Highly Compensated, Busy Executive
Problem: A executive with a advertising firm came to us with a substantial sum of money in cash accounts earning little or no return. The clients had little or no time to properly manage their financial affairs and therefore had no strategy to invest their holdings, had legal documents that were years out of date, and wanted to know if they could retire at a relatively young age and what lifestyle they could expect.
- Creating detailed cash flow projections and modeled their tax liability. We were able to reduce their tax liability by $10,000 by adjusting the payment timing of some of their deductions.
- Modeling several different retirement scenarios to help pinpoint when the executive could retire, what rate of return they needed to earn on their invested assets and what lifestyle they could expect to enjoy in retirement.
- Creating a prudent portfolio allocation and investment policy statement so the client’s idle cash could be invested properly and in a fashion that would greatly increase the odds they will meet all their goals and objectives. Their long term projected return increased from 4% to 9%.
- Reviewing all insurance and employer benefits to identify potential areas of risk. In particular risks such as premature death, disability, and lawsuits were considered.
- Providing the client with outlines for new wills, and other legal documents and introduced them to an attorney that specialized in estate planning. The client now had a plan to help preserve their significant estate through the next generation and one that met the unique needs of their family
The benefits to the client:
- They were happy to learn they could retire early if desired and could still fund several of their goals (satisfying some long term dreams).
- The client now had good projections for the growth of their net worth over the next few years.
- The non-executive spouse was put at ease in knowing that a premature death would not impact their lifestyle.
- The client’s family was put at ease knowing a solid plan existed to pass on assets at the lowest possible cost.
- The client now had a strong long term approach to the proper management of their significant assets.
- The client now has peace of mind knowing that we are monitoring their financial circumstance on an on-going basis, leaving them to concentrate on their career.
Stonegate Wealth Management ’s highly experienced professionals, including partners Thomas J. Geraghty, Jr., CPA, CFP, Steve Craffen, MBA, CFA, and Craig Marson, JD, CPA, solve complex financial challenges and provide counsel for the pressing financial issues confronting their high net worth clients. They have deep knowledge and experience in taxes, estate planning, investment management and divorce settlement counseling. The firm manages $185 million in assets. Tom Geraghty, tomg@stonegatewealth.com, office , 201-791-0085, cell 908-347-3032
Trends from Ink&Air -- Editor: Lisbeth Wiley Chapman, beth_chapman@inkair.com, 508-479-1033
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