- pharaonic civil projects
- inequitable and inadequate city service infrastructure
- capital splitting real property and production inflation
- over-sized trucks with even larger homes and exhaust pipes.
meeting with a middle age fellow, say fred fellows, over time revealed a common asset / liability management strategy. fred's strategy involved stacking chips fully deep into working interests. although he created significant profits with some equally gripping losses, his risk profile appeared imbalanced towards asset yield.
once fred and his retained financial counsel blueprinted his exit strategy, they envisioned his family's legacy and designed his pension. rather than double down on working interests, he considered taking profits or losses where appropriate and pivoted resources shrewdly.
his strategy included additional asset allocation into more stable royalty interests as well as other financial instruments. we pruned profits away from 100% working interests, reduced overall asset portfolio volatility, and stabilized cash flow. understanding his overall risk profile required an independent mindset with collaboration, intense thought, and intelligent execution.
as in fred's case, like all cases, we must always look around the corner. structuring his enterprise vision well ensured a road map to provide legacy capital for many generations. cash flow sources will affect not only his future lifestyle but provide unimaginable opportunity down the road. his tax attorney joined our party and maneuvered the estate tax challenges with gusto!
beyond the next seven generations, we designed his own custom-tailored pension that can avoid outliving income and cover uninsured healthcare expenses. focusing on future income and healthcare liabilities anchored his asset portfolio and developed a robust foundation. why worry about beating a market index when you can engineer a lifetime guaranteed income benefit?
for instance, fred invested $500,000 and created a meaningful income benefit with a properly designed income annuity. we engineered the guaranteed income stream to create over $55,000 per year within ten years for life. although his income benefit will total over $1.00 million, he simply cannot walk away with that lump sum amount.
he must use the accumulation value for a lump sum distribution; moreover, his income annuity represents his own particular situation around age 60. you should consult proper tax counsel as necessary, and yes, not all income annuity contracts remain equal.
most individuals desire predictability and guarantees. the lump sum placement only comprised 25% of his entire portfolio but provided guaranteed cash flow and piece of mind! additional profits could increase the income benefit or go elsewhere to satisfy his holistic needs.
fred's pruned oil / gas asset portfolio avoided a fully deep position. volatile market swings can reward monetarily but may also punish market players with inconsistent cash flow and poor health.
our financial instrument choices did not not amplify volatility but secured principal with affordable, attractive, and beneficial options. he also invested in a extended care insurance combination solution with a life insurance structure. we repositioned 250,000 and generated a meaningful death benefit solution with tidy coverage against uninsured healthcare expenses.
we did not choose a premium-based extended care policy since he had assets that he repositioned profitably. his risk management process required foresight and deliberation with no shortcut toleration. we utilized a customized, holistic asset / liability management approach.
nevertheless, fred fellows desired maximum enjoyment regarding the benefits of ownership. he can always break his back, but at the end of the day, he can pivot and change his direction without much fuss. besides, why risk your health wellness, right?
mendez & co. financial counselors maintains that the case study does not fit all cases, especially in the nuanced oil / gas market. seek out professional financial counsel and blueprint your exit strategy, envision your legacy, and design your pension!
...you can count on my professional judgment, my resource access, and my practical counsel...
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