Corporate Executive in a Demanding Job

Corporate-Executive-in-a-Demanding-Job-01

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    • 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.

    • 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    • Outdated beneficiaries on file for retirement assets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    • Out-of-date estate and disability planning documents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