The Smith’s had been working with another advisor for many years. They had done a fair amount of planning and also had the advisor develop a long-term investment strategy to manage their assets. They were invested primarily in products that were “sponsored” by the advisor’s employer and with retirement fast approaching the advisor was now recommending they each purchase an annuity with the majority of their assets. The Smiths had questions about this product and the advice to switch strategies.
The client scheduled an appointment with Sharkey, Howes & Javer to get a second opinion. After multiple discussions with the client and a review of the proposed annuities and other investment strategies, together we concluded that the purchase of these particular products was likely not the best solution given their specific circumstances and comfort level with the complexity, fee structure, and loss of flexibility. They chose to go a different direction based on the analysis provided by SH&J.
Jonathan and Rebecca came to SHJ to review their balance sheet as it was over weighted with real estate properties. Although it represented significant wealth, their multiple real estate properties were not going to provide much in actual retirement income.
Ages 65 and 67, retirement was quickly approaching and the clients had a primary residence, three vacation homes, and two investment properties. The rental income received on the investment properties was just slightly over the cost to maintain the properties. This left the couple dependent on their investment portfolio for everyday living expenses.
SHJ analyzed their portfolio and once the analysis was shared, the couple was surprised to see that their investment portfolio was insufficient to meet their needs. They needed help in finding alternate solutions. SHJ helped them come to the realization that the equity would eventually need to be tapped by either selling a property (or two) or increasing the loans against the properties. SHJ provided them with a detailed plan of the most efficient way of accomplishing this.
These writings are provided for illustrative purposes only. An individual’s experience may vary based on his or her individual circumstances. There can be no assurance that SH&J will be able to achieve similar results in comparable situations. No portion of these writings is to be interpreted as a testimonial or endorsement of SH&J’s investment advisory services and it is not known whether the clients referenced approve of SH&J or its services.