Case Study: Gloria


Meet Gloria, 53, who was referred to the Capstone Team by her accountant. Gloria was recently widowed and continues to parent three children by herself. She has one son who is still at home, one daughter who is in college, and one daughter who is married and recently had a child. Gloria wants her children to appreciate the values of their father by becoming hard working, responsible adults.

Gloria was looking for a financial advisor who would work closely with the trusted family accountant. In the future she wants to be emotionally able to assume more management responsibility but now she wants objective investment and financial advice without the pressure of sales. Gloria wants information to make good decisions without being “fathered or husbanded” by an advisor or family member.

The Client-Centered Consultative Process™ 

Discovery Meeting

  • Capstone Advisor met with Gloria and she filled out necessary forms for securing appropriate information.
  • Advisor and Gloria reviewed her will and diagrammed the transfer of assets.
  • Gloria showed her investments to be currently valued at $780,000.
  • Advisor and Gloria looked at efficient ways to handle her inherited assets.
  • Gloria completed a risk assessment with the help of her Advisor to determine net income tax cash flow needs.

Investment Plan Meeting

  • Advisor provided accountant and attorney with the transfer of assets diagram created at the Discovery Meeting. The accountant and attorney were able to make sensible estate transfer recommendations to protect the assets and reduce future estate taxes.
  • Cash flow models were created to discover tax efficient income and the proper use of her deceased husband’s IRA.
  • Advisor recommended that Gloria keep her husband’s IRA in his name to allow non-restrictive access to the asset prior to Gloria turning 59 1/2.
  • Advisor used a model and demonstrated that the sources of income to her and her family; Social security, real estate lease income and investment distributions, were at the same level as prior to her husband’s death.
  • Advisor and Gloria reviewed current investment portfolio. Advisor provided a new portfolio which reduced her investment costs and volatility.

Mutual Commitment Meeting

  • Advisor and Gloria established a mutual understanding of commitment and decided to move forward together.
  • Gloria signed necessary forms to establish relationship with Capstone Wealth Management.

Implementation of Plan

  • Advisor worked with attorney to update documents that provided a seamless transfer of assets and confirmed titling of assets.
  • Advisor and Gloria created an investment plan that provided a stable income relative to the value of her estate.
  • Gloria and her husband had given financial assistance to their married daughter. Advisor helped Gloria structure a cash allowance that declined over the following three years to help increase her daughter’s self-sufficiency.
  • Advisor and Gloria worked to establish a college education fund for her new grandchild.
  • Advisor and Gloria allocated funds for high school son and daughter when in college.

Reporting of Plan

  • Advisor and Gloria meet regularly to review progress of her financial plan.
  • Gloria calls Advisor with questions or concerns.
  • Advisor and Gloria make changes to rebalance the plan to reduce volatility.
  • Advisor and Gloria review the plan’s performance in relation to cash flow benchmark.
  • Advisor initiates the custom Capstone Family Legacy Workbook process with Gloria.