Terri
Terri is 52, with two teenage daughters. Her passions are cooking, fitness and spending time outdoors. But when her husband told her the bad news, she suddenly found she had few options and little time. She had to find out how to stay afloat, and fast.
Problem
Terri’s marriage suddenly ended after 30 years. After three decades of being a stay-at-home mom, she felt the rug had been yanked out from under her. She worried that if she didn’t get help, she would end up penniless after the divorce.
I would empathize with her to help ensure that she can feel confident in her financial future. I would also re-assure her that I have experience handling similar situations and that I have her best interest in mind.
Approach
Terri was scared. As her financial advisor, I would show her the state of her accounts in black and white. Then she was able to understand with clarity where she was standing so we could set up goals and decide on next steps.
If I sensed that Terri felt exposed and vulnerable, I would try to focus on talking about the numbers by helping her get clear on what she was dealing with. I would provide her with a plan to become financially independent on her own, and I would show her exactly how that could happen.
I would then thoroughly explain the details of the financial plan. That meant understanding risk tolerance, setting goals, building a cash flow statement and a budget. We would also work with other professional advisors to help ensure that tax/legal concerns are appropriately addressed.
I would provide re-assurance to her that we would work through this situation to help ensure financial confidence about her future.
Result
We developed a plan to help ensure that she would be financially independent after the divorce settlement. I would also continue to work closely with her by conducting detailed analysis of her income and expenses to determine if she could afford her new lifestyle and advise on what options she could pursue if necessary. I would ask her if she is satisfied at various points of our journey to make it clear that I have her best interests in mind.
Note: This is a hypothetical story and not indicative of any specific situations or client. It is presented only as an example and not intended as investment advice. Investing involves risk, and there is no assurance that any investment strategy will be successful.
Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
