The Whitcomb family has been successful over the years and has accumulated significant wealth. When they came to Hugh Johnson Advisors, Mr. and Mrs. Whitcomb had been married for 30 years and had raised three wonderful children who had all completed college and were in various stages of their careers.

Mr. and Mrs. Whitcomb did not express concern about meeting the expenses in their lives. They owned two homes, had no debt, and had assets totaling more than $20 million. Instead, they wanted to achieve other objectives: to consciously control the impact their wealth would have on their family and on their community and to develop a wealth strategy that would protect what they had and seek to grow assets for the benefit of future generations and for charitable purposes.

After thoroughly considering what the Whitcombs wanted for their children and other heirs and the legacy they wanted to leave in the form of gifts to nonprofits (in this case, their alma maters and a local hospital), Hugh Johnson Advisors developed and implemented a complete Wealth Plan.

First, working closely the family’s attorneys, Hugh Johnson Advisors instituted an estate plan that placed a portion of the family’s wealth in trusts designed to provide asset protection and asset management for the Whitcomb children and their children.

Second, the HJA Wealth Management team held a family meeting with the Whitcombs and their three children to ensure that ample communication between the generations clarified the wealth strategies employed.

Third, all of the family’s insurance holdings and other assets were reviewed and assessed.

Fourth, a Community Impact Plan was coordinated with the overall Wealth Plan and Family Impact Plan to carry out the wishes the Whitcombs expressed with regard to gifts to their alma maters and the hospital in the most tax-efficient manner.

Fifth, sophisticated software was employed to permit the aggregation of daily current information on all assets in a single location.

Finally, Hugh Johnson Advisors determined the portfolio composition that would optimize both the capital preservation priority for a portion of the family’s assets and the growth objective for the portion intended to be passed to succeeding generations.

Now in their sixth year as Hugh Johnson Advisors clients, the Whitcomb family and Hugh Johnson Advisors work closely together. All three children have entrusted their own personal assets to HJA’s management and interact regularly with the firm’s wealth advisors. Mr. and Mrs. Whitcomb have since increased the amount of time they spend carrying out their charitable intent. They also cherish the time they spend with their young grandchildren.

Hypothetical Example