Client Situation: Middle-aged couple with grown kids, and both spouses recently retired from the IT industry. The couple is very passionate about Socially Responsible Investing (SRI) and both are highly active in their respective charities; they give of their time, expertise, and money.
Investable Assets: $2.5 million – mostly retirement assets, but also some taxable with several large positions in low-basis tech stocks.
Beacon Pointe Value Add:
We understand that every client has their own unique financial circumstances. Our goals in this case were:
- Helped clients understand the investing space – SRI/ESG/Sustainable/Impact
- Portfolio Management & Planning
- Illustrated historical performance that competes with market returns while reflecting client values
- Reviewed a sample Social Investment Policy Statement which we helped the client develop
- Discussed and demonstrated how Beacon Pointe uses state-of-the-art technology in our planning process, implementing a dynamic online financial planning dashboard, etc.
- Beacon Pointe’s Manager Research Department has a dedicated focus on SRI and Impact Investing strategies, with emphasis on both inclusion (environment, social, governance) and traditional exclusion
- Beacon Pointe has over 20+ years of SRI/ESG experience
- Have the portfolio reflect their personal values
- Have the portfolio reflect their planning goals
- Hold the client accountable to an annual budget via the use of Beacon Pointe’s financial planning dashboard/portal
- Offer the client opportunities for further education in the SRI space
Beacon Pointe Action Items:
- Complete portfolio review using their Social Investment Policy Statement as a guideline
- Used several private placements in the Impact Investing space
- Execute an exit strategy for taxable positions over time
- Coordinate with CPA on tax planning
- Initiate a DAF as well as 529 Plans for grandchildren
- Work with the next generation on their planning and investing small amounts of money while facilitating a personal relationship with the next generation of the family’s investors
- Follow up on the personal referral to the client’s brother
- Invited them to our quarterly client education seminar series which they can attend in person or remotely
Important Disclaimer: Case studies presented are hypothetical scenarios and intended for illustrative purposes only. They do not represent an actual client or an actual client’s experience but rather are meant to provide an example of Beacon Pointe’s process and methodology. An individual’s experience may vary based on his or her circumstances. There can be no assurance that the Firm will be able to achieve similar results in comparable situations. No portion of this case study is to be interpreted as a testimonial or endorsement of the Firm’s investment advisory services, and there is no way for Beacon Pointe to ascertain whether the hypothetical client would have been satisfied with their results. The information contained herein should not be construed as personal investment advice.
The use of ESG factors could result in selling or avoiding investments that subsequently perform well or purchasing investments that subsequently underperform. As a result, accounts that take ESG factors into account could underperform similar accounts that do not take into account ESG factors. In addition, to the extent, ESG factors are taken into account when voting proxies, doing so may not always be consistent with maximizing the performance of the issue or the account holding such security.
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