Case 1 \u2013 Wealth Management \u2013 Practice, Prof. Stucke
\nCurrent Model (?)
\nCash $ 350,000
\nMunicipal Bonds 3,500,000
\nGovernment Bonds
\nOther Credit 1,500,000
\nUS Equities 5,800,000
\nInternational Equities 800,000
\nEmerging Markets 350,000
\nGold 5,000
\nBitcoin 15,000
\nPrivate Real Estate
\n(residences)
\n3,500,000
\nPrivate Equity 25,000
\nTotal $15,845,000
\n\u2022 Married couple, husband is 63 years old wife is 53 years old
\n\u2022 Three children, ages 17, 19, 23, the youngest finishing private high school, the others in
\nprivate college or grad school
\n\u2022 One grandchild, age 2, parent is unmarried
\n\u2022 U.S. residents
\n\u2022 Husband has advanced diabetes and can no longer work
\n\u2022 Two residences, one in St. Louis and one in Florida
\nREQUIREMENTS
\nI.
\nCover page
\nII.
\nStatement of Purpose\/Intent
\nIII.
\nTable of Contents
\nIV.
\nTheory\/Concept Map (how the pieces fit together)
\nV.
\nAssumptions and Information, including Statement of Net Worth
\nVI.
\nStatement of Goals and Objectives, including Estate Considerations and Emergency Funds
\nVII.
\nInsurance and Risk Management Considerations
\nVIII. Retirement Plan
\nIX.
\nPhilanthropic Objectives and Plan
\nX.
\nEstate Plan
\nXI.
\nBudget and Cash Flow Plan, including Debt Management (if any)
\nXII.
\nAsset Allocation and Investment Considerations\/Concepts
\nXIII. Key Next Steps
\nXIV. Team Bios
\nOverall:
\n\uf0d8\tCash for emergency: 2500000 now, but we should tell the client
\n\uf0d8\tHope no life style change after retiring; want to learn indigo pottery in Japan; spend some time near daughter wherever she will be
\n\uf0d8\tRisk tolerance: Can afford 2-3 million lose, not dip below 12 million<\/p>\n
Retirement:
\n\uf0d8\tPlan to retire at 50 (what to do from now till 50)
\n\uf0d8\tRetirement living expense:
\n1. Keep Hong Kong Cricket Club membership, same living expense\/charity
\n2. Buy a house in Phuket: 750000 to 1million(nice location)
\n3. Still paying rental fee or not?<\/p>\n
Expense(before retirement):
\n\uf0d8\tRental fee: 5500\/month
\n\uf0d8\tHelp rent fee of wife\u2019s parents in France: 1500-2000\/month
\n\uf0d8\tCharity: 25000-50000\/yr
\n\uf0d8\tHong Kong Cricket Club membership: 600 bucks\/month
\n\uf0d8\tLiving expense: 200000\/year<\/p>\n
Insurance:
\n\uf0d8\tRental insurance: 2000\/yr<\/p>\n
Children Education:
\n\uf0d8\t2 yrs of High school in Hong Kong: 28000-30000\/yr
\n\uf0d8\t4 yrs of College in the US: 80000-90000\/yr<\/p>\n
Income:
\n\uf0d8\tIncome: husband – 500k\/yr(continue work for 7 yrs), wife – 250k\/yr(6 yrs)
\n\uf0d8\tPension:80% to 200k of income-160k\/yr\/person?or total
\n\uf0d8\tInvestment profit<\/p>\n
Gift, Additional Philanthropy and Heritage:
\n\uf0d8\tPay for grandkids school(big goals\/optional)
\n\uf0d8\tDown payment of child\u2019s apartment
\n\uf0d8\tLeave WashU 500000
\n\uf0d8\tLeave Singapore zoo 50000(daughter loves it when she was young)
\n\uf0d8\tLeave 50000 to wife\u2019s day school in France
\n\uf0d8\tHusband\u2019s Brother\u2019s son: 150k for college
\n\uf0d8\tWife\u2019s 5 niece and nephews: 50k each
\n\uf0d8\tThe rest is all for daughter<\/p>\n
Feedback:
\n1. Start conversation with how they\u2019re doing or their family or leading into the holiday weekend
\n2. Ask risk tolerance by using dollars but not percent cause people understand how much better
\n3. 100-age is how many percentages equity you should keep; Asset allocation is relevant to age
\n4. Don\u2019t mislead people about risk
\n5. Sit tight because the asset quality is there and you\u2019re protected structurally
\n6. Have a heart to heart with your client
\n7. Quarterly meeting with clients usually, but more frequently in difficult years<\/p>\n","protected":false},"excerpt":{"rendered":"
Case 1 \u2013 Wealth Management \u2013 Practice, Prof. Stucke Current Model (?) Cash $ 350,000 Municipal Bonds 3,500,000 Government Bonds Other Credit 1,500,000 US Equities\u2026<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9501],"tags":[],"class_list":["post-115870","post","type-post","status-publish","format-standard","hentry","category-do-my-assignment-paper"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/115870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=115870"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/115870\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=115870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=115870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=115870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}