Financial Planning

We believe in a promissory relationship. Even if a client is suffering from a lack of confidence due to a poor financial decision, we are 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 the client. —Jerry Black, Founder & Managing Principal

 

Challenges

  • The first challenge we faced was navigating the complexities of their amassed estate with the life facts that the relationship was not strong with their children. Not only was the relationship not strong, but the Sheltons did not think that the children were prepared from a spiritual or financial maturity standpoint 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.
  • After assessing the real estate and risks involved, Legacy advisors felt the project represented unacceptably high risk for their financial situation and stage of life, and it did not align with their long term plan and goals; so we advised them against purchasing the property.
  • Against our judgment and swayed by emotions, the Sheltons invested a large amount of their retirement savings into the land a short time before a large market downturn.
  • The Sheltons came to us and explained the investment that they had discussed with us had gone poorly and they needed help. We committed then and there to help them work through the situation and get back on track.

 

Solutions

  • As it related to the estate, we asked the Sheltons, “How much is enough for you and your children?” and “Is the next steward of your wealth properly prepared?”
  • Asking these questions helped them shape an estate plan that would provide for their needs while living and their heirs.
  • During this time, short sales in real estate were becoming popular.
  • To address the disastrous real estate investment, we examined several scenarios and determined a short sale would be most appropriate. We interviewed multiple real estate agents with the Sheltons and found the best agent to short sell the property.
  • As a result, the Sheltons took a loss on the property, but it did not completely cripple them.
  • Legacy advisors helped the couple work through the tax implications and got them back on track for retirement with an updated plan.

 

Ongoing Results

After their unwise decision to purchase speculative real estate and the loss that followed, the Sheltons had to make some dramatic changes with their cash flow, but we are happy to report that the couple was able to retire debt free. Through this situation the Sheltons learned the power of contentment and that even after making a catastrophic mistake, with trusted people around you it is possible to recover and come out with an important learning experience.

Through the encouragement of Legacy advisors and family members, the Sheltons have reconciled with their children which has brought clarity to the relationship.

As evidenced by this case study, we believe in a promissory relationship. Even if a client is suffering from a lack of confidence due to a poor financial decision, we are 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 the client.

 

While this client story is true, names and certain information have been changed to protect identities.

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