Altfest Answers is a video series that uses hypothetical scenarios to take a look at the impact comprehensive wealth management can make on the real lives of clients and their families.

In this episode, “The Runner with a Cash Flow Management Problem,” President Andrew Altfest, CFP®, MBA, joins Principal Advisor and Executive Vice President Karen Altfest, CFP®, Ph.D., for a conversation about the impact Altfest’s holistic wealth management services can have on the financial wellness of our clients.

If you are interested in a complimentary consultation with Altfest, schedule a meeting with us at this link.

 

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Andrew Altfest, MBA, CFP®: I’m Andrew Altfest, President of Altfest Personal Wealth Management. I’m very pleased to be joined by Karen Altfest, Principal Advisor at Altfest. We’re going to discuss “the runner with the cash flow management problem”. Mr. Jeffries is an advertising executive only three years from retirement. He’s been the primary earner in the household. He has one daughter, and he has one grandchild. He has been happily married to Mrs. Jeffries for 35 years. So, Karen, what’s been Mr. Jeffries’ primary issue and how have we been working with Mr. Jeffries?

Karen Altfest, CFP®, Ph.D.: Mr. Jeffries wanted to know if he’d be able to retire and live comfortably in the future. He also wanted to know how to protect his family if anything were to happen to him. Mr. Jeffries thinks of himself as a very frugal man. He doesn’t keep a budget; he doesn’t know the figures and he has one very expensive hobby. He goes to marathons every weekend somewhere in the United States. This can be a very expensive hobby, with flying around to marathons, entry fees, buying the right gear, staying in hotels and eating on the road. He wasn’t aware of that, and to make sure we were all on the same page, we decided to involve Mrs. Jeffries as well.

AA: I could see these costs could really add up. How did we help the Jeffries’?

KA: It was a complex situation, because although Mrs. Jeffries was in sync with her husband, she did have some goals of her own that he hadn’t told us about in the first meeting. She wanted to upgrade their apartment, and that could come at quite a cost as well. It was also important for both of them to take care of their grandchild’s education in the future. In addition, she thought that she and her husband should take one vacation together abroad every year.

AA: So, if we cut to the chase, what was the impact that our financial planning had on the lives of the Jeffries’.

KA: Well, once Mr. Jeffries and Mrs. Jeffries told us all about their finances, we looked at their cash flow, their income, their expenses, and their savings accounts. Having looked at all this and putting everything on the table, we were certainly able to give them options for their retirement, their estate recommendations, and they were able to choose the best portfolio for them. Mr. Jeffries decided to limit the number of marathons he would be in. He and his wife agreed on one major trip a year, and they are currently looking to see what’s important to update in their apartment, and what could be put on a back burner. So in effect, they are able to live the life they want now and to plan for the life they desire in the future.

AA: That’s great. A happy ending for the Jeffries’.

KA: Absolutely.

AA: Talking about money is not always the easiest thing, but it’s very important. Getting on the same page with loved ones about what your financial priorities are is crucial. In this case, paying for a grandchild’s education. No matter what your problems, your challenges are, or what your objectives are – could be retirement planning, could be reducing taxes, could be managing an investment portfolio – whatever it is, feel free to contact us to arrange a consultation with Altfest. We look forward to meeting you.

 

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Illustration is strictly hypothetical and is not representative of actual client experience. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful. Altfest does not provide tax, legal, or accounting advice. In considering this material, you should discuss your individual circumstances with professionals in those areas before making any decisions.

 

Investment advisory services provided by Altfest Personal Wealth Management (“APWM”). All written content on this site is for information purposes only. Opinions expressed herein are solely those of APWM, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation. All investing involves risk, including the potential for loss of principal. There is no guarantee that any investment plan or strategy will be successful.