fbpx

Mock Trials

Whatever stage of your legal career you are in, we are ready to help you design, build, and protect your financial future.  Explore our Mock Trials to learn more about how we might be of help to you.

*Note: These scenarios are hypothetical, do not involve a Maycomb Wealth Member/Client, and should not be construed as advice or a guarantee of any results.*

Associate

Robert

Age: 28 years old

Areas of Concern: Budgeting, Insurance, and Estate Planning

Robert is a high-earner, but doesn’t know what he’s spending each month and on what. His only disability insurance is provided by his law firm.  His uninsured motorist coverage is insufficient. He has no umbrella insurance policy or any estate planning documents in place. As far as saving goes, he is contributing to his 401(k), but not otherwise investing. Robert keeps all his earnings in a bank account that isn’t earning much interest. He doesn’t have a budget and likes the idea of focusing more on cash flow and better defining his goals, but isn’t sure how to find the right advisor to help.

 
How We Can Help

Work with Robert to identify what money is coming in, going out, and being saved each month. Recommend goals tied to cash flow projections we provide. Organize his accounts into a personal website he can access on a smart phone at any time. 

Review his benefits, including those provided by his law firm. Help Robert know what will be covered and in what amounts if he has a disability, auto accident, or is sued for a property or personal injury claim. Help him price supplements to existing coverage so he can decide what, if any, additional amounts he wishes to purchase. Refer Robert to a licensed estate planning attorney who can discuss the benefits of a will, power of attorney, health care directive, among other documents that may be appropriate for his situation.

Income Partner

Sarah

Age: 34 years old

Areas of Concern: Investment Management and Education Planning

Sarah has a dozen accounts (some at her law firm, and some outside of it) but isn’t sure what investments are contained in them. She doesn’t know how much her funds or other investments cost or whether they are properly diversified. She has two young children and wants to start saving for their education, but also wants to pay down her own student loans and save for retirement.

 
How We Can Help

By helping Sarah assess her tolerance for risk, we can help her understand how much risk she may need to take to reach her goals and objectives which is equally important. Help her design an investment policy statement that tailors a strategy across all her accounts to consolidate them into one global portfolio. Help Sarah understand the potential value of a clearly-defined systematic strategy to re-balance her investments to address the ups and downs of the markets.

Discuss the pros and cons of 529 plans and other tax-advantaged ways to save for education goals. We can help Sarah understand when using one’s home state’s plan might make sense, as opposed to when one might want to consider using another state’s plan, and evaluate how much might be needed for these goals to try and avoid materially under-funding or over-funding these accounts at the expense of funding other goals.

Income Partner

Sarah

Age: 34 years old

Areas of Concern: Investment Management and Education Planning

Sarah has a dozen accounts (some at her law firm, and some outside of it) but isn’t sure what investments are contained in them. She doesn’t know how much her funds or other investments cost or whether they are properly diversified. She has two young children and wants to start saving for their education, but also wants to pay down her own student loans and save for retirement.

 
How We Can Help

By helping Sarah assess her tolerance for risk, we can help her understand how much risk she may need to take to reach her goals and objectives which is equally important. Help her design an investment policy statement that tailors a strategy across all her accounts to consolidate them into one global portfolio. Help Sarah understand the potential value of a clearly-defined systematic strategy to re-balance her investments to address the ups and downs of the markets.

Discuss the pros and cons of 529 plans and other tax-advantaged ways to save for education goals. We can help Sarah understand when using one’s home state’s plan might make sense, as opposed to when one might want to consider using another state’s plan instead and evaluate how much might be needed for these goals to try and avoid materially under-funding or over-funding these accounts at the expense of funding other goals.

Lateral

Kathy

Age: 44 years old

Areas of Concern: Investment Management and Retirement Planning

Several years after making non-equity partner, Kathy took a break from practicing law to start a family. She is thinking about going in-house, returning to her old firm, or perhaps may join a new one. She doesn’t care about stock tips. Kathy wants advice on which she can rely because these next steps matter, personally and professionally.  

 
How We Can Help

Kathy needs to understand more about how much she needs in order to have the kind of retirement she desires. We will help her analyze what she has saved, how much can she expect to make at her next job, what’s a reasonable potential rate of return over the long term for her risk tolerance, and what are her expenses now and expected in retirement?  Like many attorneys, Kathy doesn’t have the desire or time to adequately determine this herself.  We will help design a targeted financial plan that should be delivered in 90 days or less.  If Kathy wants us to continue to help her implement the plan after we deliver it we can do that.  If not, she can implement the plan herself without us.

Equity Partner

Mike

Age: 46 years old

Areas of Concern: Investment Management, Tax Planning, and Real Estate

The juggle of life is even more real than it was 10 years ago. Mike and his wife have 20 accounts, receive K1s, own two residential properties, an investment property, and are routinely in the highest federal and state tax brackets. A husband, son, father, lawyer, and trainer of a new Boykin Spaniel named Lucy, the last thing Mike wants to is spend time monitoring and optimizing his investments and financial plan.  There must be a better solution. 

