We publish the Financial Tales Blog and the Financial Tales Book as educational tools. Our hope is that through storytelling, you can identify with those that have similar situations and develop a plan that you can implement. Follow us as we introduce you to “our clients.”
Marlon is 22 years old, graduated from a prestigious college and as a single man is trying to make it in the entertainment business. He lives in Los Angeles and works as an assistant for a top talent agency. He knows he has to save money and invest it wisely but wants to devote the least amount of time possible to the endeavor. He knows his top priority is his career and that all his energies must go in that direction. What should Marlon do?
Molly is 29 years old, graduated from college several years ago and has managed to save a year’s worth of her salary. She is thinking about buying a house but isn’t quite sure how it will all work out. She never gave money much though other than to save it and she has it all in a checking account. She realizes that she is working for her money but that her money isn’t working for her, and wants to do something intelligent with it. She has no idea what that could be and doesn’t want to devote too much time to developing competency because her job is very demanding with constant travel and her career is more important than her portfolio returns at this time in her life. What should Molly do?
Miguel and Maria are both 45 years old and have been married for 24 years. Marta’s family founded a successful South American construction company and they purchased a condominium in Washington DC for their college sophomore daughter. They are unfamiliar with the tax rules that govern foreign nationals that own US based assets. What should Miguel and Maria Do?
Matt and his partner Mia sold their health care company for enough money where if they choose, they never have to work again. They are both in their late 40s or early 50’s and have spent the better part of the last 20 years focused on growing their business. They find themselves liquid for the first time in their lives since their capital investment was their business. They are seasoned and successful entrepreneurs, but not successful investment managers. What should Matt and his Mia do?
Max is 30 years old. He is a physician and the plan is eventually he will take over the family practice. While in college, he studied both economics and biology because he wasn’t sure where his career would take him. His studies created a passion for the capital markets and Max is extremely knowledgeable. He has strong opinions and would like to manage his own investments yet doesn’t have the time due to his profession. What should Max do?
Mel is a 34-year-old self-employed sales professional. His travels take him up and down the East Coast, which leaves him very little time for analyzing the capital markets or learning about the latest and greatest tax reduction opportunity or benefit plan. Nevertheless, he realizes he can’t just sell, sell, sell and save, save, save. He has to create and fund his own retirement plan, design his benefit package, manage his taxes and he wants to do it as efficiently as possible. What should Mel do?
Melanie is Mel’s twin sister. Melanie is also a 34-year-old self-employed sales professional. Unlike her brother, Melanie sells real estate and has an affinity for real estate investing. Like her brother, Melanie’s job leaves her very little time for analyzing the capital markets or learning about the latest and greatest tax reduction opportunity or benefit plan. Nevertheless, she also realizes she can’t just sell, sell, sell and save, save, save. She has to create and fund her own retirement plan, design her benefit package, manage her taxes and she wants to do it as efficiently as possible. She also wants to include a substantial real estate component into her investments. What should Melanie do?
Miles and Monica are the proud parents of Mel and Melanie. Miles made his fortune as a real estate developer, loves what he does, and plans to work indefinitely. He delights in his profession, takes pride in the company and employees that surround him and secretly wants Mel and Melanie to one day join his company. Monica has been the foundation that made everything possible. When Miles started his company, she is the one that kept them afloat with her job. She is now retired and is actively involved in managing the family finances and local philanthropy. What should Miles and Monica do?
Milo is a 70-year-old artist and recent widower in charge of the family finances and portfolio for the first time ever. His wife Miranda recently passed away and as a CPA/Attorney had always handled that aspect of their life. Milo finds himself in a similar problem situation as his daughter Mariah, when at the age of 40 divorced her husband and he too had always handled the family finances. What should Milo and Mariah do?
Marco and Madeline are both 28 years old, both employed at fortune 500 companies and just had their first child, Mario. They are determining the best way to juggle career, personal finances and college planning. What should Marco and Madeline do?
Marty and Mary are not in an enviable position. They are rapidly approaching 60 and they know they haven’t saved enough for their retirement. They have raised a large family and for what seems like the first time in decades, they can start to set some money aside. What should Marty and Mary do?
Malik is 67-years-old, owns his home and has a seven figure balance in his company-sponsored 401k plan. He is contemplating retirement but doesn’t know if he has enough money to pay for the lifestyle he envisions. What should Malik do?
Madison and Megan are best friends and have worked for the same company for over 20 years. They have both been consistent savers and both been very aggressive with their allocation to stocks in both their personal portfolios as well as their retirement plans at work. They both have more than enough money to retire but they are wondering if they should reduce their exposure to the stock market. Neither plans to retire anytime soon but if they did, it would be temporary because they enjoy their profession and would want to continue working elsewhere. What should Madison and Megan do?
Maurice and Marshall run successful small businesses. One runs a landscaping company he founded right out of high school and the other a construction company he grew after working with his father. Their idea of success is a good salary and then plow everything they make back into the business in order to grow it. So far, this has been a good strategy. They both realize that the bigger they get the harder they fall and they are considering some form of diversification or business protection insurance but they are not sure what to do. Both businesses if sold at their present value would bring in sufficient money that neither would ever have to work again if they chose not to. Unfortunately, their businesses are worth a disproportionate amount of their net worth. What should Maurice and Marshall do?
Margaret and Mallory are mother and daughter that live together. Margaret’s husband Martin passed away several years ago and Margaret is well versed in managing the family finances and caring for Mallory. Her major concern is with Mallory and her special needs. She worries about what will happen to Mallory when she is no longer able to take care of her. She wants Mallory to stay in a familiar surrounding but recognizes that she can’t manage her day-to-day activities including the management of her investments or the paying of bills. She is contemplating setting up a special needs trust and is interviewing potential fiduciaries. What should Margaret do?
Micah and Marissa have been married for over 55 years and are both over 80 years old. They have four children and nine grandchildren. Money doesn’t mean as much to them as it once did since they have more than they could possible spend and as they have aged, their expenditures have greatly diminished since they no longer travel or entertain as they once did. Their greatest pleasure is helping others and the focus of their attention is their children and grandchildren. What should Micah and Marissa do?
Michael was a very successful executive and he and his wife Mara have an estate tax problem. Their estate is such that the money they have accumulated in their retirement plans becomes a toxic asset. Upon their death, the expected tax on the money will be well over 80% and they are looking for ways to reduce this tax bill so that they can pass more of what they made to their children. What should Michael and Mara do?
Mariano and Mateo were siblings that left an eight-figure amount to their favorite endowment. Their hope was that the endowment would preserve their legacy and vision for the future. They were sure to appoint a professional board while they lived and were active in the daily management of the fund’s expenses. They are both gone now and the board remains. What should the board do?