Case Study 2: Facing the future on her own

Margaret Tinling is a 67 year old retiree currently living in a Western Canadian city. Six months ago, Margaret lost her husband Paul very suddenly. Paul and Margaret had planned for their retirement and were excited about the life they would be able to lead when Paul left work. For the past two years, the Tinlings have traveled extensively, taken up golf seriously and spent more time with their six grandchildren. In the blink of an eye, her life was changed forever. It has taken her six months to adjust, and her meeting with her Financial Planner was one of the steps that she was taking to regain control of her life.

Margaret is in good health and has a positive outlook for her future. Her issue, however, is that Paul had always managed the family's finances and she had really not paid much attention to the details. She has finally gathered up all of her papers and is ready to make sense of where she stands.

Her financial situation

Margaret received an insurance benefit of $250,000 when Paul died. To this point, she has simply left it in a money market account with her insurance agent after paying the immediate expenses. Margaret owns her own home, valued at roughly $300,000. In addition, she will receive a monthly pension benefit of $2,500 per month from her husband's plan.

Margaret's husband had a trading account with an advisor at a small investment firm; the advisor has been very persistent in meeting with her to talk to her about her insurance settlement.

Her Family

Margaret's life has always been centered on her family. She has two sons who live nearby and a daughter who lives in the U.S. Her grandchildren range in age from 2 to 17.

Her concerns about the future

• Do I really know enough to manage my own affairs?
• How should I go about redesigning my life so that I can start again?
• What do I do with my financial affairs today?
• Can I afford to give money to my family?

What needs to be thought out

Margaret has been through an intense psychological and emotional blow. Now she is looking to gain understanding and control over her finances.

The following will give you a sense of the types of considerations that would be addressed when Margaret meets with a BMO Investment Professional:

• What do her assets, her pension income and her tax situation look like? How much does she need to live and what demands on her assets may arise in the future?
• What is her level of financial knowledge? What are her views on investment and risk? How much is she willing to get involved in her own affairs? What kinds of things make her uncomfortable when it comes to saving or spending money?
• How does she want her new life to look like? How ready is she to start a new life without her husband? Will she stay in her home or perhaps move to something new?
• What needs do her family have that she may be able to help with? How much can she help, given her financial situation today? How much does she want to help?