.webp)
Their Objectives
Strategically set aside funds for larger “forever home”
Nail down cash flow & make smarter decisions around equity comp
Develop a plan for the tax-efficient disposition of large position in employer stock
Implement strategies to reduce lifetime tax bill
Support charitable causes important to them while maximizing the tax benefits
Make sure they’re on-track for an early retirement at age 55
Their Outcomes
A plan to use loss carryforwards from the last bear market to begin selling off employer stock, offsetting much of the taxable gain. This reduces their concentrated position in “ABC Company” stock while raising funds for the down payment on their new home
A multi-year tax projection & cash flow strategy that includes significant contributions to the deferred compensation plan. These deferrals created a perceived cash flow issue, so we “replaced” them with the RSUs that were vesting each January
Implementation of a direct-indexing strategy with a portion of the portfolio, harvesting tax losses throughout the year & allowing us to offset even more realized gains from “ABC Company”
A charitable gifting strategy that includes donating low-basis shares of “ABC Company” stock to a donor advised fund. We front-loaded 10 years’ worth of donations into a single tax-year to help offset the impact of a large exercise of non-qualified stock options (NQSOs)
A financial snapshot of where they stand relative to their goals, and a specific action plan for reaching those goals more efficiently
These case studies are hypothetical descriptions & stories that do not involve an actual client of Fair Asset Management. They do not reflect actual performance or results for any specific client. They should not be construed as a guarantee that a prospective client will experience the same or a certain level of results or success if Fair Asset Management is engaged to provide investment advisory services.
Their Objectives
Make sure an extended retirement of 40 years is sustainable
Obtain quality, affordable health coverage before Medicare starts
Develop a strategy for the tax-efficient drawdown of their nest egg
Implement other strategies to reduce lifetime tax bill
Gradually transfer wealth to children to help them achieve their goals
Their Outcomes
A financial snapshot of where they stand relative to their goals, and a specific action plan for reaching those goals more efficiently
A retirement distribution strategy that minimizes taxable income, allowing them to capture subsidies covering most of their healthcare via ACA premium tax credits
A specific 10-year plan to fill-up lower tax brackets with Roth conversions between ages 65 (start of Medicare) and 75 (start of Required Minimum Distributions)
An overhaul of their existing portfolio, placing tax-inefficient bonds into tax-deferred accounts. This helps reduce current taxable income, as well as the size of future Required Minimum Distributions
A plan to reduce future estate tax liability by making tax-efficient gifts to adult children up to the IRS annual exclusion amount
These case studies are hypothetical descriptions & stories that do not involve an actual client of Fair Asset Management. They do not reflect actual performance or results for any specific client. They should not be construed as a guarantee that a prospective client will experience the same or a certain level of results or success if Fair Asset Management is engaged to provide investment advisory services.
.webp)
Their Objectives
Develop a retirement income strategy that covers their needs for life
Navigate the complexity of maximizing what they can get from Social Security
Understand what to do with a cash value life insurance policy they no longer need
Gain clarity on the lump sum vs. monthly annuity options on Julia’s pension
Have confidence they can maintain their standard of living no matter what the market throws at them
Their Outcomes
A detailed Social Security strategy with Julia claiming her benefit immediately – collecting 6 months’ worth of retroactive backpay – and Ken continuing to delay until age 70. This maximizes the higher wage earner’s benefit, which continues as long as either spouse is alive, protecting Julia if Ken were to pass away first
Implementation of a “1035 exchange” of the unneeded life insurance policy for an annuity that is immediately annuitized to begin receiving lifetime income
An objective pension analysis comparing the internal rates of return (IRR) of the various annuity options. This helped put the “tempting” lump sum option into perspective and empowered Julia to select a monthly income option with confidence
A plan to increase equity exposure in the portfolio to cover their discretionary goals, as well as aspirational/legacy wishes, since their needs are now covered by guaranteed income sources (Social Security, annuity, pension)
Regular monitoring of their financial plan, including stress tests and Monte Carlo simulations, that helps ensure their money outlives them and not the other way around
These case studies are hypothetical descriptions & stories that do not involve an actual client of Fair Asset Management. They do not reflect actual performance or results for any specific client. They should not be construed as a guarantee that a prospective client will experience the same or a certain level of results or success if Fair Asset Management is engaged to provide investment advisory services.
Work with a CERTIFIED FINANCIAL PLANNER® professional to make better, more confident, financial decisions:
Click to Get Started →.webp)
.webp)