Keystone Global Partners

Forward-Thinking Wealth Management For Tech Founder

Meet Brian, 32

Living in New York City, Brian spent 5 successful years as an employee at a large tech company before branching off and building a company of his own. In the past few years, Brian’s company has been gaining a lot of traction. In fact, he’s just completed a Series C round and thinks the company will be acquired or IPO within the next two to three years.

The Problem?

Brian knows the sale of his company will be meaningful for him, but it’s the first time he’ll be having an exit and he just doesn’t know what to expect. He’s always been hardworking, leaving little time to devote to his personal finances. He’s made a decent salary but hasn’t accumulated as much savings as he knows he should.

Brian’s Goals

Brian has been dating his girlfriend for a few years, and he’s ready to pop the question soon. He’d ideally like to get married next year and purchase a home as well. In the back of his mind, Brian knows he should be saving for retirement too, but isn’t sure how important that is when he has a wedding and future house to think about.

How We Helped

Brian’s company has been getting a lot of press recently and as such, several financial advisors have been reaching out to him. He was encouraged by a friend to speak with the Keystone team. Based on the information he provided, we conducted a goals and needs analysis that helped shed some light on Brian’s unique opportunities.

Goals and Needs Analysis Opportunities
First Time Selling a Business Personal tax planning in advance to maximize his after-tax outcome, evaluate if stock qualifies for QSBS making first $10mn of his stock sold exempt from Federal taxation
Upgrade to Better CPA Education on how his taxes and tax opportunities will change a lot in the coming years, introduction to a high-quality CPA
Needs Extra Cash for Wedding and House Walkthrough on options like taking money off the table via a secondary transaction or financing based on his ownership in company, etc.
Lacking Estate Plan Introduce him to a vetted estate attorney and guide him through the process of creating core estate planning documents such as trust, power of attorney, pour-over will, and health care directive
No Formal Cash Flow Planning or Budgeting Set aside an emergency fund, cash flow planning to calculate wedding budget and house-buying power, access to Keystone personal cash flow and balance sheet software
No Retirement Services Setup 401(k), determine asset allocation
First-Time Home Buyer Guide on how much to spend on a house, introduction to high-quality real estate agent, help obtaining best mortgage financing. Pay down credit cards, stop further credit inquiries
Lack of Time Engage a financial advisor who can quarterback his investments, planning, and taxes
Marriage Considerations Education on joint tax returns, pre-marital planning considerations

DISCLAIMER: THIS CONTENT IS PORTRAYING A HYPOTHETICAL CASE STUDY AND NOT BASED ON ACTUAL INDIVIDUAL CLIENT RESULTS.

Will you help me solve any and all financial problems I may encounter?

Yes, and it’s likely we’ve helped others solve similar problems as well such as business sales, QSBS, tax minimization, estate, 401(k) plans, IRS audits, family deaths, disability, real estate, debt, social security, Medicare, health insurance, college, gifting, and most other financial issues.

What types of clients do you specialize in?

We work specifically with tech founders.

What services do you provide?

A relationship with Keystone involves comprehensive financial planning around retirement, insurance, estate planning, tax planning, and investment management.

How do you help clients implement their financial plans?

We firmly believe that even the best financial plan is of little value until it’s implemented. To help you achieve your goals without feeling stressed or overwhelmed by the noise along the way, we will work together to make the necessary decisions then we take care of the execution.

Are your recommendations truly in my best interest?

As an SEC Registered Investment Advisory firm, we are held to a fiduciary standard, which legally requires us to do what is in our clients’ best interests. This differs drastically from some of our competitors who are only held to the “suitability standard,” meaning that our competitors can make recommendations that are suitable but may not be in the clients’ best interests. Our commitment to an honest and ethical culture has allowed us to build deep, trusted relationships with our clients.

What are all the different ways you get paid?

We are only paid via one management fee. We believe this allows us to have an unbiased framework to select the best investments for you and to give you advice tailored to your needs, not ours. We believe compensation drives behavior, and the way someone is paid influences the work they do. Many financial firms have complex fee arrangements; we do not.

Why would I choose you as my advisor and not do it myself?

There’s certainly a possibility that if you put enough focus and energy into it, you could do it all yourself. But like everyone else, your time is limited and most people prefer to focus on family or business. We’re here to free up your time while leveraging our wealth of experience in addressing concerns, presenting solutions, and working toward your financial goals.

What are the benefits of working with an independent advisor compared to a bank or large advisory firm?

Our independent and conflict-free approach allows us to find the best solutions for our clients. This gives you the advantage since larger firms might be compelled to make specific recommendations, sell proprietary products, or may be restricted in the advice and services they offer. We offer guidance customized to your needs and goals which is a personalized level of service, care, and attention larger firms just can’t provide.

Do you use proprietary funds?

At Keystone, we do not use proprietary products. We do not receive commissions or backend fees from any third parties. We do not earn compensation for recommending one fund vs. another. We believe this allows us to have the most unbiased framework to select the best investments for you and to provide advice tailored to your needs, not ours.

Where do you keep my money and how can I see it?

For your convenience and safety, we use Charles Schwab as the custodian for the majority of our client assets. Schwab administers more than $7 trillion dollars and we selected them to care for yours as well based on a variety of criteria including safety of assets, financial strength, and ease of use. As custodian, Schwab holds your funds and provides direct reporting to you. Your funds will be held in accounts under your name and can be viewed anytime online at Schwab.