Thursday, June 21, 2018 from 12:00 PM to 1:00 PM PDT
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Lucas Group Financial Planners, Inc. 
1545 River Park Drive
Suite 401
Sacramento, CA 95815

Driving Directions 


Holly Wilkerson 
FPA of Northern California 
(916) 443-4237 

6-21-18 - Study Group Meeting 

Hello Fellow FPA Members and Sponsors,

Please join us on Thursday, June 21, 2018 at the office of Lucas Group Financial Planners, Inc. in Sacramento. We will be meeting from 12 – 1 pm and this will be a brown bag lunch.

The address is:
1545 River Park Dr., Suite 401
Sacramento, CA 95815

Phone: (916) 921-9220 or (800) 925-8227 

The topic for discussion will be a case study involving Susan Johnson, a widow who recently came in to help settle her husband’s estate. Fred Johnson passed away unexpectedly from a heart attack in late 2017. Fred and Susan were married for 30 years. Susan has 4 adult children from a previous marriage and 8 grandchildren between the ages of 14 and 3. All four of Susan’s children get along and are financially independent. Fred has two adopted children from a previous marriage.  One child is estranged and has addiction problems. The other child is financially independent, but no grandchildren.  

Fred and Susan had updated their estate plan in 2011.  He has the Trust listed as the primary beneficiary on all retirement accounts. Susan also has the Trust listed as the primary beneficiary on her retirement accounts. The house and land are in the Trust.  Susan is the primary beneficiary of the Trust, but upon her death the assets are to be divided equally among Susan’s 4 kids and Fred’s 2 kids.  Fred and Susan owned an agricultural manufacturing company. They sold the company in 2016 for $200,000 in cash and an installment note (details below).  Susan enjoys animals and grew up on a farm.  She has a passion for rescuing abused horses.  Fred and Susan bought a home 10 years ago on 20 acres so that she could have animals on their property.  The used money from Fred’s parents’ estate to purchase the home and land.  They also planted olive trees that produce olive oil.  The olive oil production had been taken care of by Fred.  Susan is not sure what to do about the olive oil farm and is feeling overwhelmed with all the land to look after.  Her children are encouraging her to keep the house and land, but she wants to know if she can afford to keep the house and still live comfortably.  

Her Goals:

1) She would like know if she can stay on the property or not.

2) How much can she afford to spend every month

3) To simplify her life as much as possible

Client Profile:

Name: Susan Johnson
DOB: 1/15/48
Occupation: Artist
Marriage Status: Widow


a) $20,000/year from art sales
b) $5,000/year from olive oil sales net of taxes and production costs.

Social Security: $9,000/year (gross). Currently collecting benefits.

Life Insurance: $100,000 face amount. 20 year-term with 5 years remaining.

LTC Insurance: None

Pension: None

Husband (Deceased) Name: Fred Johnson
DOB: 9/5/1950
DOD: 12/15/17 (Heart Attack)
Occupation (at time of death): Retired


Social Security:  Had not started benefit.  Had he started collecting, his benefit at death would have been $35,112 (gross)

Installment Note: $30,000 per year from sale of business.  Payments Include interest and principal. 5 years remaining on note.  Payments will continue to widow, Susan.

Life Insurance: $300,000 term policy that was in force at time of death.
LTC Insurance: None
Pension: None


Joint Checking: $15,000
Joint Savings: $25,000
Roth (Susan): $50,000
Roth (Fred): $150,000
Simple IRA (Susan): $20,000. No contributions in past 12 months.
Simple IRA (Fred): $100,000. No contributions in past 12 months.
401k (Fred): $600,000.
Real Estate: Home: $500,000 on 20 acres of olive oil farm land.  Land value is $1,250,000. 


Home Mortgage - $200,000 at 4.25% with 5 years remaining.

Monthly Expenses: $10,000 after taxes.

How would you approach the intake meeting to ensure that you receive the necessary information to help Susan? Please come with your ideas and thoughts.

See you there!