A 62-year-old woman’s life was turned upside down when her husband of 38 years passed away. Her home was paid off and her children grown, but her husband had been the primary wage earner and enjoyed managing the finances, so she was completely overwhelmed with the myriad decisions and avalanche of paperwork that quickly piled up around her.
Her first priority was to make sure she would be able to maintain her current standard of living and pay her bills on time. Before she put a new long-term financial strategy in place, she needed to know that she would be OK.
To protect client confidentiality, names have been omitted and some details have been changed.
We began with the items that were most pressing for her. We verified her checking account balance ($5,000) and immediately had her transfer another $10,000 to it from her bank savings account to cover her expenses for the next few months. We organized her outstanding bills, developed a schedule of recurring payments and offered to help her pay her bills and balance her checkbook for as long as she needed.
Our next priority was to review her tax returns, as well as all the information from her husband’s employer, which included paperwork for his employee benefits, retirement plan, deferred compensation, health care plan and life insurance.
She gave us authorization to make inquiries on her behalf, so after doing our due diligence, we were able to complete the forms necessary to have $120,000 in life insurance proceeds mailed to her within two weeks, and to roll over the $190,000 taxable portion of the retirement plan into an IRA, maintaining its tax-free status. We also instructed the former employer to have a $50,000 non-taxable group term life insurance benefit paid directly to our client, and we arranged for her to pick up a check for $5,000 for her husband’s unpaid earnings, unused vacation time, and the balance from his flexible spending account.
We helped her decide how best to maintain her health insurance coverage, and we had her initiate contact with the Social Security Administration to begin her monthly payout.
To protect client confidentiality, names have been omitted and some details have been changed.
It was a huge relief to our client that we would coordinate and complete the necessary paperwork. By helping her claim all the funds to which she was entitled, we were able to ensure she had ample assets and recurring income to support her lifestyle.
She recognized that she didn’t have the time, talent or temperament to handle her financial affairs on her own, so we maintained a relationship to provide ongoing perspective, direction and fee-based investment management services.
To protect client confidentiality, names have been omitted and some details have been changed.