A 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.
Corporate Executive in a Demanding Job
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- Outdated beneficiaries on file for retirement assets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- Out-of-date estate and disability planning documents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
COLLABORATING 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