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Case Study:  Bob and Betty Brown

Bob and Betty Brown were referred to us by their trusted CPA.  They came in for an introductory meeting after researching the Fee-Only aspect of our firm.  This independent businessman previously worked for a large corporation and had received a very generous severance package. There was a need to roll over his 401(k) monies, allocate them to mesh with his newly customized investment structure and to transition from expensive proprietary investments. In-depth tax planning was necessary to coordinate the payouts from a deferred compensation plan along with the exercise of vested nonqualified stock options that would expire in the future.

This businessman had established a corporation to run his consulting business. Along with having numerous tax deferred and personal accounts (which we consolidated), he was a part owner of a large family farm that he intended to own completely one day and then share with his children.

As we typically do, our first task was to have Bob and Betty clearly discuss the important goals and desires they wanted to accomplish, along with the virtues and values they would like to impart to their children.

Itemizing these goals of financial independence, desired time horizons, and lifestyle needs allowed us to calculate necessary investment accumulation targets. While integrating the tax aspects of his deferred compensation plan along with the exercise of the stock options, we structured a customized retirement plan permitting him to accumulate a tremendous amount of money along with saving over $150,000 in taxes during the three year period we have been working together.

We will counsel him in acquiring his family farm along with structuring a trust so the farm is available for use by succeeding generations. Bob and Betty will not only be financially able to pass down their treasured family retreat to their children, but their children will also receive their parents’ firm values as an inheritance.

Bottom Line For This Couple – we removed the stress, anxiety and decision paralysis in their life by –

  • Clarifying the big picture goals and plan
  • Providing expert guidance and counsel in dealing with crucial and complex issues
  • Saving them substantial amounts of unnecessary costs and taxes.

To learn more about how we can help you as a business owner, contact HSC Wealth Advisors today!

 

*This success story is based on true events but names and minor circumstances have been changed to maintain confidentiality.