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Case Studies

Family buying a homeNo matter what your financial concerns are, SFG Mecca Division may be able to help by formulating a strategy designed to meet your goals.  We'll listen to your goals and will develop an action plan in an effort to achieve them.

Here are some examples of real life situations.  Please note that strategies vary by individual situation and are dependent upon criteria such as age, assets, risk tolerance, market, and financial conditions.


Young Couple

Suppose a young couple has a decent income. But between the mortgage on their condo, car loans, and a credit card crunch, this couple has trouble just making ends meet. One major goal is to plan for college.

Goals

  • Reduce outstanding debts as soon as possible
  • Analyze current assets and 401(k) plan
  • Evaluate auto, home, and life insurance coverage
  • Increase cash flow
  • Save for their children's college education

Suggested Strategy

  • Consolidate and significantly reduce debt
  • Analyze and re-position retirement and non-retirement assets
  • Increase insurance coverage with lower premiums
  • Increase cash flow and net worth
  • Establish a disciplined college investment program

Middle Aged Widow

Another typical client is a recent widow whose husband handled their finances.  She may be concerned with future cash flow for retirement and may need financial guidance on investing.

Goals

  • Retire at age 55, if possible
  • Review 401(k) and IRA investments
  • Invest money from CDs to improve yields

Suggested Strategy

  • Develop a retirement savings plan utilizing present and future values
  • Analyze and re-position assets in 401(k) and IRA to an investment mix that provides maximum return within risk tolerance levels
  • Re-position investments into advisor recommended no-load mutual funds and ETFs
  • Implement the selection of high-quality individual bonds
  • Continually monitor investments

Young Single Professional

The typical, fast track professional is one who is looking to establish an appropriate investment strategy concentrating on tax-reduction and retirement planning.

Goals

  • Minimize income tax
  • Review current IRA or 401(k) portfolio
  • Invest for retirement
  • Evaluate life insurance and disability coverage
  • Purchase real estate

Suggested Strategy

  • Reduce income taxes
  • Re-position IRA investments into advisor recommended no-load mutual funds
  • Diversify current investments with relatively attractive returns in light of risk tolerance levels
  • Consolidate life insurance policies
  • Develop investment program for future real estate investment
  • Purchase a comfortable home
  • Increase net worth

Retiree (s)

Single individual or couple in retirement looking to live a comfortable lifestyle without outliving their assets.

Goals

  • Evaluate pension alternative strategies
  • Simplify assets
  • Simplify finances
  • Reduce income taxes
  • Enhance cash flow
  • Donate to favorite charities
  • Leave a legacy to family members
  • Afford nursing home insurance

Suggested Strategy

  • Analyze all assets and recommend a strategic action plan
  • Move money from 401(k) into IRA investment vehicles that diversify and maximize yields within risk tolerance levels
  • Consolidate investment vehicles and increase net worth
  • Reduce income taxes to the extent possible
  • Direct an investment strategy that will maximize future cash flow
  • Coordinate estate planning with attorney
  • Increase net worth and income to help pay for nursing home costs and home health care
  • Monitor investments in light of stock and bond market fundamentals, and national and international issues

Middle Aged Couple Planning For Retirement

This type of client is looking forward to comfortable, but active, retirement years.  They will need ample cash flow for traveling and hobbies.

Goals

  • Comfortable retirement
  • Income stream
  • Leaving a legacy to the family
  • Strategies for pension and 401(k) assets

Suggested Strategy

  • Design a high quality portfolio without taking unnecessary risks while providing an income stream and staying ahead of inflation
  • Assist with related estate strategies
  • Tax free rollover of pension and 401(k) money

Business Entrepreneur

A business entrepreneur desires an objective, professional consultation regarding various aspects of his or her business.

Goals

  • Financial consultation
  • Establish or review existing business insurance
  • Establishing the proper retirement plan

Suggested Strategy

  • Increase profits
  • Reduce expenses
  • Establish prudent insurance coverage
  • Design appropriate retirement plans

Every Person Has a Unique Investment Personality

In our consultation process, we help you identify and develop goals.  Then we construct a personalized investment portfolio to match your needs, risk tolerance, and desired investment returns. Along the way, we use our skills from 30 years of teaching finance classes to communicate difficult concepts in easy-to-understand terms. The result is our extensive list of long-term clients, our best source for client referrals.

For more information, check our Frequently Asked Questions (FAQs) or contact us.

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Things To Consider

  • When was the last time you had an objective review of your insurance choices?
  • Should you have a disability or long-term care policy?
  • What are the right 401(k)/ 403b/ IRA choices for you?
  • Are you a candidate for a 529 plan? How will it impact your tax liability?

What Some Writers Say About Financial Planning

"Anyone can call themselves a financial planner, so be sure and ask what qualifies them to offer financial planning advice and whether they are recognized as a Certified Financial Planner (CFP®)… Ask about continuing education and how they stay current on changes in the financial planning field."

Phillip Moeller

"How to Choose a Financial Adviser "

www.money.usnews.com

"An advisor should have an appropriate amount of education and business experience. While a “finance” or business degree is not required, an advisor’s level of education is important. Experience is even more crucial. Advisors who have not experienced at least two market cycles don’t have enough perspective."

Seth E. Lipner

"How to Select a Financial Advisor "

www.forbes.com

"I would look for somebody who is a certified financial planner….I’d toss out anybody who doesn’t have at least six or seven years of experience…. The most important thing you want to do is you want to interview these guys… If the guy sits there and he talks to you about your overall finance, about what your goals are, about managing taxes, how much you save, what sort of mortgage do you have, maybe you’ve got the right guy. If you sit there and the guy tries to sell you the stock of the day or the fund of the month, what I would do is slowly get out of your chair, thank the guy for the time and start running."

Jonathan Clements

"Tips on Choosing a Financial Planner"

www.npr.com

"It’s my belief that anyone with less than seven years of verifiable experience as a financial advisor should not be considered."

Al Jacobs

"How to Choose a Financial Advisor "

www.ehow.com

"Look for planners that give it to you straight, that don’t promise unreasonable returns, and who stick to the proven principles of financial planning rather than selling “hot” investments or sophisticated investment strategies which seem impressive mostly because they are too complex to actually understand. Planners shouldn’t tell you what you want to hear; their job is to tell you what you need to hear "

Liz Davidson

"Lessons I Learned From Interviewing Over A Thousand Financial Planners"

http://blogs.forbes.com