Below are a number of case studies highlighting how clients may benefit from working with HTG. Click on the case to read the full description of each situation.
Judy never expected to be asked to head up the Key Initiatives Division– a great opportunity, but one which came with many new financial issues to consider. The transition would require a move from Texas to California – how would that impact the family and their finances? The compensation increase would be primarily in the form of deferred compensation including stock options – but she already had a majority of their wealth concentrated in the firm’s equity. “How much is too much?” she wondered. Judy realized that this transition was both exciting and filled with uncertainty.
To help her evaluate the financial impact, her HTG advisor provided a “what-if we moved to California” update to her plan and developed an investment strategy to manage the concentrated equity exposure under various scenarios.
Robert and Rebecca are both professionals in their late 30s, with two young daughters. They had outgrown their New York apartment and sought guidance on buying a home in the suburbs. By analyzing their savings, income and expenses, their HTG team was able to help them understand how much they could reasonably spend on a new home. Robert and Rebecca also wanted to be sure they were saving enough for their daughters’ college education.
Their HTG advisors projected education expenses and recommended appropriate savings and investments that maximized tax-benefits. Through working with us, Robert and Rebecca also identified ways to reduce their expenses so that they could save more for retirement, education and future maintenance costs for their new home. In addition, we collaborated with their attorney and insurance agent to address their estate planning and insurance needs.
Janine and her husband used a mediator to divorce after 25 years of marriage. Janine had always been responsible for the household budget, but had not made time to understand the family’s complete financial picture. The sudden realization of the decisions ahead led her to seek out a resource to guide her.
Her friend recommended that she meet with HTG, where a financial planner helped her inventory the family assets, develop a budget for life after divorce, and evaluate the long term impact of settlement options as they were proposed. Using financial planning software to project into the future, the planner helped Janine to make knowledgeable financial decisions.
Daryl, a PhD in biomedical engineering, enjoys picking biotech stocks, a sector he understands well as head of Research & Development. Continued professional success has generated substantial financial assets, including a 401(k) plan, Roth IRA and taxable accounts. He reached out to HTG for advice on designing a comprehensive investment strategy.
Understanding Daryl’s desire to continue to manage his concentrated portfolio of biotech stocks, his HTG advisor designed a globally diversified portfolio tailored to complement the risk exposures of his biotech stocks. Guidance was provided on the investment choices in his 401(k) and an investment policy statement documented the relationship between the HTG managed portfolio, his stock positions and the 401(k). While Daryl enjoyed the comfort of knowing that the majority of financial assets were professionally managed, he equally appreciated the quarterly performance reviews and market updates – some by video to accommodate his work schedule.
George and Beverly had been spending more than budgeted for their lifestyle expenses, but were still working. They wanted to retire early, but wondered if they could afford to.
The couple shared what retirement “looks like” to them and their HTG team took a detailed look at their spending and retirement resources. The resulting plan revealed that they either needed to work three more years if they reduce spending today, or six more years if they didn’t reduce spending.
As Mary approached her 75th birthday, she wanted to gain a better understanding of the financial wealth she had accumulated so that she could develop and communicate her plans to her three grown children and her two favorite charities. There were multiple accounts at different firms, some in trusts, others in her own name. While the total value was substantial, well above $10 million, there were significant annual cash needs given her two homes and one grandchild with special needs who required significant financial support. Tax and liquidity constraints added to the complexity.
Her team at HTG organized her assets in a consistent, logical framework. Mary’s cash flow needs were projected so she could determine how much she could gift now to her family and her philanthropies. Simplifying Mary’s wealth helped her better focus on what she felt was most important.
John and Ellen had always independently managed their finances. Now that they were approaching age 80 and Ellen had recently started to experience early signs of dementia, the couple approached HTG for help planning for their future care expenses and managing their assets. John wanted Ellen to remain in their home as long as possible so a financial plan was completed projecting increasing levels of in-home care and eventually, a move to a continuing care facility where John could live in an independent apartment and visit Ellen every day within the community.
The HTG team worked to simplify their affairs, checked that their beneficiary designations were in line with their wishes, and coordinated with their attorney to make sure their estate plan was up to date and appropriate powers of attorney and health care proxies were in place. We also aligned their investment allocation to reflect their risk capacity and anticipated income needs. John is now able to devote more time to his family, hobbies and traveling with Ellen while she is able.
If you’d like to learn more about how we can help you successfully shape your financial story, contact us to arrange your complimentary meeting.
