AGE: 66, 64
Profession: Retiring Business Owner
Primary Goal: Create a reliable, tax-efficient income stream in retirement, and optimize investment strategy while optimizing their legacy.
Background: Scott and Angie are in the process of selling the family business they built twenty years ago. After putting so much time and energy into the business over the years they are ready to step away and enjoy their retirement.
They have three adult children who are all married with their own careers. None of their children had a desire to work in the family business so Scott and Angie are selling the business to a third party.
They are receiving an installment buy-out over the next three years to reduce the tax burden.
Scott and Angie want to create an investment strategy that enables the lifestyle they dreamed of in retirement and make sure they don’t run out of money.
For years they have worked with a trusted CPA and attorney but they managed their investments themselves. Most of their wealth was tied up in the business so they never explored partnering with a professional. While Scott and Angie are confident in their abilities they don’t want to spend their time managing investments. They wonder if they will be too emotional during the market’s ups and downs and as they age they want a steady hand to guide them and work with their children as well.
They were recently referred to friends’ financial advisors, but none specialized in helping business owners and their families. Also, Scott and Angie have property in three different states, Maryland, Florida and Colorado. They split time between all three states. It makes it hard to meet in person with a financial advisor. They were looking for a Certified Financial Planner™ professional who would meet with them virtually and used technology to make retirement planning easier to understand.
Scott and Angie are looking to optimize the seven-figure business sale proceeds and their retirement plan assets to generate income to live on in a tax-efficient manner.
It was important to Scott and Angie to have a trusted partner that knew their situation well. They didn’t want a cookie cutter approach. It was also important that the advisor they chose was experienced but not looking to retire soon. They didn’t want their advisor retiring at the same time they were. They were looking for a partner that would guide them and allow them to live their retirement without the stress of managing all aspects of their finances.
The first step was to identify their current assets and the payout post business sale. Working together with Scott and Angie’s long-time accountant, they identified the tax challenges now and in the future. They created an Asset-Map using software provided by Celestial Wealth Management. The Asset-Map visually organized all of their finances in a clear one-page graphical layout that concisely showed where they currently stood.
Scott and Angie were excited about the future but nervous about the relationship with a new financial advisor and anxious about how to turn the sale of the business into a permanent income stream. As they opened up about their goals and tolerance for risk, they became more and more comfortable working with a trusted partner.
While working to create a retirement income plan and investment strategy, Scott and Angie read Colin’s eBook, “What to do After Selling Your Business”. Scott and Angie found a new level of comfort because of how well Colin understood what they were feeling emotionally and the questions they had of how best to navigate retirement.
Scott and Angie collaborated with Celestial Wealth Management and:
Scott and Angie were travelling between Colorado, Florida and Maryland seeing friends and spending time with their grandchildren. They had a newfound confidence in their retirement income and investment strategy that could allow them to do what they wanted, when they wanted, without worry. Their plan is reviewed regularly and adjustments made depending upon new tax laws to take advantage of planning opportunities to maximize their net worth.
*Please Note: The above Case Study is hypothetical-not involving an actual Celestial Wealth Management Client. Case Studies illustrate the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The Case Studies are designed to generally illustrate how we may provide our services to our clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the Case Studies are not to be construed as an endorsement of Celestial Wealth Management by any of its past or current clients, nor any assurance that we may be able to help any client achieve the same satisfactory results. To the contrary, none of the Case Studies should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Celestial Wealth Management is engaged, or continues to be engaged, to provide advisory services.
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