Blankinship & Foster, LLC
To help you understand what we do for our clients, we have illustrated some typical situations. A common thread weaves through all these situations. This thread is the assistance we provide our clients in improving their financial affairs. In essence, we provide the knowledge and expertise in today's financial and economic environments that enable our clients to devote their energies to other priorities.
AN OVERALL FINANCIAL PLAN
A two-income family, with little time for managing financial matters, asked us to review their financial situation. We identified opportunities for improvements in retirement planning and funding, insurance coverage, budgeting, savings, investment risk, tax savings, education funding, and care for children in case of the parents' premature deaths. Following the clients' review and request for further assistance, we helped them to achieve these improvements.
ESTABLISHING A FAMILY FOUNDATION
A busy executive decided to retire early after exercising corporate stock options that generated significant proceeds. We assisted the executive and her family in determining and quantifying specific goals. One goal was philanthropic: to determine the amount of capital that could be allocated to family philanthropic funds and to identify the most tax-efficient vehicles for meeting those philanthropic goals. We helped them evaluate alternatives which led to the decision to start a family foundation. We helped them find an attorney to prepare the necessary legal documents. We then designed the investment portfolio needed to meet the foundation’s goals.
DEFERRED-ANNUITY REVIEW
While analyzing an annuity for possible withdrawal, we discovered that previous withdrawals of $29,000 had been erroneously included in taxable income. The client received a tax refund of more than $6,000.
INVESTMENT-PORTFOLIO MANAGEMENT
A husband and wife retained us to help them manage their family's personal and retirement investment portfolios. After determining their aversion to risk and their return objectives, we designed and agreed on a portfolio that met their needs. We then implemented the portfolio, making changes as necessary based on the investment policy. Our ongoing investment management enables the clients to devote their energies to other areas.
ESTATE-PLANNING ASSISTANCE
A couple with a young child sought our planning advice for a "financial check-up." In our initial interview, we discovered they did not have wills. We explained the problems that could arise, particularly in the case of simultaneous deaths. We helped the clients make decisions concerning the specific individuals they wanted to care for their child, the trustee for the child's assets, and alternative beneficiaries. We discussed the estate tax benefits of splitting assets with the use of "A" and "B" trusts. We gave the clients the names of three estate planning attorneys in their area and made sure they selected one and made an appointment. We followed up with the selected attorney and clients to provide information and assistance as needed.
POST-DIVORCE ACTION PLAN
A divorcee requested assistance in coping with her new financial responsibilities and lump-sum financial settlement following her divorce. We reviewed the consequences of the divorce settlement on her insurance, taxes, income needs, assets and liabilities, retirement, and estate plan. We identified potential improvements and educated her about her alternatives. After helping her to establish goals and prioritize an action plan, we helped her complete many of her action items.
EARLY RETIREMENT
A 48-year old executive wanted to retire early. A retirement analysis indicated the amount she would have to save each year to retire at 55, at 60, or at 65. We were able to help her create an action plan to be able to save the additional amounts necessary to build her retirement capital. We also helped her plan for retirement itself: the activities she planned to do, dreams she would like to fulfill, steps she needed to take in preparation for this wonderful new phase in her life.
COLLEGE-EDUCATION FUNDING
A young couple wished to begin saving for their newborn child's education at a private college. After discussing their investment attitudes and aversion to risk, we projected the effects of inflation and proposed a target annual savings rate. We then recommended the vehicles to use and the specific investments to meet their goal.
BUSINESS-CONTINUITY PLAN
A business owner was concerned about the continuation of his business after his retirement or in the event of his disability or premature death. Knowing his general financial situation, we reviewed several possible actions and the attendant pros and cons. We coordinated activities with the client's attorney, CPA, and insurance agent to clarify and improve the alternatives. We then helped him to reach decisions and implement them.
INSURANCE COVERAGE
A man in his forties believed that he might have insufficient life insurance but did not wish to be sold more coverage than necessary. We reviewed his existing coverage, his financial situation, and his goals and objectives. The coverage was adequate, but the cost of one policy was too high. His disability insurance coverage, however, was significantly lower than needed. We helped him acquire a new, lower-cost life insurance policy and a new personal disability policy to augment his company-paid coverage.
PENSION DISTRIBUTION PLAN
We analyzed alternative ways for a couple to receive a pension distribution in retirement. After weighing pros and cons, and considering their existing income sources, they decided on a lump-sum payment that was rolled over into a self-directed Individual Retirement Account.
We then helped the client develop an investment portfolio designed to preserve both capital and purchasing power.
HOME-PURCHASE DECISION
A 60-year old woman wanted to know if she could buy a house and still have sufficient funds to live on for the rest of her life. We projected the adequacy of her retirement funds based on different home price assumptions. We then recommended a maximum home price and down payment that would still allow her to meet her living expenses.
INHERITANCE INVESTMENT PORTFOLIO
We assisted a family in identifying goals for funds received from an inheritance. We then outlined several combinations of investments to meet their goals with less risk than the preliminary portfolio they had designed. We recommended specific investments and assisted with the purchases and the management of those investments.
CONTINUED FINANCIAL ADVICE
A busy entrepreneur did not have time to investigate all of the personal financial issues that arose after completing the initial financial planning process and the action plan it generated. We assisted him with these issues, including investment analyses, post-investment follow-up, tax planning, insurance needs, a real estate purchase, several loans and lines of credit, improved liability-insurance coverage, and other items. As a result, issues were addressed and resolved in a timely manner without significant time expended by the client, often with a savings in cost.
The above examples are representative of the concerns our clients bring to us. There are many others. We would be pleased to discuss how we might assist you with your personal financial concerns.