At Blume Capital, we serve individuals, families, foundations, and retirement plans with over $1 million of investable assets. We also will work with younger clients who do not yet meet this threshold but are on a path to accumulating substantial assets.
While our client base is diverse, Blume Capital attracts clients who value experience, professional competence, personal involvement, and independent, unbiased financial advice.
Our high net worth individual and family clients reside throughout the United States and abroad and include:
- Professionals and entrepreneurs
- Academics and research scientists
- Authors, artists, and musicians
- Business owners
- Recipients of inheritances or divorce settlements
Blume Capital Management is a fee-only investment advisory firm. We are compensated only by our clients. There are no indirect or hidden fees, and we neither pay nor accept sales fees or commissions of any kind.
The case studies presented are hypothetical and should in no way be deemed as client testimonials on behalf of Blume Capital. The hypothetical client case studies are only meant to demonstrate how Blume Capital engages with clients.
Can We Afford to Retire?
Situation: Professional couple unsure if they had adequate resources for retirement. The husband wanted to retire soon; the wife was concerned that she’d need to continue working if their savings weren’t sufficient.
Process: Completed a comprehensive inventory of assets and liabilities, as well as cash flow. Created a financial plan that included long-range projections under different scenarios, to determine how long assets would last in retirement. Reviewed estate issues and long-term care insurance.
Results: Received a comprehensive financial plan. Established appropriate estate plans and trusts. Clarified and structured their long-term retirement plans.
Situation: 50 year-old technology executive. Employer completed IPO which led to a dramatic increase in net worth and a large, concentrated stock position.
Process: Educated client about risks associated with concentrated stock positions. Developed investing strategy for a temperamentally cautious client. Created asset allocation plan based on risk profile, age, and liquidity requirements. Designed and implemented a 10b5-1 plan to diversify her concentrated stock position.
Results: Profited from a portfolio with a broader set of investments, and significantly reduced risk. Established appropriate long-term tax strategy.
Stock Option Windfall
Situation: Couple in their mid-30’s. Received large sum of money from company stock options. Preparing for a substantial reduction in income when wife stops working.
Process: Conducted several meetings to clarify financial priorities and evaluate spending needs. Modeled out potential early retirement scenarios. Developed a plan to diversify out of concentrated equity holdings. Reviewed estate plan and evaluated tax implications of changing income profile.
Results: Established comprehensive long-term financial plan with multiple scenarios. Implemented a unified and jointly agreed upon investment plan. Diminished uncertainty about future income levels and resources.
Situation: Single mother inherited sizable estate from parents. Other relatives had gifted low cost-basis stock and real estate holdings. Complicated estate structure with multiple heirs.
Process: Completed an inventory of widely-dispersed assets and real estate holdings. Helped clarify goals and plans for her inherited wealth. Reviewed charitable giving and tax strategies around gifting. Conducted a review of estate plan and insurance.
Results: Designed and implemented of a tax-efficient diversification plan for large, concentrated low cost-basis stock positions. Established a charitable remainder trust. Allocated assets into a more diversified and appropriate portfolio.
Death of a Spouse
Situation: Husband died unexpectedly. Complicated estate with substantial assets. Client was ill-informed and anxious about her finances and investing.
Process: Completed a comprehensive inventory of widely dispersed assets. Coordinated activities with estate attorney and accountant. Educated client extensively on her investments. Developed and implemented an appropriate investing strategy. Created a gifting plan for the next generation.
Results: Diversified portfolio that is appropriate for her new circumstances. Gifting to future generations in a tax efficient manner. Client became a more knowledgeable steward of her finances.