Financial Problems Solved

See what our clients have achieved in our case studies

• Client saved over $300,000 in capital gains tax. Click to read Case Study #1

  Dr. Smiles (68) – Owns two medical buildings. $5 million net worth. Married, three adult children.

  Overview

  Dr. Smiles is 68 and planning to retire and move out of the state with his wife who is 63. He owns two medical buildings with a business partner. His goal is to sell his interest in the two medical buildings to his business partner and reduce his capital gains tax. Dr. Smiles and his wife have enough money to enjoy their retirement without touching the proceeds from the buildings. Dr. Smiles reached out to us to see if we could help him and figure out the best approach based on his unique situation.

  Process

  We met with Dr. Smiles and Mrs. Smiles over a series of meetings to further discuss their situation, objectives, values, and goals. We completed a financial plan with several scenarios on how to allocate the proceeds from the sale of the buildings. We looked at the success rate of each scenario with the client to determine which option made the most sense for them. We also had discussions with the client’s tax advisor to ensure everyone accepted the plan.

  Result

  We recommend that Dr. Smiles and Mrs. Smiles should part a portion of the proceeds from the medical building and invest in a qualified opportunity zone. This strategy resulted in the client savings over $300,000 in capital gains tax. This strategy allowed the client to continue investing in real estate through a Qualified Opportunity Zone strategy and continue receiving income from the strategy.

  We also advised the client on when to start pulling social security to optimize their income. We discussed updating their estate planning documents once they move out of state to at least add codicil. We also reviewed their insurance needs and recommended cancelling buy-sell policies with his previous partner. For investment, we did an X-ray of their current portfolio and made recommendations to modify the allocations to meet their goals.

  We set up regular ongoing progress review meetings with the client to ensure that the financial plan we co-created continues to be monitored. If there are any changes to the plan, we will adjust it as needed.

   

• Client saved of over $800,000 in capital gains tax with Custodian Account Consolidation. Click to read Case Study #2

  Ms. Real Estate (66) – Owns a 20 Unit Apartment Complex and Ten Rental Homes. $16 million net worth. Widowed, one adult child with a tendency to overspend money.

  Overview
  Ms. Real Estate is 66 and would like to start winding down her real estate portfolio. She was in business with her husband who recently passed away but he was handling most of the real estate business. She does not want to deal with the day-to-day operation of running the real estate portfolio by herself. She has been receiving offers to sell the 20-unit apartment complex. She wants to start traveling and enjoying herself. Her goal is to reduce her capital gain tax and create an income stream to be able to live off of. Her CPA recommended that she should contact us to see if we can help her.

  Process
  We met with Ms. Real Estate over several meetings to discuss her situation. We asked her a series of questions to better understand her situation, objectives, values, and goals. For her, tax savings were the top of her list to accomplish. We talked about the different offers she was receiving for the apartment complex and her desires with the sale. We also reviewed her investment account statements and we figured that her deceased husband had a volatile portfolio with investments in gas, oils, and options.

  We also completed a financial plan with several scenarios for allocating the proceeds from the sale of the apartment complex. We looked at the success rate of each scenario with her to determine which option made the most sense for her. We also discussed with the client’s CPA and estate planning lawyer to ensure everyone accepted the plan.

  Results
  We recommended that Ms. Real Estate should do a structured installment sale for a portion of the sales proceeds from the apartment complex. This will create an income stream that will pay out until the end of her life expectancy. This income is enough to cover her living expenses. This strategy helped the client reduce taxes on the profit of the sale by deferring the tax on the gain into later tax years. This strategy resulted in the client’s savings of over $260,000 in capital gains tax.

  We also uncovered that she had not transferred the investment accounts under her name after the passing of her husband. We helped her consolidate her accounts into one custodian instead of eight different custodians and made sure the basis was properly adjusted. This helped the client avoid around $800,000 in capital gains tax. We helped her reduce over $1MM in capital gain tax in the first year working together with us.

  We also completed an analysis of her current portfolio and made recommendations to modify the allocations to meet her goals and risk tolerance.

  We discussed updating her estate planning documents since her husband has now passed. We helped her have a trust with a corporate trustee to prevent her daughter from spending money unlimitedly. We also reviewed her insurance needs and recommended that she speak with an insurance advisor to make sure she had enough coverage for her remaining real estate holdings.

  We set up regular ongoing progress review meetings with the client to ensure that the financial plan we co-created continues to be monitored. If there are any changes to the plan, we will adjust it as needed.

 
Contact us to learn more about what could be the best for managing your overall wealth, maximize your retirement income and tax mitigation strategies. We also can recommend your legacy plan.  By working together, we will determine how you want to be remembered by your loved ones with legacy preservation.