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.