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Welcome to WolfBridge Wealth

Where the Heart and Science of Financial Planning Meet

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Financial Planning

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Divorce Financial Planning

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WolfBridge Wealth Is a Research-Based Financial Planning Firm

Serving the Research Triangle Park and Beyond

Your life is evolving, your financial plan should as well. To support our clients in reaching their goals and responding to new circumstances, WolfBridge Wealth provides personalized solutions brought to you by an experienced professional with a doctorate in financial planning.

Backed by empirical research, our approach leverages an understanding of varying financial situations and behavioral patterns to  develop individualized strategies.

We Provide Dynamic, Client-Centered Support by Leveraging:

Evidence-Based Strategies

Equipped with knowledge from extant peer-reviewed research, as well as our own empirical research, we go beyond intuition to offer our clients data-driven, evidence-based strategies.

The Ceaseless
Pursuit of Insight

By participating in and contributing to the body of empirical research, we not only are able to provide our clients with cutting-edge practices, we are also working to share those practices with others in the industry.

Dedicated, Empathetic Advocacy

We are committed to enhancing your financial well-being. We meet you where you are and work collaboratively towards your goals.

Ready to Learn More?

Meet Mike

Meet Michael Kothakota, Ph.D. 

Michael KothakotaMichael Kothakota, Ph. D.

Financial Planner

As a practitioner and researcher, Michael is a dedicated financial planner who uses evidence-based approaches. Michael’s approach is guided by a core belief that financial planning professionals’ efforts on behalf of clients should be driven by data and a deep understanding of the field.

Michael is committed to applying the science of financial planning to help his clients accomplish their goals.

Prior to WolfBridge Wealth, Michael worked for a large national financial services firm. He was the inaugural Head of Research at the Certified Financial Planning Board of Standards. His extensive experience and education have enabled him to provide exceptional financial planning services.  In addition, he has provided support and planning to hundreds of individuals and families. Michael teaches Foundations of Wealth Management at Columbia University and is also a Professor at New York University, where he teaches Retirement Strategies, Research in Financial Planning and Behavioral Finance. Previously he has taught doctoral level statistics and statistical programming at Kansas State University.

Outside of the office, Mike enjoys reading, exercising, playing with the family dog and baking (bread, in particular).

Education

  • Ph.D. in Financial Planning from Kansas State University
  • M.S. in Predictive Analytics from Northwestern University 
  • Certificate in Financial Planning from NC State University
  • Certificate in Financial Therapy from Kansas State University
  • Certificate in Behavioral Economics from Duke University
  • Certificate in Advanced Analytics from Northwestern University


Affiliations

  • Financial Planning Association
  • American Statistical Association
  • Society of Personal Finance (London)

Providing Research-Driven Planning For Individuals & Families

Financial Planning for Individuals & Families

Offering Enlightened Guidance
To Align Your Wealth with Your Life

From supporting your family to ensuring a ideal retirement, having a financial plan is key to reaching your goals. With a foundation of enduring financial security, you and your loved ones can rest assured that your financial future is accounted for. As you move through life, we’re here to readjust your plan in accordance with newfound pursuits and life’s happenings.

Our Approach Is:

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Solution-Based

Addressing your concerns and identifying your goals is key to developing a plan that mirrors your needs and aspirations, creating a secure foundation and a greater sense of stability.

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Individualized

We do not follow a prescribed process nor utilize blanket solutions. Your distinct life and what sets you apart define the strategies that will be fit for you.

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Forward-Thinking

Your financial plan is designed to meet your needs, anticipate possible challenges and set you up for your envisioned future. Our strategy is all-encompassing, addressing every aspect of your financial picture.

Our Comprehensive Financial Planning Services Include:

Investment Planning

Creating a tailored portfolio in accordance with your goals and desired risk capacity

Tax Planning

Identifying proactive strategies to minimize taxes across all areas of your wealth

Estate Planning

Developing an estate plan in order for you to leave the legacy you desire

Retirement Planning

Coordinating an income and Social Security strategy to ensure a comfortable retirement

College Planning

Building a plan to support the educational pursuits of you, your children or grandchildren

Business Succession Planning

Offering hands-on assistance to successfully pass on your business

Do Our Services Meet Your Needs?

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Divorce Financial Planning

Taking an Advanced Approach
To Navigate The Financial Implications of Divorce

Confronting a divorce can evoke a range of emotions — from stress and discomfort to fear and confusion. With many moving pieces to orchestrate as you prepare for a new chapter, it can feel difficult to know where to start. We are here to serve as both an ally and financial advisor, providing hands-on support and research-informed guidance.

