Dave & Laura Wilson

Business Owners Nearing Retirement

Here’s What Happened

Where This Left Them

After a year, their concerns with their current broker left them unsettled about their investments and retirement.

In addition to the confusion around what they owned and why, the Wilson’s realized nearly all their gains were taxed at their ordinary income tax rate of 33%, instead of the preferred dividend rate of 15%. Additionally, they were paying a professional money manager fee on top of their 1% investment advisor fee to the broker.

What We Did to Help

We met with the Wilson family and after discussing their concerns, we implemented the following strategies: 

• Introduced our evidence-based investing approach: Using a focus on data and evidence to make intelligent, efficient investment decisions. We took the time to answer all of Dave and Laura’s questions, which left the Wilson family feeling more comfortable with their retirement.
• Implemented a tax efficient investment strategy: Lowering the portfolio turnover. This further reduced their overall taxes.
• Presented educational materials: Designed to help them better understand financial markets, basic terminology and behavioral economics.
• Addressed their accounting needs: Discussing those concerns that had arisen from the family business being sold.

How the Wilson’s Benefitted From Our Help

• Lowered tax obligation: By moving investments to our rules-based investment models. This move created a significant tax savings with a move from short-term capital gains that are taxed at 33% to the long-term capital gains tax rate of 15%.
• Lowered investment fees: By moving from high-fee, active mutual funds to low-cost indices. The significantly decreased fees resulted in the Wilson’s keeping more of their investment gains.
• Personalized, proactive communication: By taking the time to increase the Wilson’s understanding and comfort with key investment principles, Dave and Laura have greater comfort with their portfolio and overall financial plan. The Wilson’s know their money is not entirely invested in stocks and they have other investments to help meet their current spending needs.

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Joe & Mary Dawson

Young Business Owners Growing Their Business

Here’s What Happened

Joe and Mary Dawson are busy raising their young family, leaving them limited time to worry about anything else between work and family. The Dawson’s knew they needed help with their finances because they didn’t have the time or expertise to address all of their concerns – especially with Mary operating her own small business. To help simplify and coordinate their financial life, they were looking for a “point guard” advisor to oversee their entire personal and business net worth.

What We Did To Help

The Dawson’s turned to Delta Wealth for the full-suite of services they knew they needed – financial planning, investment management and tax services. While their other brokers could invest their money, they had additional needs with tax and real estate advisory services. Our team worked with Joe and Mary to identify and evaluate different real estate opportunities to complement their overall net worth.

In addition, we implemented the following strategies:

• Consolidated investment portfolios: resulting in an efficient and simplified investment strategy to achieve the Dawson’s short and long-term financial goals, lower investment fees and improve tax efficiency.
• Built proactive tax planning strategies for each calendar year: in an effort to minimize tax liabilities.
• Reviewed current company benefits and retirement plans: for both Joe and Mary to ensure the maximization of their collective benefits and avoid paying for duplicate benefits.
• Repositioned assets to meet short-term family goals: including house renovation and anniversary trip.
• Met with vetted real estate professionals: to identify commercial and residential real estate opportunities for income producing properties.

How the Dawson's Benefitted From Our Help

• Joe and Mary developed a written plan for their future: This document has an accurate snapshot of their finances and clearly-written action items for their future. This plan identifies how they will pay for the kids’ college tuition, invest in opportunities outside of stocks and bonds, stay on track for retirement, and identify opportunities to grow their net worth.
• Efficiently utilize employee benefits: On our recommendation, they maximized Joe’s 401(k) plan and allowed Mary’s company to avoid the expenses of offering 401(k) plan to employees. Mary’s company was able to use the savings to make a critical hire to expand the company.
• Reduced investment costs: The Dawsons identified and eliminated duplicate portfolio holdings, lowered costs and increased tax efficiency across the different portfolios;
• Introduced real estate investment opportunities: Together we analyzed and recommended multiple real estate opportunities that fit the Dawson’s long-term goals of owning stable income properties. These investments diversified them away from their concentrated holdings in industrial commercial properties.

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Jenni and Paul Backland

Busy Professionals

Here’s What Happened

What We Did To Help

The Backlands became interested in working with Delta Wealth because of DWA’s focus on their entire net worth and financial planning expertise. Jenni and Paul need help outside of managing their stocks and bonds, and they wanted a company that could both recommend and execute action items to improve their finances.

Delta Wealth implemented the following:

• Formulated a plan to prioritize which student loans to pay off first to minimize interest payments. DWA worked with Jenni to refinance select student loans into lower interest loans.
• Identified an attractive mortgage option for the Backland’s new home purchase which freed up cash to pay down high-interest student debt.
• Focused on their near-term goal of starting a family. DWA discussed their state’s 529 rules and benefits and identified an optimal funding strategy for the Backland’s future children since they would like to pay for their college tuition.
• Guided Jenni and Paul through the allocation and investment choices for their company 401(k)s including a proactive review of investments and plan options.

How the Backland's Benefitted From Our Help

• Paul and Jenni understood DWA’s transparent fee structure. The Backlands appreciate the transparent net worth fee of 0.50% charged by DWA. They were not interested in working with a salesman who earned commissions on selling products.
• They were able to put a plan in place. They have peace of mind that they finally have a detailed financial plan that addresses both their short-term goals of paying off their student loans and buying a home and longer-term items such as insurance, retirement planning and tuition for future children.
• They used Delta Wealth’s client portal to track all their investments. Paul and Jenni utilized DWA’s app and client portal which allows them to review their financial plan, modify budgets, identify to-do items and track their investments in one location.
• They were finally able to benefit from expert money management. Both 401(k)s are actively managed by investment professionals at DWA. This management includes analysis of available funds and active rebalancing.
• They have a team of experts behind them. Most importantly, they have confidence in working with a team of experts that can grow their net worth through investments, financial planning and tax planning.

They have a team of experts behind them: Most importantly, they have confidence in working with a team of experts that can grow their net worth through investments, financial planning and tax planning.

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