How We Help
At Martinelli Discenza Investment Counsel, we spend a good part of our time seeking and tracking good long-term investment ideas. This includes evaluating the risks, which are inherent in every investment, and seeking methods to reduce or offset these risks. Historically, our efforts have been reflected in generally superior investment results, but what our clients see and actually experience is perhaps best illustrated by the following six Case Studies.
Even though the core of our business is “investing,” we find many client requirements arise at the point where legal and investment issues converge. As a result, our legal backgrounds have been quite helpful in the delivery of services to our clients.
For the sake of privacy, the names and ages of the people in each Case Study have been altered. The client problems addressed and their outcomes are all based in fact.
Navigating Financial Issues Following a Divorce
Nancy (age 51) had just gone through a tough divorce from her ex-husband. A Probate Judge had issued a Qualified Domestic Relations Order (QUADRO) dividing the former couple’s defined benefit pension plan and 403(b) plans alongside the customary order dividing bank and securities accounts. In the face of the ex-husband’s employer’s apparent bafflement over how to implement the QUADRO, Martinelli Discenza’s principals drew on their legal experience to expeditiously achieve “rollovers” of her share of the defined benefit plan and 403(b) plan accounts to Nancy’s IRA account and the transfer of securities and cash into an individual account in Nancy’s name. As investment counsel, we devised a financial plan for Nancy that will allow her retirement accounts to continue growing on a tax-free basis and now manage her individual and retirement accounts.
Managing the Transfer and Investment of Wealth for the Next Generation
Jeff’s (age 57) Uncle John was a Navy veteran and world traveler. Uncle John had a penchant for buying stocks of Chinese and other foreign companies and maintained securities accounts at multiple brokerage firms. As Uncle John progressed into his eighties and, especially after his wife died, his affairs became increasingly disorganized. Upon Uncle John’s death, Jeff, being John’s next-of-kin, assumed responsibility for administration of Uncle John’s estate. Martinelli Discenza’s principals, sometimes acting in a legal capacity and sometimes acting solely as investment advisers, were able to uncover and sort through Uncle John’s accounts, handle the probate of his estate and coordinate the investment of Uncle John’s assets for the benefit of Jeff, his sibling and their children. Interestingly, some of the Chinese stocks were retained and performed quite well.
Investing for a Financially Comfortable Future
Frances’ (age 78) husband Will died leaving an estate comprised in large part of annuity contracts with high annual fees, limited investment choices, poor historical investment results and, in several cases, “early termination penalty fees,” meaning that the annuities could not be cancelled without paying substantial penalties for up to eleven years. Martinelli Discenza principals were able to effect tax-free exchanges of some annuities into more favorable contracts with improved investment choices and performance histories. Other assets funded new Schwab accounts for which Martinelli Discenza now makes investment choices. We recommended holding the annuities with the heaviest early termination penalties until penalty periods expired. A plan has been implemented whereby Frances knows she will receive a comfortable and regular income every month.
Delegating When Time Is Scarce
Amy, the mother of two, the CEO of her own sizeable business, and a committed community activist, is financially astute. She simply does not have the time to conduct investment research and to manage her own portfolio and relies on Martinelli Discenza to do this for her. As a business owner, Amy demands responsive advisers and detailed reports. We meet her requirements.
Learning the Ropes
Sister and brother Maura and Mike are age 27 and 28. They inherited $400,000 each from their late grandmother. Well-educated but without any experience or training in the investment world, they turned to Martinelli Discenza for advice concerning the tax implications of their inheritance and how to develop a long-term investment strategy suiting their individual situations. Ultimately, Maura and Mike choose Martinelli Discenza to allocate their assets and implement their investment recommendations.
Preserving Principal and Purchasing Power
James is the third generation owner of a large family business as well as the holder of a substantial securities portfolio. He is fully occupied with the management of his business. James is more concerned about the volatility of his portfolio and the long-term loss of purchasing power to inflation than he is about either income or capital appreciation. Our “Bedrock Portfolio” was designed with him in mind – See “Investment Philosophy and Approach – Portfolio Strategy.”