 
How We Can Help

Is Mike still using the same tax accountant he used when he was an associate attorney? Is that accountant a true tax planner, or more of a tax return preparer? We can help him appreciate the difference, and provide a potential referral if he would like us to do so.

On the investment side, there are a number of ways we can help Mike try to ensure he’s optimizing his finances for tax purposes. Is he considering the Roth IRA and Roth 401(k) options available to him? He might benefit from donating highly appreciated stock to charity instead of money from a taxable account. If a triple tax advantaged HSA Account is a viable option for him, is he taking advantage of it? Is he taking advantage of his state’s deductions for 529 and other accounts? Has Mike considered buying iBonds directly from the U.S. Treasury for use as a second—tier emergency fund? Lastly, does it make sense for him to own a second home and an investment property? 

Equity Partner

Mike

Age: 46 years old

Areas of Concern: Investment Management, Tax Planning, and Real Estate

The juggle of life is even more real than it was 10 years ago. Mike and his wife have 20 accounts, receive K1s, own two residential properties, an investment property, and are routinely in the highest federal and state tax brackets. A husband, son, father, lawyer, and trainer of a new Boykin Spaniel named Lucy, the last thing Mike wants to is spend time monitoring and optimizing his investments and financial plan.  There must be a better solution. 

 
How We Can Help

Is Mike still using the same tax accountant he used when he was an associate attorney? Is that accountant a true tax planner, or more of a tax return preparer? We can help him appreciate the difference, and provide a potential referral if he would like us to do so.

On the investment side, there are a number of ways we can help Mike try to ensure he’s optimizing his finances for tax purposes. Is he considering the Roth IRA and Roth 401(k) options available to him? He might benefit from donating highly appreciated stock to charity instead of money from a taxable account. If a triple tax advantaged HSA Account is a viable option for him, is he taking advantage of it? Is he taking advantage of his state’s deductions for 529 and other accounts? Has Mike considered buying iBonds directly from the U.S. Treasury for use as a second—tier emergency fund? Lastly, does it make sense for him to own a second home and an investment property? 

Nearing Retirement

Evelyn

Age: 59 years old

Areas of Concern: Retirement Planning, Charitable and Legacy Planning, and Social Security

Evelyn is starting to realize that while there is a significant balance in her 401(k) and cash balance account at her firm for whom she’s worked for 30 years, she’s not done any real planning on when and in what amounts to take distributions.  She’s also not sure how to analyze the optimal age for her to claim social security benefits. She heard someone at a party talk about how it was surprising to see how much they paid in taxes when taking money from their 401(k) and there was something about the cost of Medicare, but she didn’t quite catch it.

 
How We Can Help

Evelyn has significant opportunities to optimize her tax liability if she plans accordingly over the next 5-10 years. We can help her understand the difference between taking social security at 70, versus taking it earlier. She might be able to retire earlier and take lower tax distributions from her 401k. She may also benefit from discussing longer term planning with her children and thinking about estate and legacy planning.

Newly Retired

Dan

Age: 68 years old

Areas of Concern: Retirement Planning, Insurance, and Tax Planning

Dan had a great career and has recently left his firm. He is not sure how much money he can spend per year in retirement. He is also about to purchase an annuity from a fellow member of his golf club, and wants a second opinion before doing so. Dan could benefit from a financial plan that shows him a cash flow projection for his retirement.

 
How We Can Help

The financial website we build for our planning Members/clients can show Dan how an annuity or other solution might help him achieve his goals. It can also help him understand what a reasonable withdrawal rate might be for him during retirement. Additionally, Dan needs to keep in mind that he will be required to take Required Minimum Distributions (RMDs) from some of his accounts in a few years.  Smart planning on this now can help consolidate his interests in charitable, tax, legacy, and estate planning.  This will likely require careful coordination among his accountant, estate planning attorney, insurance professionals, and ourselves.

Newly Retired

Dan

Age: 68 years old

Areas of Concern: Retirement Planning, Insurance, and Tax Planning

Dan had a great career and has recently left his firm. He is not sure how much money he can spend per year in retirement. He is also about to purchase an annuity from a fellow member of his golf club, and wants a second opinion before doing so. Dan could benefit from a financial plan that shows him a cash flow projection for his retirement.

 
How We Can Help

The financial website we build for our planning Members/clients can show Dan how an annuity or other solution might help him achieve his goals. It can also help him understand what a reasonable withdrawal rate might be for him during retirement. Additionally, Dan needs to keep in mind that he will be required to take Required Minimum Distributions (RMDs) from some of his accounts in a few years.  Smart planning on this now can help consolidate his interests in charitable, tax, legacy, and estate planning.  This will likely require careful coordination among his accountant, estate planning attorney, insurance professionals, and ourselves.

© Copyright 2020 Maycomb Wealth Advisors - All Rights Reserved

Legal Disclosures and Privacy Policies   |   Disclaimer