By Iván M. Mendoza, CFA, CFP, CLU, ChFC, CDFA
I’ve known several attorneys throughout my career as a financial advisor. Many of them are flat-out terrific. The legal profession leaves little margin for error, and the lawyers I’ve known are mentally sharp, detail-oriented, faithful to clients, and driven by a sense of justice.
However, even the best attorneys can get so consumed by the demands of their profession that they have little room for their personal and family finances. Bringing transparency and structure to attorneys’ financial affairs is one of the most rewarding parts of my job. Here are three brief case studies relating to attorneys I was fortunate enough to assist.
1. A Surprise Retirement Windfall
A client I’ve had for years is a partner at a law firm. His office originally brought me aboard to build a company retirement plan. I worked with him and his wife, an attorney in a different field. They were a lot like any successful legal power couple: busy and in constant motion.
The two had multiple retirement accounts when we started working together. I thought we’d identified and corralled them all, but years into our professional relationship, I got a call from my client’s wife. She had found an additional retirement account that everyone else missed. It was from a previous employer, and it had a balance of over $170,000.
We recalculated their retirement projections, and the newly discovered account significantly boosted their savings. The timing was serendipitous, as their graduate school expenses were starting to accumulate. Now they had some breathing room to work with.
This is a fairly common occurrence in my industry. When life moves at a fast clip, we’re bound to miss a few details. Getting them sorted out can be a fruitful accomplishment.
2. Redefining “Safe” Investment Strategies
One particular attorney client of mine was always conservative in his financial approach. When I first went over his investment portfolio, I saw lots of “safe” investment choices: fixed and indexed annuities and money market funds with big balances. This is a common pattern with many attorneys’ finances.
This attorney’s liquid assets were idle for years, generating modest or no returns. We had some straight talk about inflation, purchasing power, and what really constitutes a safe investment over extended periods.
Eventually, he came to understand that his risk aversion had stifled his asset growth. I couldn’t fault him for being cautious, but his investment holdings needed some alterations.
The effect was astounding. His finances got out of first gear, and he felt like he’d regained power over his investment strategy. The transformation was emotional and empowering.
3. Planning for Vulnerable Dependants
I got a call from an estate attorney who was a trustee for a special needs trust. His clients had received a million-dollar settlement that needed to last a long time. However, the trust beneficiary was a young adult with cognitive difficulties. Daily caregiving was one of the parent’s responsibilities.
It was a sensitive situation. If the caregiver passed away, the cost of replacing the beneficiary’s care would rise sharply and jeopardize the trust. As such, my client and I sought ways to guarantee that the trust could cover the financial needs of both the caregiver and the beneficiary.
We established a permanent life insurance plan that provided extra liquidity. If the unexpected happened, the young adult’s care would continue seamlessly. For my client, this was more than business. It was personal for them—and for me too.
Practical Financial Planning for Attorneys and Legal Professionals
At Mendoza Private Wealth, we know how easy it is to lose track of finances amidst hard work and the passage of time. It’s especially gratifying when I can help legal professionals regain control over their finances. When attorneys contact me for help, they access a financial advisor who takes great personal pride in arranging their affairs and positioning them for success.
To learn more, download my helpful guide, Catch-Up Retirement Planning for Attorneys, or schedule a FIT Meeting here.
About Iván
Iván M. Mendoza is the Managing Principal and a Financial Advisor for Mendoza Private Wealth, a fee-only boutique, private wealth management practice with a focus on research, planning, and investment management. Working with clients in Miami and throughout South Florida, Iván provides investment and wealth planning advice to individuals and families and to their respective trusts, estates, foundations, endowments, and pension plans.
Iván began his career with Prudential in 1999, where he quickly advanced to Manager of Financial Services, overseeing a team of financial planners. In 2012, he joined Sanford C. Bernstein’s private client group as Vice President and Financial Advisor. Driven by his commitment to providing objective advice, he founded Mendoza Private Wealth in 2016. Iván holds multiple designations, including CFA®, CFP®, CDFA®, CLTC®, CLU®, and ChFC®, and is passionate about creating confidence in clients through sound financial planning and investment strategies.
A first-generation American of Peruvian heritage, Iván resides in Miami with his wife, Ana, and their two sons, Emiliano and Alessandro. He enjoys traveling, discovering new restaurants, all things science, World Cup soccer, and staying active through running and biking. An advocate for education, he draws inspiration from his grandfather, a former Minister of Education in Peru, and supports educational causes in his community. Iván is also a music enthusiast with a wide range of tastes, from jazz to reggae to heavy metal. To learn more about Iván, connect with him on LinkedIn.
