At the age of 50, Janet lost her husband to a heart attack and inherited the family business, along with her mother-in-law Pat. Janet had been taking care of three children, now ages 16 through 20, and had not worked outside of her home since before they were born. Neither Janet nor Pat had worked at the family business.

Janet quickly found out that her husband had bought luxury items before he died, and charged the debt to the business. His insurance policy was used to repay the debt, leaving Janet with no insurance payout and leaving her concerned about her financial future.

BPP Provides Much-Needed Advice

Janet contacted us for advice. We started by asking Janet to answer the BPP Three Essential Questions: If I live a long life, will I be able to continue living in the lifestyle I’ve become accustomed to? If I had died last night, would my assets go to whom I want with tax efficiency? If I become disabled, how do I want to be cared for and can I afford this level of care?

Janet was stumped. She was not able to answer any of these questions.

So, we started with something that everyone should have—a budget and an understanding of financial assets, liabilities and goals. With this in place, we then worked with the president of the family business, Janet’s accountant, and her attorney, to develop a financial plan so Janet could keep her home and be able to care for her children and mother-in-law.

We helped Janet understand what she owned, how much debt she carried, what was good debt and what debt needed to be cleared. We then organized her financial files and created an electronic system so she could easily access documents. We also invested her money and worked with family business leadership to create a job so that Janet could maintain her desired lifestyle. Lastly, we determined how much insurance she needed and helped her obtain it.

Our goal was to make Janet’s goals achievable and set her on that path. We are happy to say Janet is now confident she can answer the Three Essential Questions!

This material is being provided for general information purposes only and should not be construed as investment, tax, or legal advice, or as a solicitation to buy or sell any specific securities product or used as the primary determinant of the best strategy. Although these are actual events, not all clients will experience the same result and there is no guarantee of future performance or success.