Composite R.M. Davis Client Stories of Complex Challenges & Opportunities Resolved

Supporting a Child's or Grandchild's Education

With the spiraling costs of higher education, funding a college savings plan can be the gift of a lifetime from parents to a child—or grandparents to both a grandchild and his or her parents. We make the complicated process and decisions simple.

John and Elaine were ecstatic to show us photos of their new grandchild during a client visit. They immediately knew they wanted to begin a college fund for the child, but were unsure how to go about it or how much a college education would cost 18+ years out. We recommended an option from an annual list of our favorite state plans based on the analysis we perform annually of 529 College Savings Plans. We examine the funds in which the plans invest, fees and expenses, and ease of administration.

Once John and Elaine approved a plan, we provided them the paperwork and guided them through filling it out. We helped them determine who should “own” the account (one of them, as grandparent, or their son, the child’s dad), who should be the successor owner, and how best to fund it (monthly or all at once at the outset).

To aid in making these decisions, we provided them with our financial plan outlining future expected costs of college (in-state versus out-of-state) and how much should be added and invested to meet the withdrawal needs to secure the child’s future once she graduates high school.

"When Can I Retire?"

After years of caring for her elderly mom, a daughter’s financial picture changes upon the parent’s passing. But how does she know when it’s okay to retire? Read how our financial planning process helps answer the question.

After being called upon to oversee the financial affairs of her mom, who was living in nursing care, Susan didn’t feel she was getting objective and transparent advice from her mom’s advisor. She expressed this concern to her accountant, who referred the family to R.M. Davis.

After her mom passed away, Susan hoped she might retire in the not-too-distant future, and asked us to help her with financial planning based on her own retirement savings and her inheritance.

After extensive conversation and review of her portfolio, our planning analysis showed a high probability of success in meeting her needs after retiring. Our assurance gave Susan the confidence to leave her job and took a great weight off her shoulders after years of caring for her mom while working full time.

Maximizing the Benefits You Already Have

Keeping track of old insurance policies can be daunting, and their benefits are not top-of-mind when incidents occur. Knowing what to look for and the questions to ask is second nature to us.

In 1982, a group of doctors retained us to manage their retirement plan. In early 2005, George, one of the lead doctors, began to slip cognitively; he was experiencing early onset Alzheimer’s. Realizing his career practicing medicine was ending, he placed himself in the comforting care of his wife, Laura, until it was finally time for professional help. George became institutionalized until his death.

In working with Laura and her attorney to settle George’s estate, our Wealth Management team uncovered some long-term disability insurance policies. Upon perusal, it was apparent that George’s lengthy, debilitating illness qualified for insurance payments, of which Laura was unaware, and which George had probably forgotten. We quickly went to work, contacting the insurance company and, with documentation and medical records provided by Laura, were able to recover more than $200,000 of unpaid long-term disability payments for her.

Fixing Underinsurance Before It Becomes a Burning Issue

Having the proper level of insurance on a home is one of those critical details that can easily be overlooked, until an event precipitates a claim. Fortunately, details are something that we take seriously at R.M. Davis.

Sadie and Chet grew up in northern Maine, earned a good living, saved money judiciously, raised and educated four children, and were involved citizens in their community. In early 1990, a friend of theirs recommended they speak with us to start planning for their retirement. As time went by, we introduced Sadie and Chet to a broader discussion of wealth management strategies, including a review of their estate plan, insurances, and gifting.

During this process, we discovered their home was woefully underinsured, mainly because they had overlooked adjusting their policy when they renovated several years earlier. Drawing on our large network of third-party professionals in Maine, New Hampshire and beyond, we introduced Sadie and Chet to an insurance carrier who could provide a policy with more favorable provisions—most notably insuring for “replacement value,” whereby the insurance carrier would pay the full cost of replacement even if it exceeded the policy limit.

A year later, on Memorial Day, we received a call from Chet, standing in the middle of the rubble of their home, which had burned to the ground and was still smoking. Even though Chet was still in shock, he took the time to express his deep appreciation for our recommendation to upgrade the insurance coverage of his home.

Sadie and Chet received prompt, full replacement-value remuneration for the loss of their home, and have since built a beautiful new home on the same site. If they had retained their previous policy, they would have received less than half the cost of replacement.

Managing Day-to-Day Financial Affairs

R.M. Davis’s Personal Affairs Administrator substantially enhanced an elderly couple’s peace of mind— and their relationship of trust and caring with the firm.

Long-time clients, Ed and Marian, now elderly, were concerned that they had inadvertently neglected to pay some bills, and embarrassed to admit they were losing track of their finances. During a visit over tea at their home, we introduced them to our Personal Affairs Administrator. Ed and Marian’s comfort level grew as they chatted with her about how she might be able to assist them with their day-to-day finances.

Our Personal Affairs Administrator now visits Ed and Marian monthly. Among other things, she organizes and pays their bills electronically, collects and keeps track of tax documents for their tax preparer, and speaks to their insurance agents as needed. She is available, per the couple’s request, to join family meetings in person when adult children visit New Hampshire on vacation, or via conference or video call on schedules that work for family members who are far-flung across the country.

The relationship of trust and caring with our firm was enhanced by this experience, and continues to grow and expand in ways that benefit Ed and Marian at this time in their lives.

Preserving the Legacy of a Family Vacation Home

A family vacation home is a unique asset, with much more than financial value, but ownership gets more complicated with each generation. Read how we helped a client create a legacy by passing a lakefront home on to children and future generations.

Our client, James, recognized that his family’s lakefront vacation home is a unique asset, with much more than financial value: it is also a cherished gathering place filled with shared memories. He asked us how best to create a legacy by passing it on to his children and future generations.

We explained that what may seem like the simplest plan—to leave the property equally to his children in his will—may not be so. Managing a property with multiple owners is complicated, and can get messy without a proper structure in place to govern decisions and behavior.

We advised James that transferring the property to a Limited Liability Company (LLC), owned by the family members, was the best alternative. We connected James and his wife, Linda, to an attorney specializing in legacy building and estate planning.

The attorney helped James accomplish his goal: to gain peace of mind knowing that future generations will enjoy the property, making their own memories, for years to come.

life stories: The R.M. Davis Experience