The company Caroline worked for just went IPO and she has a lot of stock-based compensation that is subject to lockups and blackout periods. Because her company went IPO, several financial advisors have been reaching out to her, but she didn’t know where to start.
Caroline owns a home with a mortgage. She came from a working-class family and has elderly parents who need assistance. On the financial front, she has been contributing to her 401(k), but is not sure how much she needs to retire or when she can retire. She also has made various stock investments in her brokerage account.
How We Helped
Caroline was encouraged by a colleague to speak with the Keystone team. Based on the information she provided, we conducted a goals and needs analysis that helped shed some light on Caroline’s unique opportunities.
|Goals and Needs Analysis||Opportunities|
|Protect Children||Set up term insurance and disability insurance, designated guardians, set up a trust to benefit children, established core estate documents|
|Stock Based Compensation Management||Trading plan created to reduce single stock concentration risk, while abiding by the lockups and blackout periods, with the ultimate goal to reduce concentration risk|
|Retirement Savings||Consolidated old 401(k) accounts Caroline wasn’t paying attention to, started to maximize contributions to current 401(k), maximized employee stock purchase program|
|Caring for Parents||Keystone introduced a health care specialist to determine best options for her parents, coordinated with a tax advisor to claim all available deductions|
|Mortgage Review||Refinanced mortgage to achieve a better interest rate and cost savings|
|Retirement Planning||Established a financial plan detailing her goals, her current net worth, the expected income/expenses/taxes/investment returns, to show her the path to her retirement|
|Portfolio Management||Concluded her portfolio did not match her risk tolerance and restructured her portfolio to match her risk tolerance and return objectives|
DISCLAIMER: THIS CONTENT IS PORTRAYING A HYPOTHETICAL CASE STUDY AND NOT BASED ON ACTUAL INDIVIDUAL CLIENT RESULTS.