For the last three generations, Bob, 64, and his family have operated a small local business. Bob has been President for over 25 years and for the last five years has worked with his two sons on transitioning the business. Bob expects to gradually phase out of the business over the next three years. Bob and Joan have been excellent savers and are now looking forward to retirement, but they are unsure about the following:

  1. How much can we spend each year in retirement while preserving and growing our wealth for our children and grandchildren?
  2. Will we be able to fund college education accounts for our three grandchildren ages three, five, and eight?
  3. What are the taxable implications for distributions from our investment accounts? How will this impact the sustainability of our annual withdrawals?

How did Beese Fulmer help?

We started by listening to Bob and Joan’s vision for their retirement. We discussed their desire to help fund their grandchildren’s college education and their hope to leave an estate for their heirs. They wondered how distributions would be taxed and how this would impact their long-term goals. In our initial conversation, we completed a Wealth Profile together and learned their complete financial picture and attitudes towards investing. Over the next several meetings, we were able to accomplish the following:

  1. First, we completed an asset summary and cash flow analysis, which listed all assets, liabilities, associated cash flows, and other sources of income, such as social security and rental property income. We were then able to determine how much of their current annual spending would need to be replaced by savings and investable assets.
  2. Based on this information, and through the completion of the Wealth Profile, we were able to determine several different asset-allocation options which we felt were appropriate for their risk tolerance. Our analysis suggested that any of the proposed asset-allocation ranges would sustain their wealth until Joan reached age 100.
  3. Next, we estimated how much each grandchild would need for college based on current private and public school tuition costs and different levels of inflation. After determining an approximate annual contribution, we analyzed whether Bob and Joan could conservatively
    afford to make annual contributions to their grandchildren’s college education accounts.
  4. Since Bob and Joan’s asset allocation included a mixture of stocks and bonds, we reviewed the projected tax-free income from their municipal bond allocation and determined that this would represent approximately 40% of their annual spending. With the remainder of income from dividends or capital gains, we reviewed the mixture of stocks and bonds between tax-free and taxable accounts and determined which account structures would be most beneficial in reducing their potential tax liability. Since our investment philosophy revolves around long-term, tax-efficient investing, we were able to manage their investment portfolio more efficiently than the mutual funds previously owned.


The Case Study is hypothetical in nature, for illustrative purposes only, and should not be considered investment advice. The information is intended to illustrate services available at Beese Fulmer Private Wealth Management and is not intended as a testimonial or endorsement of Beese Fulmer Private Wealth Management as a registered investment advisor. The Case Study does not necessarily represent the experiences of other clients, does not reflect actual investment results, nor is it a guarantee of future results. The investment strategies discussed are not appropriate for every investor and take into consideration a client’s investment objectives and financial needs. Clients should review with their Beese Fulmer Private Wealth Management Portfolio Manager the terms, conditions, and risks involved with specific
services and products.