Client Situation: Jane is a 48-year-old stay-at-home mother of three daughters who has been married to Ben, a real estate investor, for 18 years.  Ben has asked for a divorce.  Jane is concerned about providing for herself and her three children.  She is also unclear as to how she will be paid for her share of the illiquid real estate investments.

Investable Assets: Together they have $8 million of investable assets, about $3 million of which is liquid in a joint account and $1 million in a retirement account.  The remaining $4 million is in illiquid real estate investments. The couple also has two homes worth another $3 million combined.

Beacon Pointe Value Add:

We understand that every client has her own unique financial circumstances. Our goals in this case were:

• Education – Jane wanted to learn about budgeting and investing. Through attending our Women’s Advisory Institute (WAI) events, she felt comfortable that we would take the time to get to know what was truly important to her.
• Financial Planning – We helped Jane determine what she and Ben’s current expenses were and estimate what they would be for her once they were divorced. We ran several scenarios to determine how much she could spend annually so that her assets had a high likelihood of lasting for the rest of her life.  We then provided her with an action item checklist that has helped her organize her financial life.
• Portfolio Management – Jane had little experience with investing. She wanted to achieve growth in the portfolio but was concerned about risk. With Beacon Pointe’s access to institutional portfolio managers focused on protecting capital in volatile markets, her portfolio was well-positioned to achieve growth but provided some downside protection.

Goals:

• To organize her financial life
• To understand her financial picture better, including assets and expenses, and how different divorce settlements would affect her financial future
• To gain peace of mind that she will be financially secure throughout her life
• To plan for the costs of raising her daughters including private school, camp, college, and weddings

 Beacon Pointe Action Items:

• Investment Strategy
  • Developed and implemented a customized investment plan tailored to Jane’s financial goals and objectives
• Get Financially Organized
  • Setup a Personalized Online Financial Planning Dashboard
    • Budgeting
    • Expense Tracking
    • A complete picture of net worth, including illiquid assets
  • Account Consolidation
  • Financial Plan
  • Beneficiary Review
  • Insurance Policy Review
• Divorce Settlement
  • Showed her different financial outcomes of receiving 50% of assets plus alimony versus a larger share of the assets with no alimony
• Children’s Expenses
  • Developed cost estimates, timelines, and payment strategies to meet her share of the larger expenses

Start your next chapter with clarity and confidence. We can help you navigate the financial complexities of divorce and plan for your future.

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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. 

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