Follow Up

Alexandra has called you following your initial meeting. She liked what she heard and wants to pursue some of the items you discussed in your first meeting.

Her items for discussion include:

Her investment portfolio. She has emailed you a copy of her December statement. Alexandra wants a complete review of the portfolio and how your bank may view her asset allocation. She would like a proposal that includes your opinion regarding the economy and financial markets.

She has talked with her attorney and she wants to update her estate plan and she wants to talk to you about:

a$.$ How her life insurance is structured?

b$.$ Does she have enough?

c$.$ Is her business valued properly?

d$.$ How can she structure her ownership to transfer shares?

e$.$ How can she provide and protect her daughters' futures?

She has several key employees that she wants to reward based on the franchise value they help create. What are her options to accomplish this?

She wants to set aside money for the children's college in a $529$ plan. She wants to know what a $529$ plan is$,$ its benefits, how much can she contribute and how does North Carolina's plan compare to Virginia and Texas. $($Friends of hers have children in college there$)$

Current Investment Management Account is allocated:

Key Stats ADS, Inc.

$2023$ Gross Sales

Number of FTEs

Salaries

Health Benefits

Retirement Plan

$($Profit Sharing $401$k$)$

Debt Outstanding

$($Short and Long Term$)$

Real Estate Owned$-$

Cash and Cash Equivalents

Buy$/$Sell Agreement

$($Estate of Alexandra Rawlings

Funded by life insurance$)$

$[$Cash Value $328,000]$

Hedge Fund

Fixed Income

Commodities

Equities

$\backslash$table$[[10\%,$Hedge Fund$],[20\%,$Fixed Income$],[15\%,$Commodities$],[55\%,$Equities$]]$

$8,500,000$

$33$

$2,900,000$

$765,000$

$174,000$

$3,125,000$

$2,500,000$

$1,125,000$

$6,000,000$

$$

Trust Sales Presentation$-$ Case Study $2024$

You have been given a referral by one of your commercial bankers. The referral client has been a long time customer of the banker. The banker conveys how important the client is due to the fact she is an excellent credit and a frequent borrower.

What you are told

Name:

Business

Current Loan Balance

Net Worth

Alexandra Rawlings

Owns several "day spa" franchises in Virginia, NC$,$ and SC$.$

$$2,500,000,$ Alexandra's Spas, Inc $$18,000,000$ approximately

You are being referred to the client because she has heard good things about the wealth management division. The most recent compliment she heard was at the annual Bear Grass Chamber of Commerce awards dinner. The banker tells you that the reason she wants to talk to you is that she was not impressed with the way her investment advisor communicated with her during the past year. She felt like she was learning about market movements all alone.

Additional information

Alexandra lives in Wendell, NC with her two daughters, Susan $7$ and Ellen $10.$ Alexandra is $43$ years old and was divorced $3$ years ago from her physician husband. Custody is shared and there are no acrimonious money arguments outstanding.

She is a graduate of Salem College and has an MBA from Virginia Tech.

Her parents are deceased$-$ Alexandra inherited approximately $$5,000,000$ in property; mostly cash, marketable securities$,$ and the home place. She is an only child.

ADS Inc. started in $2010$ with one location and has since expanded to $12$ locations. They are in: Raleigh, Charleston, Wilmington $(2),$ Virginia Beach, Alexandria, Richmond, Cary, Columbia, Greensboro $(2),$ and Asheville.

Annual Salary

$$1,200,000$ per year plus a car

She owns $100\%$ of ADS, Inc.

Her $401($k$)$ is in Fidelity Target Portfolio $2040$

Trust Sales Presentation$-$ Case Study $2024$

You have been given a referral by one of your commercial bankers. The referral client has been a long time customer of the banker. The banker conveys how important the client is due to the fact she is an excellent credit and a frequent borrower.

What you are told

Name:

Business

Current Loan Balance

Net Worth

Alexandra Rawlings

Owns several "day spa" franchises in Virginia, NC$,$ and SC$.$

$$2,500,000,$ Alexandra's Spas, Inc $$18,000,000$ approximately

You are being referred to the client because she has heard good things about the wealth management division. The most recent compliment she heard was at the annual Bear Grass Chamber of Commerce awards dinner. The banker tells you that the reason she wants to talk to you is that she was not impressed with the way her investment advisor communicated