Charles and Lindy Shelton are in their 50s with three grown children, but the relationship with the children is not strong. Both are employed and the husband has been with a well-known US corporation for 15 years. They had been faithful to pay down debt, tithe to their local church, and contribute to their retirement accounts. They have two challenges: they want to stay on track for retirement and work through estate issues; and they require substantial help to correct an investment mistake they made previously.
Challenges: Complexity and Uncertainty
- The Sheltons’ amassed estate is incredibly complex and their relationship with their children is not strong. Not only that, but the Sheltons do not think their children are spiritually or financially prepared to receive a large inheritance.
- As it related to retirement, Charles and Lindy were on track to retire, but were also interested in investing in a speculative real estate venture that Lindy’s brother had encouraged them to invest in along with him. The investment they made went poorly and now they need additional help to stay on track for retirement.
How Would Legacy Planning Help the Sheltons?
Learning from Financial Mistakes
- Honest questions. As it related to the estate, we would ask the Sheltons, “How much is enough for you and your children?” and “Is the next steward of your wealth properly prepared?” Asking these questions might help them shape an estate plan that would provide for their needs while living and their heirs.
- Short sales. No investment is guaranteed to be successful. We can help evaluate investment decisions made before working with us to help address ways to get a client’s portfolio back on track. In the case of the Sheltons that could look like working with other professionals to try and exit the investment, even if for a loss. It may be better to take the loss than let it cripple the rest of the portfolio.
- Tax implications. Legacy advisors would help the couple work through the tax implications and get them back on track for retirement with an updated plan.
Thoughtful Course-Correction Can Make All the Difference in Financial Planning
Making small (or even significant) course corrections in your financial plan is not always detrimental. Even after an unwise decision, the Sheltons could still retire debt-free if they made some dramatic changes with their cashflow. Even significant changes like this can be navigable with a proactive plan. With a team of experienced professionals, it’s possible to recover and come out with an important learning experience.
No matter what challenges or mistakes our clients make, our team at Legacy Planning is committed to work with that client to establish a sense of clarity, regain confidence, and increase capability. We do not retract from a difficult financial situation. As long as the client is intentionally committed to solving the problem then we are committed to assisting them.
