Real-life event. Client name has been changed.
The background.
At Naples Global Advisors (NGA), we are far more than wealth advisors. We develop genuine relationships with our clients and care about both their investment and life goals. We are attuned to their habits and recognize patterns in their financial activities, including when, where, and how they typically request money.
So, when our long-time client, Bruce, began to act outside of his usual pattern, we noticed.
Bruce had always been very aware of his investments and actively involved in the management of his portfolio. Now in his 90s, Bruce's once-predictable pattern changed. NGA representatives noticed that he was calling more frequently to request money. At times, he would forget about requests made a few days earlier. It was clear that Bruce was starting to show signs of confusion.
Going the extra mile.
While NGA's corporate culture is purposefully designed so that every employee is familiar with every client, this situation warranted an exception. Looking out for our client's best interest, NGA implemented internal controls that would ensure a single point of contact for Bruce so that his irregular activity would not go unnoticed.
Having one point of contact also provided the opportunity to compassionately talk with Bruce, continually monitor his awareness, and gently remind him of withdrawals made earlier in the week. When his cognitive abilities grew of greater concern, his NGA representative alerted family members. Appreciative, Bruce's two sons became more involved with their father's daily life and proactively contacted Bruce's attorney to activate contingency succession.
Throughout the duration of Bruce's gradual cognitive decline, every encounter was handled with respect and sensitivity. Bruce's trusted network of loved ones and NGA representatives helped to guide him through this difficult transition. By recognizing the early signs and acting with compassion, NGA was able to protect Bruce's financial assets not only from himself, but also from others who may have taken advantage of his situation.
Had Bruce's account been managed by a firm without the level of personalized service that NGA clients receive, it is likely that his change in behavior would not have been noticed so quickly. Without immediately recognizing the change in pattern, the phone calls would not have raised concern and funds may have been distributed from his checking account with each (repeated) request. The ultimate risk was that Bruce's funds would have been depleted, necessitating the need to sell off other assets to cover expenses for the remaining years of his life — which also would have subjected him to significant capital gains taxes.
Fortunately, that is not how Bruce's story ended. With NGA's oversight and stewardship to do what is right, Bruce gained the early family support he needed, and ultimately transitioned to an appropriate care facility until he passed at the age of 100, when his remaining funds were distributed to his sons.
"People are creatures of habit, including the way they handle their finances," shares the NGA Client Advisor. "We get to know our clients and their patterns, like when they typically balance their checkbook or withdraw money. We pay attention when those habits change. In Bruce's situation, our genuine concern for our client's well-being enabled the family to get involved early and protect his interests. We considered it an honor to walk alongside the family and help them through this difficult time."