Two years ago I referred a retired couple who had come to me for estate planning to financial advisor Mario Govic, who is now out of Sarasota, Florida. The couple had about $3 million invested in more than 16 different financial institutions, qualified and nonqualified accounts, with ownership and beneficiary designations twisted and turned, and a portfolio of holdings which made no sense at all. Their RMD’s were causing a severely negative tax hit, and positions were bought and sold without regard to basis and tax liabilities. After a month of intensive work, Mario consolidated their holdings into a handful of annuities with various GMIB and GMWB riders and non-qualified accounts, and in general straightened the client’s nightmare portfolio into a well-managed and tax efficient retirement plan.
As it turns out, the positions which the clients held before meeting with Mario Govic lost almost half their value in the ensuing two years. The clients also withdrew $250,000 to purchase another retirement home. After two years, considering the decline of the market and income taxes saved due to the repositioning and deferral of RMDs, and the annuity guarantees, AND after the clients withdrew a quarter of a million dollars, the dollar value of their portfolio today remains almost exactly where it was when I introduced the clients to advisor Mario Govic. By my calculations, this advisor’s work prevented a one million dollar decline in my client’s portfolio over a two year period. Outstanding work!