Hypothetical Scenarios, Thoughtful Solutions
At our Franklin Lakes office, we aim to guide individuals and families toward their financial goals — whatever the circumstances may be. We’ve helped navigate a wide range of scenarios. Below are examples of hypothetical situations that illustrate the kinds of strategies we may use when supporting clients through complex financial decisions.
Hypothetical Scenarios, Thoughtful Solutions
At our Franklin Lakes office, we aim to guide individuals and families toward their financial goals — whatever the circumstances may be. We’ve helped navigate a wide range of scenarios. Below are examples of hypothetical situations that illustrate the kinds of strategies we may use when supporting clients through complex financial decisions.
From High Concentration to Greater Financial Confidence
Portfolio Value: $6.6M
When Sarah, a recently retired single woman, walked into our office, 77% of her $6.6M portfolio was locked in Apple stock—a concentration that kept her awake at night. Previous advisors had told her to “just diversify slowly,” but none addressed her immediate tax crisis.
Our 72-Hour Action Plan: Within three days, we delivered her “Welcome to the Family” experience with an in-office strategy session, personalized welcome package, and detailed roadmap. But the real magic happened in our analysis.
We discovered a Roth Conversion opportunity that could help maximize her 32% tax bracket and potentially reduce her traditional IRA tax burden.
Portfolio Transformation: Using precision tax-lot management, we reduced her Apple concentration from 77% to 30%.
The Doctor Who Doubled Down on Excellence
Portfolio Value: $9M
Dr. Martinez initially planned to test us with just $5M, keeping assets spread across multiple brokers. After experiencing our hands-on methodology at several client events, he made a decisive move: consolidating his entire $9M portfolio with us within 90 days.
The Complexity Challenge: His financial picture included a substantial inheritance, home sale, and hundreds of scattered positions across three brokers.
Discovery: During our comprehensive review, we found unclaimed social security benefits and possible tax loss harvesting opportunities which could potentially offset capital gains and reduce tax pressure of his complex inheritance and home sale.
The Portfolio Transformation: Where others saw chaos, we saw opportunity. We consolidated hundreds of positions and shifted focus to taking steps that could help minimize taxable events and create a streamlined purposeful allocation that better aligns with his retirement timeline.
Sibling Partnership
Portfolio Value: $7.5M
When their father passed unexpectedly, two siblings inherited $1.5M each in traditional IRAs and initially entrusted us with the $3M to “test the waters.” Twelve months later, they moved their remaining $4.5M to us.
The Inheritance Optimization: Each sibling faced the 10-year IRS distribution window for their Beneficiary IRAs. We developed sophisticated distribution strategies that optimized withdrawals against their current income levels, potentially saving in taxes.
Dreams to Reality: When one sibling shared his woodworking shop dreams, we didn’t just nod—we created six detailed funding scenarios showing exactly how his passion project could become reality while helping minimize potential financial risk.
Advanced Tax Architecture: We executed strategic relocations of equity holdings from Beneficiary IRAs to taxable accounts, then diversified IRA investments across fixed income, credit instruments, and dividend stocks—specifically designed to help minimize taxable income during the critical distribution period.
A Widow's Journey from Overwhelmed to Empowered
Portfolio Value: $3M
Maria’s husband’s passing left her with a financial puzzle: six scattered retirement accounts, complex estate settlement issues, and previous advisors who seemed to vanish when she needed guidance most.
Within 48 hours of our first meeting, she experienced our “Welcome to the Family” process—an in-office consultation, personalized welcome package, and the handwritten thank you note that brought tears to her eyes.
The Hidden Tax Trap: Our analysis revealed Net Unrealized Appreciation (NUA) opportunities within her 401(k) that could potentially save in taxes. Previous advisors had completely missed this strategy.
Simplification Without Compromise: We consolidated her six retirement accounts into two optimized accounts while enhancing tax efficiency and simplifying her financial life.
Emotional Transformation: Beyond the numbers, we provided the compassionate guidance she needed during this difficult transition.
Multi-Generational Legacy in Action
Portfolio Value: $15M
Frank (77) and Nancy (81) came to us because Frank was in poor health, and they wanted to find an advisor that they both felt comfortable with. This was very important, particularly for Nancy because she previously had little involvement in their finances. They were looking not only for an advisor, but also an educator.
Specialized Health-Centered Planning: We implemented investment and tax strategies specifically designed around the husband’s health condition and reduced life expectancy.
Spouse Empowerment: Recognizing the importance of preparation, we educated and gradually involved Nancy in all financial decisions, ensuring seamless transition when needed.
Innovation in Action: We allocated 10% of their portfolio to alternative investment strategies, with the intent to optimize tax outcomes while diversifying and focused on preserving wealth across market cycles.
Legacy Architecture: Our estate planning review revealed outdated documents that could have created significant complications. We recommended immediate updates and implemented a multi-generational approach including family financial education and future family retreat involvement.
Generational Impact: Their adult children now participate in quarterly family financial education sessions, ensuring the family’s financial wisdom transfers across generations.
Some alternative investments involve a high degree of risk, and returns can be volatile. Investing in an alternative investment may only be suitable for persons who are able to assume the risk of losing a portion or all of their entire investment.
Couple to Widow Client Transition
Portfolio Value: $30M+
George (95) and Elizabeth (72) were clients for about 9 months before George passed away and Elizabeth inherited substantial wealth. We helped the couple implement several strategies before George passed and helped Elizabeth through the financial transition when the time came, addressing both technical complexities and providing emotional support during this difficult period.
Charitable Innovation: Through working with us, Elizabeth gained the financial confidence to pursue her passion for charitable giving and make a meaningful impact in her community. We implemented sophisticated charitable strategies including a private foundation.
Through our focus on charitable strategies, we believe Elizabeth will be in better position to re-direct money toward causes she cares about while maintaining her family legacy.
These stories represent real clients with identifying details changed to protect privacy. Individual results may vary based on specific circumstances, market conditions, and timing of implementation.
Cetera Advisor Networks LLC, exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice Converting from a traditional IRA to a Roth IRA is a taxable event. A diversified portfolio does not assure a profit or protect against loss in a declining market.