WHO WE SERVE
Our primary responsibility is to you, our Client. We are not part of a larger firm and our business model doesn’t rely on “selling products.” It’s based on providing sound advice and a high level of client service. Simply put, when you succeed, we succeed.
Situation: A top tier executive at a fortune 500 company was beginning to reach the point of burnout after a recent merger. He had built a significant amount of wealth through his executive compensation plan, especially through stock options after a large increase in the stock following the financial crisis. Our executive is married with two children in college. Although we had done some planning in the years prior for college and a second home on the water, we had never really analyzed what life may look like, late career, outside of the corporate world.
Process: After reviewing the employment contracts, there would be a very large tax event in the year of retirement from the combination of severance pay, bonuses, restricted stock and pension payouts. We were able to purchase NAP credits (Neighborhood Assistance Program) with appreciated stock, which provided significant tax savings. We were also able to coordinate with the company’s HR in the analysis of the Pension, deferred compensation and severance benefits, in which a number of mistakes were found. Upon completion of the departure, we created an Investment Policy Statement, which would guide investment and cash flow decisions over the next year and over the longer term. Most importantly, we plugged our client into our network of professionals, entrepreneurs and investors to help network and write the next career chapter.
Helped educate the client about the tax credit program in Virginia.
Worked with the company’s HR department and a contract attorney to ensure that benefits were fully understood and calculated correctly.
Analyzed the corporate pension to determine the optimal retirement date and pension option.
Developed a stock option policy, which allowed the executive to reduce single stock exposure and maximize each individual option grant over a period of 5 years.
Developed an Investment Policy Statement (IPS), which outlined the asset allocation, risk management, cash flow and growth goals of the portfolio.
Worked with the tax attorney to update the client’s wills and trusts. In addition, we funded the trusts to take advantage of probate laws. Most importantly, we coordinated the client’s other assets (insurance & retirement plans) to make the total estate plan effective.
Implemented a Donor Advised Fund, which provided a significant tax benefit in the client’s highest income year, and would allow charitable gifts for the next 10 years.
Most importantly the client was given piece of mind in knowing that their plan was up to date and monitored regularly.
Plugged the client into our network to assist with the next career choice, in which he found a great Venture Capital opportunity.