Every once in a while, I get a thank you call from a client that takes my breath away. Here’s the story behind a recent one.
In 2009, a friend asked me to meet with her 84-year-old mother. Her mom was recently divorced and the only asset she had was her home. She was in the process of selling it and would need to invest the proceeds for the costs of assisted living. Having made some poor investment decisions in the past she was very worried about running out of money.
I met with her mom and all the children. One child wanted an aggressive portfolio; another wanted all the money in cash. We ran a financial plan that offered a high probability of success, but given her significant expenses, the likelihood was that the kids would need to support her in 10 years or so. We invested in a conservative portfolio that did have some stock exposure.
I worked with her mom on her budget, and we were able to reduce some of her expenses.
The investment ride was bumpy at times, with some down markets along the way. The family discussed moving all of their mom’s investments to cash several times, knowing that if mom did run out money, they would be responsible. I encouraged them to stick with the agreed-upon plan. They earned much more than they would have in cash.
Their mom would call me every month for a distribution from the portfolio. I suggested she receive a set amount each month, but she enjoyed the calls. I did too. I heard about the grandchildren, dinners, friends, and family.
She passed away recently at age 99.
Her daughter called to thank me. She was emotional as she told me how much she appreciated what I had done for her mom.
“We never thought the money would last", she said, “You had a plan, kept her invested, and because of that she passed away knowing that she did not need to be supported by her children.”
We work to help clients Maximize Their Return on Life. Sometimes the impact is much more than we could imagine.
Shari Greco Reiches
Shari co-founded Rappaport Reiches Capital Management with one goal - to maximize the return on life for her clients. Please connect with Shari below. She loves to talk about investing, financial planning, and Barry Manilow.