At the Berg & Bates Group, our vision is to help people manage all the facets of their financial lives while building warm, caring relationships. Successful individuals and families value our ability to handle the financial details, make a plan for their wealth and eliminate their worries. As Private Wealth Advisors, we offer access to the capabilities and planning resources of UBS, one of the world’s largest wealth managers. Our team of experienced professionals goes well beyond investments to navigate the complexities that accompany significant wealth.
The situation
Our team was introduced to a 44-year-old woman with two young children. Her marriage had recently ended, and she wasn’t sure that she had enough money to maintain her lifestyle. Historically, her spouse had handled the majority of the finances and family planning. Her highest priorities were to fund her children’s education and take care of her aging parents. Our team understood the anxiety she felt, and went to work finding answers to her questions.
59%
of widows and divorcees wish they had been more involved in long-term financial decisions
The strategies
We began with a series of in-person meetings and calls to get to know her better and understand her full financial situation. We spent a significant amount of time educating our client about gifting, education and wealth transfer opportunities, as well as the tax implications of each.
Our team constructed a comprehensive plan that illustrated all of her investments, debts and expenses. It helped her plan around her cash flows, and showed that she would have more than enough funds to maintain her lifestyle. This gave her confidence.
We brought in an estate planning attorney and a CPA to draw up the necessary vehicles to support her children. These included 529 plans for education and irrevocable trusts funded by annual gifts up to the tax exclusion amount. She was relieved to know that she could ensure the longer-term security of her children and potential grandchildren.
Our team built a diversified portfolio designed to reach her goals, specifically growth without excessive volatility. We advised her to purchase long-term care insurance for her parents, using gifts up to the annual exclusion amount to pay the premiums. As another protective measure, we made sure that she had life insurance to provide for her children should something happen to her.
“I feel a connection to women who have been ignored in the financial management of their own wealth, and want to be more involved. Helping ensure that women have all they need to live a worry-free life brings me joy.”
— Siri Berg
The future
We were able to address our client’s main concerns, relieving her anxiety about the future. As a result of our comprehensive approach, she felt much more confident that she had enough money to live her lifestyle and care for her loved ones, with some extra allowance built in. Because we spent so much time helping the client get to a positive financial mindset, she trusted us enough to refer a friend who had gone through a divorce.
