Stan & Patti: Managing an Inheritance
An unmarried couple in their 30’s, Stan and Patti are both passionate about their artistic careers. They have two children, one grown-up who lives independently outside of the home and one who attends elementary school. Patti’s parents were divorced, so when one of her parents unexpectedly passed away, some financial assets were left to Patti. The couple didn’t know where or how to start managing this windfall. Also, they felt pressure from the late parent’s existing investment manager to keep the assets there. So, they asked Johnny for help. Working together, they first identified long-term goals for the couple. With that information, Johnny recommended adjusting the asset allocation from one that the aging parent had established to one that suited the younger couple’s objectives. Johnny also examined the investment options and fee structure at their existing investment manager. He suggested a different manager that could provide more appropriate offerings while drastically reducing the annual fee burden on the account. After considering Johnny’s recommendations, Stan and Patti transferred the financial assets to a new firm. Johnny guided them through the transfer process, from helping to complete the account transfer forms to ensuring the account was invested according to plan. In the end, the couple had a better aligned investment strategy with far lower annual expenses. And they learned how to complete these transactions themselves.