Meeting Clients' Needs
Guidance after Losing a Spouse
A 75 year-old client lost her husband to cancer. She had minimal experience managing their $4 million of investments. Over 6 months, we guided her through the distribution of her husband’s estate, worked with her attorney to implement the terms of her husband’s trust, and adjusted her portfolio to reflect her lower risk tolerance and higher income requirement. Over the last twenty years, we have helped over 50 widows and widowers through the difficult transition after the loss of their spouse.
Planning for Sale of Major Asset
A couple from New York sold their largest asset for a $6,000,000 capital gain. Prior to sale, we advised them to consult a Florida estate attorney, establish their Florida residency, and create revocable trusts to avoid probate and insure financial privacy. We worked closely with the couple’s CPA to evaluate various tax scenarios and we designed a financial plan to secure their needs into old age. We built a customized portfolio of dividend stocks and bonds that adhered to the couple’s socially responsible investment philosophy.
Working Capital for New Company
A 62 year-old entrepreneur started a heath care consulting company. His $7,000,000 portfolio was at three firms. He had over $1,500,000 of capital gains and he was reluctant to sell these assets to fund the new venture. We recommended he consolidate his accounts and utilize a $1,000,000 securities-backed credit line for working capital. The new company grew, and the credit line was increased to $3.6 million. Our team has secured over $90 million of securities backed credit lines for our clients.
A Family Education Legacy
A 67 year-old widow in Virginia had 11 grand-nieces and grand-nephews, but no children of her own. She was close to her extended family, and she wanted to help the next generation of her family. We advised her to begin making annual planned gifts into 11 investment accounts for her grand-nieces and grand-nephews. Over a decade, her annual gifts, coupled with the growth of the investments, funded 11 four-year college educations. Through this gifting, her beneficiaries finished college with no student loans, and her estate was reduced enough so that no estate tax was due at her death. Over the years, our clients have funded nearly 100 college educations through gifts to trusts, custodial, and 529 college savings accounts.
A Charitable Legacy, with Income for Life
A 61 year-old retired engineer from Connecticut owned $1.1 million of Microsoft stock with an unrealized gain of $850,000. He and his wife had charitable intentions, but needed more income during their retirement. On advice, they created a Charitable Remainder Trust and donated low cost basis Microsoft stock to the charitable remainder trust. The stock was sold, and we advised on diversifying the $1.1 million to produce an income stream for the rest of their joint lives. The husband has since died, and the surviving spouse will continue to enjoy annual income for life. The couple’s favorite charities will receive the remainder of the trust upon her death. We actively engage our clients in conversations about their charitable plans to make the world a better place.
Rapid Liquidity after Hurricanes
Hurricane Sandy destroyed the waterfront homes for two of our Northern clients. For them to avoid selling taxable stocks in order to pay for repairs, we advised both couples to pledge their eligible investments and establish securities-backed credit lines. Unlike their neighbors who were forced to sell assets or wait for insurance payments, our clients were able to act quickly and secure general contractors to begin rebuilding because they had cash readily available from their credit lines. We advise many clients in hurricane-prone regions to consider a stand-by line of credit.
Concentrated Stock Diversification
A 55 year-old corporate executive from Atlanta owned stock in his employer, a private company. When the company went public, over 85% of his $26 million net worth was concentrated in one stock. Over several years, we systematically sold his concentrated stock position to reduce his risk, and reinvested the sale proceeds in a diversified portfolio of stocks, bonds, and alternative investments. During the financial crisis, the stock of his former employer fell dramatically, but due to diversification efforts to reduce the single-stock risk, the executive’s portfolio was better protected.
Northern Couples Becoming Florida Residents
A retired couple from Wisconsin with a $6 million net worth asked us to explain the potential advantages of becoming Florida residents. We guided them as they implemented their lawyer’s advice to establish Florida residency. When they came to us, the couple had 26 accounts at 4 investment companies, with little coordination between the firms. They consolidated all their accounts with our team, reduced their 26 accounts to 7, and funded their new Florida revocable trusts in the process. By consolidating, they simplified their record-keeping, adopted a comprehensive investment strategy with quarterly monitoring, and reduced their annual advisory fee by 15%.
Over the last two decades, dozens of Northern visitors and clients have consulted us about the advantages of Florida residency. We work collaboratively with a network of board certified Florida estate attorneys to help clients take advantage of Florida tax laws.
Second Marriages and Personal Finances: ‘His, Hers, and Ours’
An active 82 year-old widow and an 84 year-old widower got married, the second marriage for both. They wished to buy and remodel a new home together, but being conservative, they each wanted to sell their existing home first. After nearly a year with no progress selling their properties, we recommended a securities-backed line of credit for $1,000,000. The couple quickly bought their new home and began remodeling. A year later, the other two homes were sold and the line of credit was paid off.
Advisory services offered through Hayden Royal LLC, an SEC-registered investment advisory firm. Price Wealth Management may only conduct business with residents of the states for which they are properly registered.