The Case

Bob is age 65, single, and just retired. He had a $1,200,000 IRA primarily invested in the stock market and had $20,000 in the bank. He had no pension but would receive Social Security of $2,500 per month. He knew he needed more liquid assets in case of emergencies and large purchases, but was not happy keeping money in the bank at such low interest rates. To increase his liquidity his broker advised him to put more of his money in a tax-free municipal bond fund. A 2nd Opinion revealed he needed a minimum of $100,000 in available reserves. It also uncovered that the municipal bond fund recommended by his broker was not a “safe” place to keep his liquid assets because if interest rates increased the bond fund could lose considerable principal. His 2nd Opinion allowed him to increase his liquidity substantially without having to give up the opportunity for these assets to grow by using a combination of FDIC CD’s with high interest potential and a managed portfolio with a Stop Loss provision.

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^{** Case studies are for illustrative purposes only and should not be construed as a testimonial. They do not represent the experience of any specific advisory client. Each client’s situation is different, and goals may not always be achieved. None of the persons photographed is a current or former client of True Peace Financial. These photos should not be construed as an endorsement or testimonial from them. Reference full disclosure at the end.}