Susan, who has recently retired, wants to make sure that her investments are managed in such a way that the income from her investments can fund her current lifestyle, now that she is no longer receiving a salary. She also wants to find an advisor she can trust to manage the day-to-day aspects of investment management, so she can focus on things she enjoys doing.
Susan was the chief financial officer (CFO) at a biotech company, until she recently retired. Susan has amassed a sizable amount of savings, distributed between retirement accounts and brokerage accounts. Since she is no longer receiving a salary, she wants her investments to generate enough income so she can cover her basic expenses, travel, and spend time doing triathlons—a long-time passion of hers.
Since Susan was a CFO, she knows her way around the financial world, and has been managing her own investments for most of her career. Now that she has retired, however, she does not want to spend her time monitoring her investments and making changes as the market shifts. She wants to find an advisor she can trust to handle her investments, but it is very important to her that her advisor is very knowledgeable about investment management. She wants an actual investment manager with education and experience, not just a salesperson who calls himself a financial advisor.
Our recommendation is that Susan’s investment portfolio be designed to fit her goals: income to sustain her lifestyle, with some growth to maintain her purchasing power over time. We would monitor her portfolio closely, and make changes as necessary, checking-in with Susan on a regular basis so she knows where her investments stand, without having to constantly monitor them.
(Note: These case studies are hypothetical, do not involve a client, and should not be construed as a guarantee.)