Meet Linda, a woman who will soon be retiring, and John, a financial advisor who wants to help Linda make the best possible decisions for her financial wellbeing!
About John
John is a newly independent financial advisor who overcame numerous obstacles to grow his book of business. Limited resources, manual tasks, and time constraints posed significant challenges for him since leaving a major wirehouse. However, everything changed when John discovered the power of VRGL. Since incorporating VRGL into his prospecting process, he's experienced an acceleration in time to generate new revenue. Let's explore how John leveraged VRGL to impress Linda, a prospect, and secure her business.
Linda's Retirement Planning
Linda is a 62-year-old woman, who plans to retire from her career at a California tech company after a successful IPO. She recently sold her home in California, and is in the process of moving to Myrtle Beach, South Carolina to live near her son and grandchild. Linda briefly worked with an advisor but has mostly handled her own investments. This transition made her realize her need for an advisor to help ensure her portfolio aligns with her retirement goals. She is introduced to John, her son's financial advisor, and requests that he take a look at her current investments. Upon arriving in South Carolina, she has a meeting scheduled to review his proposal.
Intake | Statement Extraction
Thanks to VRGL's statement extraction feature, John efficiently extracts all the necessary information, allowing for a comprehensive analysis of Linda's investment portfolio. To initiate the process, John invited Linda to upload her brokerage statements with VRGL's customizable invitation feature and access her retirement account holdings by leveraging VRGL's third-party integrations. When confirming her $2.5mn of invested assets, Linda informs John that after the sale of her California home and purchase of her South Carolina beachfront property, she will have $500,000 of uninvested cash making her total investable assets $3m. John enters this cash amount directly into VRGL.
Educate | Analytics
With VRGL's 5 Pillar Analytics, John begins to assess Linda's current portfolio and develop a strategy for her proposed allocation. Below are some key insights that John was able to quickly identify, the recommendations he would make, and how the proposed strategy will impact Linda's life transition.
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Taxes
John is excited to inform Linda that by offsetting her capital gains with capital losses, she will be able to reduce her estimated maximum drawdown from 40% to 26% without paying any additional capital gains taxes this year. By locating taxable yield in her retirement account, Linda will experience a significant increase in cashflow with only a minimal increase in tax drag.
- Risk
Linda told John that while working, she felt confident she could recover or delay retirement if her investments suffered losses. Now that she is retired, she wants a portfolio that will support her $90,000 per year lifestyle without fear of needing to return to work. John's proposed allocation will significantly mitigate her risk by reducing her equity exposure and concentrated risk.
- Diversification
As a result of her employer equity compensation program and investments into companies her friends recommended, Linda's portfolio is currently concentrated in domestic technology companies. John's model helps her diversify into fixed income, global equities, and sectors other than technology. This recommendation will protect her portfolio if the technology sector experiences a harsh regulatory environment or other shock.
Generate | Proposal Management
Equipped with the comprehensive analysis provided by VRGL, John generates a Tear Sheet proposal for Linda that outlines the recommended strategies, highlighting their alignment with her retirement goals. The visualizations provided by VRGL allow Linda to gain a clear understanding of her financial picture. Impressed by the consolidated view of her investments and the clarity of the proposal, Linda chooses John as her sole financial advisor.
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