Questions & Concerns:
David & Christine’s Story:
David and Christine originally met us at a speaking engagement and went through our Wealth Management Process shortly thereafter. Christine administered the household finances and spent much of her time managing her kids’ chaotic schedule. David had been a successful executive at a Fortune 500 company but had reached a ceiling at which he no longer felt challenged. This led their family to a crossroads, and they were primarily looking for guidance with regard to parting ways with his lucrative career and moving on to the next chapter in their lives – the inception of entrepreneurialism.
One of the most terrifying unknowns one can embark upon is the creation and success of their own business. As a family-owned business ourselves, we understand the risks, potential pitfalls, and road blocks that individuals face when launching their own company, and there is much to plan for and consider in order to realize anything that remotely resembles prosperity or happiness. We constructed an all-inclusive financial plan that included a multitude of solutions (as listed above), beginning with an analysis and plan for David’s old 401(k), grants, and stock options, which were crucial from a timing standpoint. Certain options vested after pre-determined time periods, which meant that, in order to maximize his liquid net worth, we needed to account for David working a few months longer than originally anticipated.
Next, we needed to ensure the two of them had acquired enough liquid cash on-hand to “float” their family through the initial stages of start-up, launch, and initial growth of the new company. Once this task was behind us, the plan required analysis of a multitude of various administrative business-related action items, such as operational tasks related to payroll, the design and implementation of an appropriate company retirement plan, health insurance, life insurance, disability insurance, and the development of a multi-faceted estate and business succession plan, which included a trust and buy/sell agreement.
Along the way, we were able to plan for college in a tax-efficient manner along with the assistance of David and Christine’s CPA. Utilizing the savings accumulated through past education plans in conjunction with a tax strategy that included the compensation of minor children, we were able to achieve their college savings goals all while minimizing their income tax burden.
David and Christine continue to meet with us on a semi-annual basis, updating their plan as the business continues to grow.