1. What do you think of Brad and Barbara's seeking help for Brad's parents?
2. What prompted Richard to seek assistance? Was it only because of Brad and Barbara?
3. What type of financial plan seems appropriate for Richard and Monica?
4. Why do you think Monica didn't react more negatively to the financial news?
5. What might the loss tell you about Richard?
6. Do you think I should have met privately with Richard? Why?
7. Complete the introductory section of the financial plan?
Brad and Barbara arranged to come in to see me. They were both young college graduates and arrived wearing jeans and T-shirts. I soon found out they were recently married and lived with Brad's parents, Richard and Monica, in the basement of the their house. Brad and Barbara paid for all of their own expenses. His parents got along extremely well with Barbara and treated her as one of their children.
Recently the relationship between them had been deteriorating. When they weren't arguing, they were whispering to each other. Both Brad and Barbara had overheard some of their conversations, which seemed to be about money and investing. Brad was very close to his uncle Tim and asked his advice about the situation. He suggested that Brad and Barbara recommend that their parents see a financial planner.
Tim thought Brad and Barbara should meet the planner prior to discussing their recommendation with their parents. He had one advisor in mind. Tim said that Brad's parents were both educated and unusually open in their discussions. Brad and Barbara should relay to the parents their concerns, including the fact that the parents' problems were beginning to affect their own lives. Tim said that Brad and Barbara should suggest handling the financial concerns as a family problem that could be worked out together, one that could bring the four of them closer. He was sure they would respond favorably.
In fact the uncle was correct. My meeting with Brad and Barbara was very constructive, and I gained insight into the parents. Thereafter, Richard, the father, called and made an appointment. Interestingly, he mentioned that Brad and Barbara had some financial issues themselves. The detailed planning was to be done for the parents, but the engagement also would cover any planning that Brad and Barbara wanted done.
Richard walked tentatively into my office early one evening. He glanced around nervously and closed the door behind him. I could sense that there was no need for small talk. He wanted to tell me his story. Richard, age 58, told me he had grown up in a small town and had married the high-school prom queen. He described Monica as a sweet and caring wife, as beautiful at 54 as she was at 18. He indicated that she would be devastated by his news. He became choked up, and we paused for a minute.
The news was that he had lost $200,000 in a speculative investment. He mentioned that his $550,000 in retirement assets was down to a current figure of $350,000. He asked me to help them without telling his wife of the loss. I told him that if I took an assignment that involved two people, there would have to be honesty all around. He mentioned again that he thought she would be devastated. My response was that even if we hid it, the true story would come out eventually anyway. I thought that he and Monica should come in next and we would start the process.