Case Studies Archives | CD Wealth Management

Main wage earner passes away, now what?

THE SITUATION

Norma’s husband passed away suddenly leaving her with bills, a mortgage, and a lack of financial education to plan for her and her children’s futures.

THE SOLUTION

Norma was referred by a friend to Ilona Friedman and her team at CD Wealth Management. At first, Norma was shell-shocked and she found it difficult to even leave the house. Ilona met with her at Norma’s home taking time to listen to stories about her late husband and what a wonderful man and provider he was. Ilona and her team helped her get organized, going through the bills and looking through insurance policies, financial account statements, and loan documents. Because her husband had a life insurance policy, Ilona helped Norma realize that as a woman in her 50s, she would have enough to allow her to pay off debt, keep the house, provide for her children’s college education, and plan for her early retirement.

In the wake of one of the most difficult chapters of her life, her relationship with Ilona and the CD Wealth Management team is one of the bright spots. Her meetings with Ilona have even become a family affair. Norma now brings her kids to her meetings to help them get a financial education.

Norma is a real client. Her name has been changed to protect her privacy.

Helping a conservative client

THE SITUATION

Dennis owned a small family business and earned a modest income. As he approached his retirement years, he worried have enough to provide for a comfortable retirement. He has always been very conservative with his money and suspicious of seeking counsel from a financial management company.

THE SOLUTION

One of Dennis’s friends recommended CD Wealth Management as a group of experts he could trust. Andy Dropkin and his team began meeting regularly with Dennis to help him get an overview of his financial picture. Respecting his conservative approach to money, they recommended and helped him buy individual bonds. At the time, Dennis had his money invested with another financial services company. Despite that, Andy reviewed Dennis’s portfolio and recommended changes to optimize his assets over his remaining working years.

Andy and the CD Wealth Management team developed a solid working relationship that has lasted more than a decade. In the years working with Dennis, Andy helped Dennis diversify his portfolio and helped him to invest his proceeds after the sale of his business.

Now Dennis enjoys his retirement knowing his future is secure with a large portion of his money in tax free bonds and the remainder in equities. Dennis is taking care of his wife and set aside money for his grandchildren’s education. He even has recommended Andy and the CD Wealth Management team to his estate planning attorney who has been so impressed, that he recommends CD Wealth Management to his clients.

Dennis is a real client. His name has been changed to protect his privacy.

Finding the way forward

THE SITUATION

Cynthia was referred by a friend to CD Wealth Management after her husband unexpectedly passed away. She was in her mid-50s, wasn’t working, and didn’t have a good understanding of her financial situation. Her husband had money in many different institutions and insurance firms.

THE SOLUTION

Andy Dropkin of CD Wealth Management began meeting regularly with Cynthia. At first their meetings were helpful to allow Cynthia to process her grief and to help her with the immediate financial needs of her situation. Andy learned that Cynthia had been approached by several financial management companies to try to “sell” her on programs, products, and plans for her benefit and her large single stock position. Cynthia explained that she felt that Andy and the CD Wealth Management team was different because they took the time to just listen to her and make sure her needs were being met instead of jumping in right away to manage her money.

In the months following her husband’s death, Cynthia faced an ugly legal family battle over the estate proceeds. Once again, Andy and the CD Wealth Management team worked with Cynthia and her attorney to protect her assets and help her get through the ordeal.

In the years since working with Andy and his team, Cynthia’s portfolio has blossomed. Her large single stock position went through a merger many years later. Andy helped her set up a donor advised fund to reduce some of the tax impact from the stock merger. Now to her delight, she is able to support her church and create a scholarship at a local university for students in need.

Cynthia used to be skittish talking about topics related to finances and skeptical of people who shared their advice on money matters. Now, thanks to Andy and his team, she relies on CD Wealth Management as a trusted advisor and family friend.

Cynthia is a real client. Her name has been changed to protect her privacy.

Preparing for the Future with Straight Talk and Careful Planning

THE SITUATION

The Johnsons are a wealthy couple in their 80s living in Dallas. They have a significant estate and want a strategic plan in place for how to make generous donations to various charities anonymously. They also have a grown daughter married to a man whom the Johnsons do not fully trust. They want to ensure that their daughter and grandchildren are cared for with money that is specifically designated for them alone.

THE SOLUTION

As longtime clients of CD Wealth Management, Scott Cohen and his team have worked closely with the Johnsons for many years to protect and grow their portfolio. When the Johnsons indicated they were ready to talk about legacy planning, Scott set up a series of family meetings with the Johnsons and their daughter. He encouraged the Johnsons to speak openly about their desire to care for their daughter and her children and their concerns about their son-in-law. Through the meetings, the Johnsons and their daughter were able to begin to heal a rift that had been growing. Additionally Scott helped them fund trusts for each of their grandchildren and named their daughter as trustee.

Scott and his team also worked with the Johnson’s attorneys to create a foundation dedicated to providing anonymous donations to various Dallas-based charities. The Johnsons have the confidence of knowing their wealth is protecting their daughter and her children and blessing thousands through their generous anonymous gifts to landmark Dallas charitable institutions.

