Sounding Board for Financial Decisions Case Study

Overview

Carl and Sandy would like to purchase the vacant lot adjacent to their hill country home, which would provide additional privacy and space to enjoy activities with children and grandchildren. But what was the best way to go about doing so?

Execution

PARTNERSINWEALTH listens to and notes their many questions, such as, “Can we afford to buy it given the other priorities in our life?” “Should we wait to see if the price goes lower?” “If it makes sense to move forward, should we pay cash or finance the purchase?”

 

PARTNERSINWEALTH also asks probing questions like, “Are both spouses on board with the idea?” “If not, what are the dissenting spouse’s concerns?” “Would it be harder to maintain a larger property as they grow older?” “If yes, how do they feel about that?” “Has the client considered if the lot would qualify for the homestead exemption and how that would affect their property taxes?” The firm also consults with their accountant and realtor to gain their perspectives on the idea.

 

Finally, PARTNERSINWEALTH evaluates how their many life goals would be affected by purchasing the property; assesses the tax effect of liquidating investments now for purchase, risk tolerance and family dynamics; considers the impact of adding real estate to the client’s investment portfolio; and creates financial calculations of the various alternatives.

Results

Carl and Sandy ultimately moved forward with the purchase. They are confident they made the best decision because they had the input of a knowledgeable, trustworthy and objective sounding board who understood their financial goals and needs.

 

Client Since: 2008