Alleviate the client’s concerns and develop a transition plan to move him towards retirement. He was uncomfortable with the advice that he had been receiving over the years especially because many of his contemporaries had experienced hefty tax liabilities and lost money during market volatility.
True North’s Corporate Executive Services team developed a comprehensive strategy to transition the uncapped wealth in stock options to a well-diversified portfolio to meet a variety of long-term needs. Actions taken:
- Forged a strategic plan to manage his concentrated stock position, maximize gains and minimize risk and tax consequences
- Created easy-to-implement exercise and hold/sell strategies
- Implemented a variable forward sale utilizing non-captive derivatives desk – maximizing liquidity and locking in floor and threshold prices for the position
- Coordinated a line of credit to facilitate some private investing and more easily manage cash flow needs
- Introduced and helped construct a charitable and wealth transfer strategy to fulfill philanthropic desires and leave a legacy for the family
- Implemented a diversified portfolio based on retirement goals and current needs
With a long-term plan in place, the client felt comfortable retiring from his executive position to concentrate on other business ventures.
Additionally, he was able to minimize his risk and tax consequences while maximizing his gains through the strategies recommended by True North. Today, his portfolio is more diversified and he has a plan in place for his family and for charitable giving.