Late Stage Business Owner

Client Objective:

A couple in their late 50's came to us as they were getting ready to sell their local casual restaurants to a national chain. They wanted a partner that would work with them before, during, and after the business sale process. The couple was focused on investing the proceeds of the sale so that they would grow over time. They also wanted us to advise on a variety of other financial decisions such as buying a house on the beach and modeling different monthly cash flow and spending scenarios.

Our Advice:

Guidance During Sale of Business

Leveraging our professional’s background in business valuation, we were able to provide the clients with a ballpark assessment of the potential value of their business and the relative goodwill implications. We also recommended different ways to structure the client’s payout from the sale of the business.

Investment Management

We built and recommended a diversified portfolio with a 70 percent allocation to equities and 30 percent allocation to fixed income to help them achieve their rate of return required to reach their growth goals.

Financial Planning

We ran different scenarios based on upcoming real estate transactions to see how the purchase of a new home would impact their net worth today and years in the future. Through dynamic planning, we modeled different living expense scenarios on how each one would impact their long-term wealth management plan.

Wealth Enhancement

We discussed the fact that he was transitioning from a lifetime of earning a monthly salary to no salary, and now monthly withdrawals in the decided amount would be the source of his cash flow. We also established the correct time for him and his wife to start receiving social security payments.

Wealth Transfer

We worked with the couple’s estate attorney to confirm their accounts were titled to match their estate documents, and ensure that their will, living will, and powers of attorney were updated and revised due to changes in estate laws as well as for the business sale. Assets were divided into trusts for both spouses. We also discussed setting up an ABLE account for their teenager with autism.

Wealth Protection

We checked that an appropriate umbrella policy was in place and reminded them to add the new beachfront land to this policy once it was purchased. Because of the sale of the business, the family had COBRA for health insurance. We confirmed they have a plan in place to continue coverage once this expires.

Charitable Giving

The clients opened a Donor Advised Fund and funded it with the securities we recommended for substantial tax savings.