The foundation of a successful plan for wealth management rests upon four pillars–build, manage, protect, and transition wealth. A concept, which is clearly illustrated in the fictional life of John Jones.
Mr. Jones has successfully started his career, paid off his student loans and accumulated some savings–in the high five figures. He is good at his job but has neither the time nor the inclination to learn to be an investor. Unsatisfied with meager CD returns, Mr. Jones recognizes the need for an investment plan with a professional to design and supervise it.
Arvest can help. Our client advisors have experience designing and supervising personal portfolios of all sizes, in all market conditions. They can assess Mr. Jones’ risk tolerance and goals to develop portfolio strategies, which align his time horizon with his expected resources and future objectives.
As Mr. Jones’ life progresses, he reaches two major milestones. He gets married, and founds a new company with several partners. To accommodate their growing family, Mr. Jones and his wife will need a house, which requires a mortgage. Additionally, capital will be essential to getting his new business off the ground. In this case, a business loan could be considered to supplement funds contributed by the partners.
Arvest can help. Our experienced bankers have a wide range of credit solutions for Mr. Jones to consider when borrowing money for his business. This is not the time for cookie-cutter answers. Instead, it is the time to develop a plan, which integrates the full range of the Jones family’s resources and obligations.
As the business becomes established, and the Jones household grows to include children, new financial considerations arise. Should Mr. Jones have life insurance? If so, how much? And what kind—term, whole life, universal life? What about insurance for the partnership? Would the business consider disability insurance for the partners? If not, should Mr. Jones get some on his own, to insure his income?
Arvest can help. Our client advisors understand the intricacies of insurance—including the benefits, costs, and trade-offs. They can develop a plan Mr. Jones will feel comfortable with—one he can afford while minimizing financial risks for his family.
Trusts and Estates: Transition
Fast forward to Mr. Jones’ retirement and the sale of his partnership interest. He has accumulated a portfolio of commercial real estate, as well as a sizable taxable portfolio of stocks, bonds, and mutual funds. These assets will supplement Mr. Jones’ Social Security payments, so he won’t have to utilize his 401(k) money until age 72—when required minimum distributions will begin.
Mr. Jones is living comfortably, yet there are important questions to consider. If he suffers an extended medical problem, who will handle the investment property? What if he develops dementia? What happens to the family fortune after Mr. Jones passes?
Arvest can help. During retirement, Mr. Jones may establish a revocable living trust to manage his assets, naming Arvest as the trustee. Arvest’s team of experienced professionals will handle the investment strategy, pay the bills, and appoint a guardian if necessary, in the event of cognitive decline. The trust may continue to provide financial protection for the family long after Mr. Jones’ passing.
At any stage in your journey to financial independence, please know Arvest Wealth Management is available to provide guidance, planning, and expertise. You may arrange a no-risk consultation whenever a wealth management question emerges in your life.