Maximizing Income While Minimizing Risk
The death of her husband, Daniel, took Eleanor by surprise. As an executive at an investment management firm, Dan had always overseen the couple’s investments. As a result, Eleanor had never paid close attention to their finances or wealth transfer plans. To complicate matters, much of Eleanor’s $3 million net worth was concentrated in the stock of her late husband’s firm.
Eleanor turned to SunTrust Private Wealth Management for advice on making sound financial decisions during a difficult time. She chose to work with SunTrust because the SunTrust Advisor seemed genuinely interested in helping her make sense of her investments rather than selling her some new product. Eleanor’s primary goal was to maximize her income without significantly affecting her children’s inheritance. And, if possible, she also wanted to help support her college alma mater.
Eleanor’s client advisor first recommended she purchase an immediate life annuity.1 This would meet most of Eleanor’s income requirements, while allowing the balance to be invested in an equity portfolio earmarked for her children’s inheritance. To help minimize portfolio volatility, a SunTrust portfolio manager worked with Eleanor and her tax accountant to implement a staged sale of stocks within Eleanor’s portfolio.
Finally, SunTrust worked with Eleanor to implement a charitable gift annuity with her alma mater, a wealth transfer strategy that provides Eleanor with additional income and secures a legacy for her university.