The Johnsons are real clients. Their family name has been changed to protect their privacy.

The Golden Handcuffs

THE SITUATION

A family owned business in Dallas had trouble retaining their top level executives. While they have been paying competitive salaries and offer excellent benefits and bonuses, other companies have been successful at poaching their leaders. The loss of brain trust has damaged the company’s profitability and made it challenging to recruit new executives.

THE SOLUTION

The company was referred to Scott Cohen and the Delayed Executive Benefits team at CD Wealth Management. Scott initiated an exhaustive discovery of the company’s financial history and crafted a comprehensive program the company could offer their existing C-level executives. In addition to multi-year guaranteed payouts the company was protected by clauses that ensured the executives would work hard for their performance incentives and abide by the codes of personal conduct. After implementing their custom “golden handcuff” plan, their retention of executives has grown from 50% to 90% in the 10 years since the plan was launched. The company appreciates that Scott and his team provides the day-to-day servicing of the plan and credits CD Wealth Management for saving them valuable resources and growing profitability.

The company and their situation is real. We have not provided the company name to protect the privacy of the company and the individuals involved in the company’s delayed benefits program.

Enjoying the Blessings of a Multigenerational Legacy

THE SITUATION

Robert has worked a job since he was a teenager. For more than 50 years, he has devoted himself to his wife and family and building a successful business. Robert has decided that it is finally time to sell the business and spend more time traveling with his wife to visit their children and grandchildren. More importantly, he wants to make certain that the proceeds from the sale of his business will comfortably support their retirement and leave a financial legacy for his family that will provide college for his grandchildren and sizable donations to the charities he and his wife support.

THE SOLUTION

As a client of CD Wealth Management for more than 20 years, Robert meets regularly with Ilona Friedman and her team to go over his business and personal finances ensuring that everything is on track to help and his wife enjoy a portion of his income tax-free in their retirement. Now that he is ready to sell his business, Ilona has been meeting more frequently with Robert and his wife to create a game-plan for the transfer of their wealth with their children and grandchildren. The team has met with Robert’s attorney and CPA to finalize a plan for the sale of the business. They also have created a plan to distribute donations to their favorite non-profits in a thoughtful way that aligns with both the charitable and family legacy. Robert sees his role as patriarch of the family as financially protecting his family and enabling them to enjoy the blessings of the success he has built over his lifetime. His decades-long relationship with CD Wealth Management has given him the confidence that his multi-generational legacy is secure.

Robert is a real client and his story is true. We have changed his name to protect his privacy.

Life After Divorce

THE SITUATION

Sheryl has four school-aged kids and was married to a successful CEO of a Texas-based company. After evidence of her husband’s infidelity was uncovered, Sheryl began divorce proceedings. What followed was a very nasty, protracted, and painful divorce. Immediately after the divorce was finalized, Sheryl’s ex-husband lost his job, making alimony and child support payments uncertain. Broken and anxious about her financial situation, a friend recommended she talk to the team at CD Wealth Management.

THE SOLUTION

Immediately, Ilona Friedman and the CD Wealth Management team met with Sheryl to listen to her story and provide moral support. Sheryl was able to discuss her fears and concerns about providing for her children and her immediate and short-term needs. Ilona and the CD Wealth Management team put together a plan that focused on helping Sheryl meet her immediate financial obligations including paying attorneys fees, ongoing bills, and now taking care of the children as a single mom. Meeting regularly, Ilona worked with Sheryl to help her structure a livable budget with income from Sheryl’s new job and spousal support, child support, and investments.

Today, Sheryl has a strong financial strategy that includes a plan for her retirement when she is in her 60s. As a single mother, she is successfully providing for her family and even putting her oldest child through college. As she looks back now Sheryl describes that time as when the light broke through the darkness of the most difficult time of her life. She credits Ilona and the CD Wealth Management team as being a “lifesaver” to her and her children at a time when she was desperate for financial clarity, support, and counsel.

Sheryl is a real client and her story is true. We have changed her name to protect her privacy.

Living a Dream

THE SITUATION

Our clients, Tom and Sharon Mansfield, are both successful executives who had grown tired of living in the “rat race” but were not sure what they could do about it. Their jobs allowed them to work from anywhere, but living somewhere outside of the United States seemed like a long shot. They were concerned that their three school-aged children would struggle to finish their education in another country.

THE SOLUTION

During one of the quarterly client meetings with Tom and Sharon, Scott Cohen and the CD Wealth Management team could sense their unhappiness and began a process of discovery about how to achieve their dream of living in a “tiny European village.” Scott helped them look at the the overall health of their financial landscape and showed them that not only could they afford to live in a European country, they could thrive there and still be connected to life in the United States. Together they created a plan to make sure that their three school-aged children would complete their elementary and secondary education from an English language school and created a strategic plan for their future college education. Scott and the CD Wealth Management team also helped Tom and Sharon plan for regular extended visits to the United States to help them maintain their relationships with friends and family.

For Tom and Sharon, their decades-long partnership with the CD Wealth Management team has helped them achieve the freedom to live their dreams and plan for their children’s success.

Tom and Sharon are real clients and their story is true. We have changed their names to protect their privacy.