Successes

New WealthTax DeficienciesEstate ConcernsMajor Life Change

New Wealth*

Our clients were referred to us from a local attorney. They had worked with an advisor for a number of years, but never really got the service they felt they needed, nor deserved. They received a large amount of wealth from the sale of a bank and asked us for help.

THE CHALLENGE:

To assist them, not only in managing their assets, but in managing their overall financial plan.

ACTIONS:

-We engaged with their CPA and attorney to understand what they already had set up and what could be done to improve their overall plan

-We looked at all of their investments in detail to help them understand what they had and how it worked

-We formulated a plan to consolidate and eliminate over-lap in their investment holdings

-We visited with them about the benefits of moving to a state with more tax benefits, from the point of view of saving tax dollars based on their current net-worth and wanting to pass this on to their children in the future

-We made sure their insurance coverages were adequate and that they had coverages for unexpected items that could occur in the future -We created a plan that helped them understand where their cash flow would come from in retirement and reviewed strategies that they could consider taking advantage of in retirement

-We worked with them and their other professionals to create a cohesive team of experts that have created an open line of communication and are focused on putting the clients’ interests first on all levels of their financial plan

SUMMARY:

These clients moved all of their transferable assets over to us and are now able to finally relax knowing that they have a team of trusted professionals, whom communicate with each other, keeping an eye on their overall plan and looking out for their best interests above all else.

*Obviously, these outcomes cannot be guaranteed, though we vow to make all decisions in the best interest of our clients.

Tax Deficiencies*

The clients have a successful business, and the employees were working almost 7 days a week. They had a net worth of $60 million but were working almost every day to keep up with the business. The clients felt their taxes were too high, they had no succession plan, and they were concerned about protecting their wealth. They felt their current advisers were not looking out for them and were not looking at the bigger picture. We were brought into meet with the clients by one of our CPA’s to try to find a solution.

THE CHALLENGE:

To create a comprehensive plan to help improve their tax efficiency, preserve and grow their wealth, and create a succession plan.

ACTIONS:

-Worked with their CPA to develop a stronger retirement plan with several features that will allow them to maximize their pretax dollars

-Work with this family, along with their trusted CPA, to continually minimize taxes on the personal and business levels

-Focused on getting to know the clients on a much deeper level than their previous advisors had and asked them tough questions on what they really wanted to do and what they felt their planning needs were

-Got them connected with a group that worked along-side their CPA to assist them with additional tax credits for their company’s benefit

-Counseled them as they transitioned their children into the business as a part of the succession plan that was created -Worked with professionals to help them create a strong employee benefit package that would help them hire and retain employees

-Worked alongside our estate planning attorneys to develop a comprehensive estate plan to protect the inheritors from remarriage of the surviving spouse as well as protect the children from loss of their inheritance due to divorce or bankruptcy

-Provided them with the comfort of knowing that they don’t need to have all the answers and knowledge. They trust our team to find the answers and look out for their best interests. We’re here to make sure they reach their goals, as a family and a business.

SUMMARY:

Over 3 years of working with this family, Foundations has helped to give them a better sense of direction and a feeling of comfort and trust with the team they have in place. They realize we individually don’t have all the answers for all of their questions and concerns, but they do know with our extensive network of connections we can help with the simplest to the most complex questions.

*Obviously, these outcomes cannot be guaranteed, though we vow to make all decisions in the best interest of our clients.

Estate Concerns*

Our client was about sell his private business to an international company, and encounter all of the complexities that that entails. He was offered $80 million dollars for the company in 2009.

THE CHALLENGE:

We needed to preserve and manage his wealth to benefit generations to come. The client needed a comprehensive plan that would provide him with a lifetime income and protect his assets for his family’s lifetimes.

ACTIONS:

Leveraging our experience with clients who have sold private companies, Foundations and his CPA adviser formulated a comprehensive plan to help him navigate this transition and provide for his family. Actions included:

-Structuring the sale to payout over a few years to lessen the tax burden

-Focusing on the long-term and prudently deploying capital during the downturn

-Formulating a plan to diversify the client to minimize exposure and provide growth and income to meet future needs

-Working in tandem with the client’s CPA and attorneys to implement appropriate legal and tax strategies to optimize the investment and generational transition strategies

-Counseling his children and grandchildren about the responsibilities of wealth

-Using outside advisers to continue to find the best way to protect the client’s assets

SUMMARY:

The sale of the business prior to the recession was a difficult time for our client. We were able to provide guidance, stability and perspective. Today, our client has a plan to meet both short and long-term goals. With our help they have a plan in place to leave and legacy to help generations into the future.

*Obviously, these outcomes cannot be guaranteed, though we vow to make all decisions in the best interest of our clients.

Major Life Change*

We met with a couple who were facing a difficult situation. The husband had just been diagnosed with cancer, and due to this, was forced to sell his business to focus on his treatment. The concern about protecting the surviving spouse was overwhelming to him. They came to Foundations with a $5 million (mostly illiquid), estate, and no will. They had multiple investment accounts, insurance policies, and bank accounts scattered with several different institutions.

THE CHALLENGE:

To help ease their worry by developing a plan for them that would show them how they could dissolve their business, consolidate their accounts, and develop an income they could live on. We had to develop an estate and tax plan that would protect their estate from excess taxes, erosion, and bad advice.

ACTIONS:

We, along with their CPA, developed a three-year plan to transition them into their new lifestyle. Our actions included:

-Meeting, as a group, with an estate planning attorney to put the estate plan in place

-Recommending the client move their business from Minnesota to South Dakota to save on taxes

-Counseling them on how to sell the business and what value they should place on it

-Working with the fiduciary of the company retirement plan to find the best possible way to close this down

-After the business move, interviewing auctioneers to help them sell the equipment

-Visiting with the clients and Social Security to make sure they maximized their benefits

-Meeting with the clients and health care experts to make sure they have the right coverage for their needs

-Spending time focusing on educating the clients on different solutions for their risks

-Consolidating accounts to simplify their lives

SUMMARY:

Over the three-year period, Foundations was able to help the clients feel at peace and help protect the clients. Since then, the husband has passed away. The surviving spouse is now living comfortably on the income she needs to maintain her lifestyle. We worked very hard on educating her every step of the way and also being there when she just needed someone to talk to. We meet with the client and her CPA adviser quarterly to talk about ways to improve her situation and continue to help her sleep at night.

*Obviously, these outcomes cannot be guaranteed, though we vow to make all decisions in the best interest of our clients.