Expert Guidance Informed by Empirical Research & Experience

Having participated in over 200 divorce cases and conducted peer-reviewed empirical research on the topic of divorce, we’re able to understand the emotional intricacies and have a strategic edge surrounding divorce financial planning. With this, we are well equipped to help you successfully prepare for your future and move forward in confidence.

We Offer Support That Is:

Research-Based

Armed with a Ph.D. in financial planning, masters degrees in business and predictive analytics, and having conducted research on divorce financial planning, our approach and advice is grounded in research and backed by experience.

Collaborative

We collaborate with you by understanding your needs through frequent communication. Additionally, we will work with other parties when appropriate, including your spouse, attorney, mental health professional and anyone else relevant to your situation.

Solution-Oriented

We begin with developing specific goals. Throughout our process together, we take an active approach, using highly specific strategies catered to your unique situation to help you arrive at a financial strategy that will work for you.

We Specialize In:

 

Collaborative Divorce

 

Working closely with you, your spouse, both attorneys, and related professionals through an interest-based negotiation, joint problem-solving approach to find solutions that best meet the needs of all parties

 

Litigious Divorce

 

Serving as a work product expert or expert witness to assist you in obtaining a financially sound, fair settlement when litigated conflict is required

 

Second-Opinion

 

Reviewing and double-checking solutions proposed by other advisors to ensure knowledge equalization and a financial plan that is fair and advantageous for you

 

Financial Planning

 

Providing general financial planning for divorcees to manage new financial situations and create a goal-oriented plan

 

Equitable Distribution Analysis

 

Helping to value and determine an equitable division of assets for both divorcing parties

 

Separation Agreement Review

 

Reviewing a separation agreement for financial fairness, and to correct any financial mistakes before signing

 

Cash Flow Analysis

 

Understanding your short- and long-term cash flow and how this interacts with your divorce settlement and financial future

 

Pension Valuations

 

Analysis of retirement plan in order to optimally divide a pension

Are You Looking for Divorce Financial Assistance?
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Research

How Individuals and Wealth Interact

Studies Conducted by Michael Kothakota, Ph.D.

As a contributing researcher in the fields of financial planning and divorce planning, Michael has conducted studies directly applicable to his work with clients.

Explore Studies by Topic:

exclamation mark iconRisk

Risk Incongruency

The Research

Risk Literacy, Data Visualization and Financial Advisors

The Research

Do Financial Advisors Actually Measure Risk Tolerance?

The Research

Risk Tolerance and Political Affiliation

The Research

glasses iconFinancial Literacy

Visualization and Financial Literacy

The Research

people with line between iconDivorce & Finances

Alimony Estimation from Court Results

The Research

Perceptions of Alimony Fairness

The Research

The Effect of Alimony on Savings

The Research

Divorce and Emergency Savings

The Research

Retirement Savings and Divorce

The Research

Risky Asset Share

The Research

Risk Incongruency

Risk tolerance is the amount of risk an investor is willing to take, represented by how much they may handle market losses at any given time. It is thought to be a stable character trait. We experimentally compared several commonly used measures of risk tolerance and found that individuals are inconsistent across measures. In other words, measures reported differing levels of risk tolerance for approximately 68% of people.

Practical Implications

This research suggests that risk tolerance as measured by current assessments maynot be useful in allocating investments. It may be more useful to discuss each client’s risk capacity, the ability of their portfolio to absorb market shocks, in order to appropriately allocate assets.

Risk Literacy, Data Visualization and Financial Advisors

Risk literacy is a measure of individuals’ ability to interpret statistical information. Within a randomized controlled experiment, we found financial advisors perform better when presented with a visual representation of a portfolio’s performance when compared to narrative with text presentation. This result is consistent with previous research conducted with surgeons and police officers, and the general population. In addition, overall risk literacy for financial advisors is higher than previously studied groups.

Practical Implications

Financial advisors have a better understanding of risk than other studied professions. However, this risk literacy can be boosted with a visual representation data, allowing them to perform better. The implication also applies to clients. Advisors should be using visuals with clients.

Do Financial Advisors Actually Measure Risk Tolerance?

Financial advisors are mandated to measure the risk tolerance of investors by the Securities and Exchange Commission. This study investigated the extent to which extant assessments accurately measure an individual’s risk tolerance? Using a mixed-method, quantitative and qualitative approach, results suggest that the measures are inconsistent and inaccurate, and in most cases not useful.

Practical Implications

This study suggests that individual’s histories with money influence their propensity to invest in risky assets. Advisors should conduct detailed interviews with clients to understand their financial decisions and preferences.

Risk Tolerance and Political Affiliation

Using Google search data from just before and just after the 2016 national presidential election, I found that predominantly Democratic precincts became less risk tolerant immediately following the election of a Republican president and predominantly Republican precincts became more risk tolerant. This suggests that an individual’s risk tolerance may be tied to their ideological subjective beliefs.

