Private Client Solutions

Ted, Sally, Steve and Jill: A High Net-Worth Family with Diverse Needs

Financial Situation:

Ted and Sally are a wealthy couple with two adult children, Steve and Jill. Steve and Jill are each married with several children. Ted, Sally, Steve, and Jill are seeking an investment advisor capable of serving the diverse interests of the entire family and working with the families’ CPA and estate attorneys. It is important to them that the advisor they choose is intimately attentive to all of their various day-to-day financial needs. Ted and Sally also need help managing their trust accounts, IRAs, and individual accounts—as do Steve, Jill, and their respective spouses. Finally, Ted and Sally want to set up and maintain 529 college savings plans for each of their grandchildren.

The L&S Solution:

As a family-focused investment advisor with nearly 40 years of experience catering to the complex needs of high-net worth families, we believe L&S is exceptionally well equipped to help Ted, Sally, Steve, and Jill pursue their goals, both individually and as a family, as well as work with the families’ team of other financial professionals. We would offer a wide variety of equity and fixed income strategies, with differing style and investment characteristics, to manage the family’s various trust, IRA, and individual accounts. L&S always takes the time to get to know the family members of our clients. We would do that with Ted, Sally, Steve, and Jill, so that our financial guidance is rooted in a deep understanding of their needs.

Learn more about L&S Advisors’ full suite of wealth management services for high-net worth families.

Bill and Jane: A Retired Couple Looking to Downsize

Financial Situation:

Bill and Jane are a retired couple in their mid-sixties. They still live in the same large home and upscale neighborhood where they raised their family. The house has appreciated tremendously since their purchase many decades ago, and it now represents the largest asset in their estate. Bill and Jane would like to downsize to a condo, but fear the large tax liability from the sale of the house. After the sizable capital gain taxes they’re expecting to pay, Bill and Jane intend to invest the remaining proceeds from a sale. They are seeking growth, but they’re also concerned about protecting their assets from downside loss.

The L&S Solution:

Drawing on our diverse range of strategies, L&S would offer Bill and Jane a multi-strategy blend of equities and fixed income to seek a balance of risk and opportunity. By investing Bill and Jane’s home sale proceeds in a mixture of L&S Guardian, Explorer, and Sprinter Equity Strategies, we would pursue not only downside protection but consistent and diversified exposure. Additionally, L&S would offer Bill and Jane a variety of fixed income strategies to attempt to provide additional income through yield from the sale proceeds.

Learn more about L&S Advisors’ multi-strategy blends and how they can benefit your portfolio.

Mary: A Soon-to-Be Retiree with Too Many Accounts

Financial Situation:

Mary is in her late sixties and ready to retire. She’s neglected her finances for years and when she finally reviews her situation, she discovers that she has 15 different accounts opened by multiple financial advisors. In addition to 8 personal trust accounts and 7 IRA accounts, Mary also has several accounts from her deceased parents’ estate that have not been distributed—though it’s been years since their passing. Altogether, these accounts encompass 37 mutual funds and over 150 different positions. Mary is overwhelmed by all her accounts and positions and unable to determine her overall exposure.

The L&S Solution:

As part of our complementary portfolio review for prospective clients, L&S would review Mary’s numerous accounts and positions and compile a single comprehensive statement that shows all of her holdings. Sitting down with Mary, we would discuss what we perceive the current risk profile of her total financial situation.  We would recommend ways to consolidate her many accounts, make sure her allocation to equities and fixed strives to meet her risk parameters, and present opportunities to potentially generate income for her retirement.

Learn more about L&S Advisors’ relationship-based service and how a complementary portfolio review can help.

Erica: A Widow with Sizable Business Proceeds

Financial Situation:

Erica is in her mid-fifties, with a very successful business she built with her late husband. The business represents the vast majority of her wealth. Since her husband’s death, she’s found it difficult to keep the business going, so she’s finally decided to sell. Erica wishes to use the proceeds from the sale to create an income stream for herself to maintain the lifestyle to which she’s accustomed. She would also like to grow her assets in order to provide something meaningful to pass on to their children and grandchildren.

The L&S Solution:

Guided by our unique risk management philosophy, L&S would offer Erica an investment plan that balances opportunity and risk according to her specific goals. One option would be our L&S Guardian Strategies, which seek growth through concentrated tactical participation while still maintaining a strong focus on capital preservation. Utilizing one of our L&S Guardian Strategies, L&S would seek to provide Erica with the ability to make monthly withdrawals to maintain her lifestyle while simultaneously seeking to grow her assets with the goal of leaving a  sizable inheritance for her children and grandchildren.

Learn more about how L&S Advisors’ risk management philosophy balances opportunity and risk according to your needs.

Alan: A Tax-Sensitive Client

Financial Situation:

Alan is in his seventies, with a portfolio of securities that he has held for many decades. He has worked with the same investment manager for many years, but now wishes to switch. However, he fears that selling his large positions from his current portfolio will trigger a significant tax liability.

The L&S Solution:

L&S provides customized portfolios for investors with complex situations, including situations such as Alan’s. In this particular case, L&S would recommend selling positions in his portfolio that have losses, as well as positions with small tax gains. Overtime, we would recommend reducing very large equity positions, being mindful of tax liabilities. We would utilize the proceeds from these sales to increase the diversity of holdings over time. In addition, if appropriate for Alan, L&S would also consider selling options against some of the legacy positions to seek to generate additional income for Alan until these positions can be sold. In this way, L&S could potentially help Alan minimize his tax liability.

Learn more about L&S Advisors’ personalized portfolios and how they can help you minimize your tax liability.

4 Education: A Donor-Advised Fund

Financial Situation:

Tom and Linda wish to create a charitable vehicle to provide scholarships to low-income elementary students. Tom and Linda need help establishing the fund which they wish to call 4 Education and are also looking for a financial advisor to manage the fund’s assets.

The L&S Solution:

L&S has experience working with clients to setup and manage the assets for donor-advised funds. L&S would work with Tom and Linda to establish the fund with a custodian as well as work to develop the appropriate strategy to manage the assets of 4 Education.

Learn more about the services and strategies L&S Advisors offers for donor-advised funds.

Disclosure: These “Client Solutions” are for illustrative purposes only. These are not actual clients, nor does this information represent actual client information or L&S Advisors’ ability to achieve your goals.