An Expert Assessment Is a Great Way to Begin Looking Toward Your Future
Even Google Maps Won’t Determine Where You Are
There are two observations that The Ross Companies has about many clients who seek our services: 1) they know they have a need but may not be able to articulate it; 2) they may not understand how to best approach the problem.
This is why The Ross Companies will conduct an expert assessment for clients who are coming to us by referral or organically. We can provide a comprehensive analysis of what is in place, how it is structured, and offer a detailed plan explaining how and why it needs to be adjusted. This is a service we can do either with an agreement that we will broker insurance needs or as work for hire.
This is important for a number of reasons, but the number-one reason is that wealthy and affluent people are generally achievers who have very busy lives. Spending time focusing on building a picture of the future and creating the kind of structures that can lead to better situations tomorrow is one of the processes where The Ross Companies has had a lot of success.
There is a lot of different type of troubleshooting we do for clients, but this is an area where understanding and looking at insurance is something that we believe will resonate with potential clients. Many people buy an insurance policy when their college friend or a relative is selling it, and they don’t really think about these needs going forward. It’s a “set it and forget it” mentality that can be problematic.
Our fictional client, Mr. Jones, was a rising star at a large corporation when, at 27, a college friend convinced him it was a good idea to have a life insurance policy. He was single, had $25,000 in college loans, and really no other assets. He didn’t have people counting on his income, and he was focused on his career. He didn’t think he needed it, but he signed up for a $100,000 term life policy to make his friend look good.
Today, Mr. Jones is the chief financial officer for that company. He’s 41, married, with two children, and a sizeable mortgage. His kids are in private school. He has savings, stocks and bonds, and stock options with the company where he’s employed. His assets total more than $4 million. An insurance policy valued at one year’s salary is part of his compensation package, and he still has that $100,000 term life policy, which will run out in six years.
Mr. Jones has a need for more than a life insurance update. He is in line to become CEO and join the company’s board in a few years. Then, he will be worth much more. Creating the right kind of trusts, creating tax advantages, planning for retirement, and planning gifts for his children are things that The Ross Companies would begin working on. There are a lot of creative ways to go about doing this, and we would begin by doing a deep dive into Mr. Jones’ assets and expectations. We would structure his financial future not only with the idea of helping his family, but also his church, which is a very important part of the Jones family’s life.
If we thought that Mr. Jones could be affected by the federal estate tax, we would have to plan for that. At this time, he and his family aren’t, but it could be in their future. For 2024, the federal estate tax exemption of $13.61 million for an individual or $27.22 million for a couple, and this is based on a gross estate before any allowance or deductions. Building a plan that can account for this while providing the flexibility to benefit the family in other ways if the estate tax is no longer an obstacle is one of the considerations The Ross Companies will plan.
Because of our vast experience, The Ross Companies has deep knowledge of the many different tools and structures that are useful to clients who are affluent, wealthy or very wealthy. Creating that plan for the future that can protect a family from estate taxes, create plans for succession or buy outs, or preserve productive assets is what we do, and do very well.
For more than 90 years, The Ross Companies has been advising clients on how to resolve complex financial problems using insurance and other tools. These problems can include estate taxes, succession, buy outs, preservation of assets, or executive compensation. Our long history informs our thinking, and while many situations may be similar, we have learned well that each solution must be unique to the circumstances and individuals being served.