Practical Implications

This study suggests that a client may take on more or less risk as a result of the political beliefs, regardless of financial and personal goals. Armed with this understanding, advisors can be more effective and can guide clients without engaging in political discussions.

Visualization and Financial Literacy

This randomized control study of 1,892 Americans compared two financial literacy interventions, my co-authors and I found that visualization plus a narrative intervention led to higher scores on questions of five financial literacy concepts (e.g., simple interest, compound interest, interest rate, diversification, and inflation) compared to narrative alone. More importantly, women, who have historically performed poorer on these questions, scored consistently with their male counterparts when provided the visualization plus a narrative intervention. In addition, racial differences in scores were virtually eliminated with the intervention.

Practical Implications

The results of this study indicate that advisors should be using appropriate visuals with clients. Clients will understand financial concepts better when presented with visual information.

Alimony Estimation from Court Results

Data extracted from all available court-filed divorce documents in Wake and Mecklenburg counties (NC) between 2012 and 2016 was used to develop a technique that can provide a range (i.e., a point estimate with a confidence interval) of alimony values awarded by a judge based on the 14 variables outlined in the state’s statute.

Practical Implications

These values can be shared with divorcing parties (and their attorneys) to assist with alimony negotiation, and reduce costs associated with going to trial. In addition, it provides attorneys and clients a realistic negotiation range outside of court. This is useful in setting realistic expectations for clients and can help attorneys construct and evaluate alimony offers.

Perceptions of Alimony Fairness

This randomized controlled experiment investigated perceptions of fair alimony amounts and durations via a survey of 2,230 Americans across four common divorce scenarios (stay-at-home parent, support of spouse through education, wife has an affair, and husband has an affair), varying sex of supporting spouse. The amounts perceived as fair, were also compared to four commonly used alimony formulas. Overall, respondents punished cheating more than the other divorce scenarios, by recommending larger alimony awards. Most respondents perceived female stay-at-home parents to deserve higher alimony awards than male stay-at-home parents. Respondents under 35 were less likely to award alimony in any circumstance.

Practical Implications

The results of this study are useful in understanding a client's mindset as well as helping clients interpret advice they may be getting from friends and family. As the younger generation begins going through divorce processes, it is important to understand that alimony may not be at the forefront of resolving the divorce conflict.

The Effect of Alimony on Savings

Drawing from the Survey of Consumer Finances, my co-author and I found alimony reduces the likelihood that a person receiving it will save and increases the likelihood that a person paying alimony will save. This is contrary to both expectations and the reason for a public policy on alimony.

Practical Implications

Savings is often not considered by financial planners working with people going through divorce. Attorneys and clients need to be more aware of savings as a need, and price that into the alimony and spousal support equation.

Divorce and Emergency Savings

Drawing from the Panel Study on Income Dynamics, this foundational divorce financial research revealed that individuals who divorce save less than those who do not. This effect persists over the individual’s lifetime. However, this effect is reduced in households where both spouses were employed prior to divorce. Women contribute significantly less than men for precautionary savings.

Practical Implications

The results of this study are especially important for divorcing women. Women tend to spend available resources on the household, particularly discretionary spending. Advisors should share this propensity with their clients and encourage clients to allocate a portion of their cash flow to savings as a way to increase financial resilience.

Retirement Savings and Divorce

Also drawing from the Panel Study on Income Dynamics, this study revealed that in general, both men and women dramatically reduce their retirement savings as a proportion of their income immediately following divorce. However, men generally return to their prior level of retirement savings several years after their divorce. Whereas, women are less likely.

Practical Implications

As is the case with precautionary savings, both men and women generally reduce retirement savings around a divorce event. While costs associated with divorce may initially reduce the cash flow available for retirement savings, effort should be made to save for retirement as soon as it is feasible, perhaps with a recovery plan. The preponderance of research indicates many women are significantly less prepared for retirement as compared to men.

Risky Asset Share

With data from the Panel Study on Income Dynamics, this study revealed that both men and women generally do not change their risky asset share immediately post-divorce. However, divorced men tend to become less risky over time, consistent with common financial planning recommendations, while divorced women tend to stay as risky over the lifetime of their account. That is, their share of risky assets continues to get bigger over time, resulting in taking on more risk in later stages of life, which is inconsistent with common financial planning recommendations.

Practical Implications

Financial advisors need to be aware of this likelihood and advise divorced women accordingly. Having a higher proportion in risky assets close to retirement may result in a stunted retirement, or a reduced standard of living. Appropriate rebalancing and advice should be at the forefront of the mind after divorce.

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WolfBridge Wealth

Combining Scientific Diligence with Compassionate Advocacy

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