Corporate Executive in a Demanding Job

Fifty-two year old corporate executive in a very demanding, time-consuming job, came to us when he and his wife realized that their financial lives were too complex and they needed help.

the situation

  • Wealth concentrated in employer’s stock ($6M in common stock, $5M in RSUs, $9M in options, mostly all pre-tax)
  • Majority of assets held in husband’s name
  • Outdated beneficiaries on file for retirement assets
  • Multiple properties in different states
  • Out-of-date estate and disability planning documents
  • No strategic plan for wealth accumulation or protection

Our Approach

  • Created an inventory of all assets, liabilities, income sources and vesting schedules
  • Helped create and prioritize wealth management goals
  • Built financial planning projections to determine a prudent level of investment risk
  • Developed a 10b5-1 plan to effectively divest employer stock over time
  • Calculated the missing cost basis from a 20-year history of stock grants
  • Selected and monitored deferred compensation investment elections
  • Consolidated a number of former employer retirement accounts and IRAs
  • Conducted an insurance needs analysis which included reviewing employer-provided benefits

Collaboration with Specialists

  • Provided missing cost basis to tax preparer to ensure that realized gains on more than $5 million of stock were accurately reported
  • Modeled different deferred compensation payout schedules with tax advisor
  • Introduced the client to an attorney to establish a comprehensive estate plan
  • Worked with the tax advisor and estate attorney to educate the client on the implications of properties in different states and selecting a state of domicile
  • Coordinated property and umbrella insurance to provide adequate coverage and to protect the client when traveling globally

Significant Results

  • Better equipped to monitor their financial and lifestyle goals
  • Diversified investment portfolio matching clients’ goals and risk profile
  • Well-thought-out strategy addressing future stock grants and deferred comp
  • Mitigated risks through the use of appropriate insurance and estate planning
  • Minimized income taxes by proper timing of employer stock divestiture
  • Plans to re-domicile in Florida upon retirement to minimize taxes