten to make the change after her relative's death, and her previous advisor had never bothered to review or to ask about that.
Therefore, we were able to get the proper beneficiaries appointed within a few days of discovering this problem. Based on the 48 months of remaining payout, the probate and estate administration tax and fee associated with the redistribution of this fund nets a savings of about $5,280.
The exact same circumstance arose when we investigated the beneficiary appointment under the group life insurance provided to retirees. Again, the
beneficiary was a family member, subsequently deceased. By naming new beneficiaries, within a few days of discovering this problem, the probate and administration tax and fee associated with the redistribution of this fund nets a savings of about $2,450.
It was just a year that we were able to provide service to our former client.
However, we were able to prove our worth as income and personal asset managers.
By the completion of just three forms, by getting her signature just three times, having agreed with our advice, the net benefit of so doing is about $27,800.
Had our client not investigated our Retirement Blueprint™ process, to take advantage of the guarantees of segregated funds and the unique processes associated our program, her net worth would have been reduced by over $27,800, through no fault of her own.
While we are saddened that her life ended so early, we are grateful to have had such a dramatic impact on the preservation of her wealth.