Case studies

Small business owner – family. Succession plan

Small business owner and wife are nearing retirement. His daughter is taking over the business while is son is not interested in the business. The client couple have several objectives:

  • Smoothly transition the business to the daughter while at the same time managing the dynamics of the son’s sale of his shares.
  • Determine succession plan that pays him fair value for the business yet makes purchase possible for daughter. Considering a combination of cash, financing and gifting.
  • Build onto their investment portfolio to create moderate growth and tax efficient income.
  • Maximize their charitable ambitions, considering pros/cons of outright gifting, direct IRA distributions, Donor Advised Fund and Private Foundation.
  • Contribute to grandchild college education plan through 529 funding.

Our process: We quarterbacked the meetings with client’s estate attorney and CPA to develop a successful succession strategy between all family members, with preliminary combination of cash, lending and gifting. We previously established a grantor trust in order for client to transfer his shares out of his estate and maximize future value. The client is invested in our Moderate Profile Portfolio allocated in multiple asset classes providing market participation through equities and tax exempt income through municipal bond ladder strategies. We continue to discuss charitable strategies and have set up 529 plans for the grandkids.


Dream home

After returning from a 3 year European work assignment Client couple needed financing for multiple stages of the construction of their dream home. We helped client with a lending strategy that involved securing both an asset-backed credit line and also a traditional fixed mortgage that transitioned from a construction loan. Client continues to utilize asset backed lending through RBC and has locked in his preferred rate with a term that matched his specific needs. He also has a short term line that allows him the flexibility to manage cash flow more efficiently, while keeping his investments working.

Elderly client transition to senior living

Client spent several years fretting over a needed move to a Senior Living Community. There were concerns about leaving the home and neighborhood she loved. Along with this came concern over her retirement plan and changing cash flow and health care costs. We conducted many meetings with the client, and also met jointly with her daughter. By having a detailed Retirement Analysis in place, we were able to model different scenarios based on the various costs associated with the senior communities she was considering. We also counseled her on services available in the area that specialize in senior moves and sorting of their possessions. Client was able to find a community and make a successful transition. She and her family are very happy knowing she is well taken care of both in terms of care and finances.


Retiring executive

After 40 years at the same company, an executive is nearing retirement and needs detailed, high end planning, particularly around his stock options and company stock. After several meetings to fully understand the couple’s goals, tolerance for risk, income needs and estate plans, we modeled a plan encompassing investments, distribution schedules, cash flow and risk management. We developed a model to reduce the company stock concentration while managing the volatility and taxes. Client has retired and the couple have begun the next chapter knowing they have a tax-efficient cash flow plan that’s been stress tested to show a 97% probability-based outcome.


Career transition

After a successful career at one of the largest companies in the world a client wanted to follow his entrepreneur side and invest/buy a local small business. We helped the client navigate and plan for a potential purchase of a business. We put together an income strategy as well as lending solution so the client felt comfortable borrowing for the acquisition and would have a steady income stream while he transitions careers. We facilitated meetings throughout the process as the client interviewed numerous financing opportunities as well as helped review potential purchase options. We helped build a team of specialists to review potential deal terms, acquire financing and set up legal contracts.


Retiring couple

Client couple were beginning to consider their retirement date. The husband was in the process of selling his business and we worked with the couple to build a goals-based portfolio with the sale proceeds, providing a balance between growth and tax-exempt income. The wife was interested in retiring from her job so they could be together but her job provided the family’s health care benefits and Medicare was still several years off. We worked with both the husband and wife to build a comprehensive strategy to support their various retirement goals. We also built a probability-based retirement analysis that showed a high level of confidence that their goals could be achieved in retirement. Additionally the plan was stressed tested to allow for possible bear market scenarios. After several meetings involving in depth review of health care costs, cash flow projections and retirement modeling, the wife had gained the confidence that she could retire at any time. The couple are thankful and excited to have begun their retirement, supported by a comprehensive plan, a year earlier than they had planned.


These examples are for illustrative purposes and not intended to be representative of any specific investment vehicle or strategy. Past performance is not indicative of future results.