Simplifying the needs of your complex wealth and busy lifestyle
While an executive frequently has the financial resources to plan a secure future, they often lack the time to make sure they are making full use of their corporate benefits and protecting themselves from large tax liabilities and other risks.
Hightower Wealth Advisors | St. Louis collaborates with executives to customize solutions for situations like these:
How do I navigate my corporate compensation plans?
Can I minimize the tax impact from my executive benefits?
I don’t have enough time to coordinate my complex benefits. Can you help?
Most of my wealth is tied up in my company stock. How do I help protect myself?
I’m getting ready to retire. When should I consider adjusting my savings and distribution plans?
Planning
Coordinating the maximization of company benefits and implementing successful income and spending strategies that support healthy retirements.
Retirement Planning
Accumulation Strategies
Executive Stock Compensation Planning
Lending Solutions, including Real Estate Financing
Distribution Election and Cash Flow Planning
Investment Strategies
Developing and executing a portfolio strategy that addresses the investment needs of time-strapped executives and measures risk of owning too much company stock.
Personalized Investment Strategies
Private Investments
Management of Single Stock Concentration
Corporate Retirement Plan Coordination
Comprehensive Allocation Coordination
Working with Executives
The Dilemma
Jay, a busy executive who doesn’t have the time to fully coordinate his family’s financial planning, has a very complex corporate benefit and compensation package that includes stock options, performance shares, deferred compensation and a retention bonus. Jay has a large amount of his wealth tied to the public stock of the company, which is worrisome since it’s also responsible for his income.
Taxes are a big issue for Jay and trying to understand the mechanics is becoming overwhelming. Meanwhile, he’s ready to start thinking about what retirement will look like down the road. Jay and his family are contemplating purchasing a family vacation home, but unsure how that will work in their retirement plan.
The Solution
Our professionals started by helping to organize all aspects of the family’s financial future, including creating detailed cash flow and compensation tables, as well as digging into the nuances of Jay’s complicated compensation package. To tackle the concentration risk, we began diverting investable assets away from stock in his employer. Depending on restrictions placed on Jay by his company, we examined selling vested shares to buy other funds or utilizing more sophisticated protection strategies such as options or an exchange fund, ultimately building out a portfolio to incorporate the concentration.
Addressing Jay’s retirement planning required us to gain a clear understanding of the family’s spending needs first. Then we selected the deferred compensation payout elections that best fit his goals so that he now has a very detailed plan on where their cash spending needs would come from years before they actually need to take the withdrawals.
We explored a second home purchase with lending solutions as well as how it will impact their retirement plan. Now taxes and estate planning come into the picture. Our advisors run point as we coordinate with both the accountant and estate planning attorney to develop strategies to accomplish the family goals.
This is a fictional situation. Specific financial advice references provided herein are for illustrative purposes only and are not representative of decisions that have been made since the case study was published nor of decisions that would be made in the future. Advisors’ services, investment strategies and conditions for accepting accounts may vary.
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