Financial Planning Case Studies

Their Story

John, a long-time owner of a 30-year-old IT company, was referred to us by their corporate attorney as he was getting ready to sell his business. Despite having substantial savings in his 401k and a sizable cash position, John was afraid of the unknown, as the thought of exiting had been on his mind for quite a while. However, he was always too busy to put any serious time and thought into it, let alone understand the details involved in implementing a truly successful exit.

We spent 12 months going through our 12-Step Business Transition Planning process and found six major areas in which he could improve the absolute value of his company, all while increasing its multiple through de-risking, re-casting, and normalizing the company’s books, initiating a business continuity plan, implementing new systems and processes, decreasing owner reliance, aligning the leadership team, and ensuring retention incentives were in place for management.

This plan was then implemented with the assistance of another member of our team – a qualified Transition Plan Implementation specialist – who held John’s hand through the process and helped him implement every step along the way, all while meeting with management and executive staff in multiple meetings over the course of the following year.

Once the proper buyer type was determined, the company was put up for sale with one of the top business brokers in central Ohio, and it was ultimately sold in less than six months for a multiple that was more than 50% higher than the original indication of value.

John and Eileen’s concerns about taxes were further mitigated between a combination of structuring the sale in a manner that was fair to both parties involved, implementation of charitable planning strategies as we re-structured their estate plan with the help of our attorney, and with the use of high-interest-bearing, risk-free investments to grow the assets that were earmarked for taxes between sale and when the taxes were due.

Their retirement plan looked beautiful, and while they were technically “self-insured” and didn’t need long-term care insurance, they chose to purchase a hybrid policy that covered them and their family, whether they ended up needing it later in life or not.

Today, after early retirement, the couple enjoys life in two locations, meeting with us semi-annually to review their financial plan as their lifestyle evolves over the years.

Their Story

Retired couple Brian and Emily, both successful professionals, came to us with concerns about sustaining their retirement, market volatility, and legacy planning for their children from previous marriages.

We developed a comprehensive retirement income plan for them, aligning their investment model with their financial goals and risk tolerance. We stress-tested their plan against potential early death scenarios at different ages.

Despite our life and long-term care insurance analysis, they chose not to invest in these due to their age, health, and family history.

For tax and estate planning, we connected them with one of our trusted attorneys. Together, we crafted a plan that protected each spouse and ensured their individual savings would pass down their respective bloodlines.

We continue to oversee their spending and retirement income and regularly revisit their lifestyle goals to accommodate any changes over time.

Her Story

Michelle, a successful executive referred to us by a long-standing client, needed comprehensive planning for her personal, professional, and financial life.

We drafted a retirement plan, revealing that her significant savings allowed for early retirement and a later transition to running her own consulting business. Her investment management model was more conservative due to her excellent savings habits. Social security planning was straightforward, given her family’s longevity, and we arranged her non-qualified stock options and grants for tax efficiency.

We established a college savings plan covering half of her children’s in-state tuition costs, prioritizing her retirement planning.

In terms of insurance, Michelle was already well-covered for life and disability thanks to her savings. After reviewing available policies, she chose to replace some term insurance with permanent life insurance that included a long-term care benefit and the option to withdraw the cash value.

Finally, to secure her children’s future in case of her premature death, we worked with a trusted attorney to devise an estate plan.

Despite its complexity, Michelle’s case was a rewarding challenge for us.

Their Story

Seven years ago, Colin, a firefighter, and Madison, a homemaker, sought our help for retirement, insurance, and social security planning. Unbeknownst to us, prior advisors had overlooked significant opportunities.

After developing their retirement plan, stress-testing for Colin’s potential early death, and recommending an investment portfolio, Colin revealed that he had a chance to buy back his 10-year service from his previous job as a police officer. Previous advisors had suggested investing the money instead.

Aware of the Deferred Retirement Option Plan (DROP) benefits for police and firefighters, we halted the transfer process and asked Colin to get a quote for the buyback cost and its potential benefits.

The results were astounding. Purchasing the 10-year service would significantly increase Colin’s monthly pension and qualify him for a $500,000+ retirement check through DROP after seven more years of service. The catch? Over 90% of their retirement savings were required for the buyback. We recommended and facilitated this move.

In 2019, our strategy paid off, dramatically increasing their retirement income, quintupling their liquid net worth, and ensuring a secure retirement and estate for the next generation.

*This success story was featured in the Wall Street Journal’s Dow Jones Newswires in 2012.

Her Story

Lisa, a successful individual in the IT sector, came to us filled with anxiety about financial planning and investing. Despite her conservative spending and substantial retirement savings, her fear of the financial market was palpable.

Through our Wealth Management Process, we crafted a comprehensive financial plan, including a social security timing analysis and a conservative investment portfolio. Our analysis showed that her concerns about long-term care and life insurance were unnecessary due to her significant savings. However, out of caution, she chose to maintain her small life insurance policy.

Our discovery process revealed urgent estate planning needs. Lisa’s life insurance and healthcare directives still named her ex-husband as the beneficiary and decision-maker. We collaborated with a trusted estate planning attorney to revise her plans and spent considerable time educating Lisa about the stock market and our strategies.

Initially, we held quarterly meetings to build trust and understanding. Over time, Lisa’s anxiety diminished so much that we now struggle to schedule even annual meetings. While we’re proud of her progress, we believe in the importance of regular meetings with all clients to ensure their financial plans remain optimal.

Their Story

David and Christine, after attending one of our talks, sought guidance for David’s transition from a Fortune 500 executive to an entrepreneur. Christine managed the household and their children’s busy schedules.

The fear of starting a business is substantial. We used our experience as a family-owned business to navigate the risks and challenges. We developed a comprehensive financial plan, starting with an analysis of David’s 401(k), grants, and stock options. The timing was crucial due to vesting periods requiring David to work a few months longer than planned.

We also ensured they had enough cash to support their family during the start-up phase of their business. The plan involved handling various business-related tasks such as payroll, company retirement plan, insurance, and a multifaceted estate and business succession plan, including a trust and a buy/sell agreement.

With their CPA’s help, we planned for their children’s college education tax-efficiently, using previous education savings and a strategy involving the compensation of minor children. This achieved their college savings goals while minimizing their tax burden.

David and Christine continue to meet with us semi-annually to update their plan as their business grows.