A close friend sought our advice as his business grew and he began receiving significant interest from potential buyers. At the time, the majority of his net worth was represented by the value of his company. However, this presented an ideal opportunity for us to work with him on estate planning strategies. Ultimately, we brought his CPA into the discussion and introduced an attorney to help craft solutions for asset protection, tax mitigation, and prudent discretion for younger beneficiaries. These initiatives resulted in the establishment of a family limited partnership and multiple trusts. From the client’s perspective, it proved advantageous to develop the relationship with Peachtree and implement strategies prior to the sale of his business.
As the relationship with Peachtree grew over the years, the family wanted our advice regarding retirement planning. This allowed us to utilize our proprietary planning software to run various models and scenarios to address the age-old question: “When can I retire?” With the plan in place, the family remains on track to achieve their retirement and investment objectives.
As the estate wound down, the husband was also approaching his retirement date. He had been an executive for a large multinational company for over twenty years. Though they were looking forward to enjoying their newfound time together, the couple had some trepidation about the financial ramifications of retirement.
Their assets were scattered among several different brokerage firms and banks that resulted in unnecessary complications when managing and monitoring their investments. We simplified their financial picture by consolidating their capital into fewer accounts, all held by one custodian. At this point, we helped initiate the rollover of his company retirement plan, which was sizeable after many years of service to his employer. As a further benefit, the investment options at Peachtree were far more robust than those offered by the company retirement plan. Additionally, he was due to receive some deferred compensation in the form of cash and stock. Planning discussions with the couple were constructive here in order to consider the timing and tax consequences.
Once the account structure was simplified and consolidated, the couple could more easily measure the value of their ledger. Together we drew up a spending plan and implemented an investment strategy consistent with their objectives. With this road map in place, the couple are moving confidently into the newest phase of their lives with much greater peace of mind.
The results of our efforts thus far have been an improvement in the performance of their investment portfolios and a significant transfer of wealth to the next generations of the family resulting in substantial estate tax savings. Additionally, the family office services provided by Peachtree have improved communication amongst family members and created some workflow efficiencies with their other advisors (attorney, CPA, banker, etc.).
- establish an Investment Committee
- develop an Investment Policy Statement
- set meeting schedules and reporting expectations
- align the investment objectives with the charitable mission
Establishing this framework allowed the charity to grow the endowment through donor cultivation efforts and investment success.