Client Stories
Executives
Is it possible to really have financial independence?
Consider an executive in his late 50s working for a large privately held company. His compensation includes both a base salary and a significant portion of equity-based incentives, such as restricted stock, stock options, and performance awards.
He and his spouse have two adult children with ongoing financial needs. While financially secure, the family must carefully plan around how to best support their children, manage compensation that varies year to year, and stay on track for their own long-term goals.
This executive is very hands-on and prefers to stay actively involved in the decision-making process. His main objective is to achieve financial independence, create peace of mind for his family, and ensure that his children receive the appropriate financial support well into the future.
The central question becomes: How can he balance equity compensation, family support, and long-term wealth-building in a way that aligns with his goals?
Key Concerns
In this example, the executive’s goal is to reach financial independence by age 62, giving him the flexibility to retire if he chooses. He wants to ensure that every part of his financial life is properly coordinated, that opportunities are not being overlooked, and that planning remains proactive rather than reactive.
Some of the key questions he considers include:
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Are we aligning all aspects of compensation, investments, and taxes into one coordinated strategy?
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How can we make sure we are proactive in taking advantage of planning opportunities?
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Are we on track to reach financial independence within the next several years?
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How can we provide ongoing financial support for our adult children without compromising long-term goals?
Are my investments being managed properly?
Am I managing my compensation structure and stock options effectively?
Am I doing proper tax planning for optimizing my income tax situation?
Will we be able to reach our lofty financial independence goals?
How do we ensure that we’ll be able to continue to financially support our two adult children with mild disabilities, along with leaving them a legacy?
We feel unorganized having multiple professionals handling different aspects of our portfolio, taxes, and financial plan. Can you help us coordinate and give us more financial peace of mind?
Our Approach
In this scenario, the couple engaged in the Custom Wealth Architect planning process, which is designed to evaluate multiple areas of their financial life in an integrated way. The process may address:
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Estate Plan Focus
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Personal and Business Investment Focus
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Financial Independence Focus
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Business Exit Planning Focus
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Custom Wealth Tax Inspection
A key lesson from this example is that, while many executives and families work with multiple professionals, they often discover that no one is coordinating the overall effort. This lack of integration can lead to inefficiencies or missed opportunities. By using a structured, cross-disciplinary process, individuals may gain greater clarity and a sense of relief knowing that their financial picture is being approached in a more cohesive way.
How We Would Help
Financial Independence
In this example, the couple sought greater confidence in their financial future and wanted a plan that clearly aligned with their goals. An integrated financial strategy may involve:
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Developing an overarching financial plan with clear implementation steps designed to increase the likelihood of meeting long-term objectives.
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Reviewing estate planning documents to ensure they accurately reflect the family’s wishes, and coordinating with an estate attorney to make any necessary updates.
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Reducing the need for the family to coordinate multiple advisors by providing a more comprehensive, goal-directed approach that integrates tax, investment, and legal considerations.
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Considering specialized trust structures as part of legacy planning. For example, families supporting adult children may explore trusts that provide financial protection while addressing concerns such as creditors, divorce, medical expenses, or taxes.
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Emphasizing ongoing reviews, since financial strategies should evolve alongside changes in goals, economic conditions, and laws.
The ultimate goal in scenarios like this is to help individuals and families create a sense of clarity and independence, freeing up more time and energy to focus on the aspects of life that matter most to them.
This is a hypothetical illustration and is not intended to reflect any actual outcome. This case study is for illustrative purpose only. Individual cases will vary. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.
Prior to making any investment decision, you should consult with your financial advisor about your individual situation. This is a hypothetical story and not indicative of any specific situations or client. It is presented only as an example and not intended as investment advice. Investing involved risk and there is no assurance that any investment strategy will be successful.
See How Our Experience Can Help You
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