How I Help a Client Save $100k in One Meeting
Posted August 12, 2013on:
Some might ask: what value is there in meeting regularly? There can be about $100k of value in it, let me tell ya!
Meeting regularly allows me to uncover hidden issues and potential opportunities, thereby helping my clients make smart financial decisions.
Take my recent trip to LA. My client started off by saying not much had changed, so there wasn’t much to talk about. So we settled into what he thought was casual chit-chat.
Little did he know that my chat-chatting was actually very purposeful. I soon discovered that my client’s mom, who lives in Taiwan, wants to donate her life savings, a total of $200k, to a Buddhist charity in the US and she wants my client to help her handle it.
She also does not want to give it all in one fell swoop. She wants to doll it out over a period of time to maximize the impact.
This is a lot of work on my client’s part. He will have to travel to Taiwan to get his mom’s power of attorney, translate it and notarize it so he can transfer her account to the US and manage it here.
Then he has to get a W8 form and a copy of his mom’s passport…yada yada yada… let’s just say it’s like untangling the Gordian knot.
Upon hearing this, I made a suggestion: his mom can give him the money, and my client can then put the money into a donor advised fund (DAF). This is the financial equivalent of Alexander the Great slicing through the Gordian knot with a sword. It achieves the following:
1. There is no more great Grecian knot to untangle.
2. He can write off the donation. Since he lives in California and is in the highest tax bracket, he is going to save $100k in combined state and federal income taxes!
3. The money in the DAF can grow tax free and the timing of giving it to the actual charity is entirely up to him and his mother.
See, I just helped him solve a problem and ended up saving him $100k in the process. That’s the value I bring to the table. My goal is to keep my clients wealthy by helping them make smart financial decisions every step of the way. Aren’t you worth it?