WELCOME TO SCENARIO TWO

If you are here that means that your training facilitator has directed your team to work through this exciting and challenging scenario. This is an actual, real life scenario where only the names have been changed to protect the actual people.

Going through the scenario as you will see, is no easy task, not a walk in the park. You and your team will be challenged to break your knowledge barrier and go beyond your current investment knowledge to recommend a solid investment portfolio to your client based on sound, researched investment knowledge.

Many Financial Planners such as yourself have worked through this scenario and have been able to effectively apply the skills and knowledge they have learned through this exercise to recommend greatly enhanced investment portfolios to their clients.

The team will work as though they have been assigned this client scenario in their own corporate office. You will work collaboratively as an investment team with the same tools that are available to you in your own offices. No restrictions on what you can use or where you can go, the sky is the limit.

CHALLENGE TO THE TEAM MEMBERS

To work collaboratively to provide the a best fit investment portfolio for the client based on the analysis that the team conducts.

ALLOTTED TIME FRAME

Your team will be provided 4 days during your training program to work on the scenario. On the last day at 3:00, a client portfolio should be submitted to your training facilitator.

James Ganye, owns and operates multiple small businesses and franchises in the Austin area. He has just sold one of his businesses for $3.5 million and will receive the proceeds of the sale within seven days.

He called on his long time financial advisor, Charllote Stallworth, from Adaas, Ackers and Archamboe associates, to help him invest the money that will be coming in.

James and Charllote met at a local restaurant, and the meeting went as follows:

James: To be honest I am 55, and I am tired, I am looking to retire in the next five years, how can I secure financial freedom in case something happens to me where I can't run all my businesses, or if my businesses start losing. I have worked long and hard and I just can't handle too much risk anymore. I am ready to settle down and maybe get married.

As you know I am also involved in the community church and I would also like to help them out as much as I can, because the Pastor told me they have a tax free gifting program, which I would like to look into.

The life insurance I have is through one of my businesses, I am lucky I got it early on, because I just went through prostate cancer treatment and the doctor said I should be fine. But I need to check with my accountant to see if that policy is tied to a buy sell agreement. I will let you know.

Charllote asks James several questions while he proceeds.

James: You are asking very detailed questions, Charllote, I did not know that I had so many things to think about. There are a lot of details we need to go through. I have multiple retirement accounts, IRA's, 401(k)'s, and a Simplified Employee Pension plan, between them all I think there is about are worth about $750,000, they have been sitting there for a long time, I have not checked how they are doing.

What do you think I should do with my business? I can't sell them all at once, and I also need to have valued to see how much I can from selling them. Do you have any expert I can talk to about business valuation? Now as you know I don't want to get hit by Uncle Sam with a huge tax bill. We are going to have to see what to do.

Charllote: I think we should focus on how to invest the first $3.5 million first, but build an overall plan that will accomplish your goals.

Charlotte informs James know that coming up with a diversified, risk averse investment portfolio in the next few days was not as easy as it might sound. She let James know that she will call on the advice of her associates at the firm and they will need to contact throughout the week to get additional information.

James agreed and gave Charllote the times when he will be available.

Charllote left the meeting with the challenge of making sense out of all what James had talked about, and come up with both a short term investment plan and a long term investment plan.

Sounds interesting, right ?

well now you are in Charlotte's shoes and you have to perform as a financial planner in a an authentic, ill-structured domain and problem.

Collaborate, explore your options, your resources, your experts, put it together and come up with your recommendations for James Ganye.