Success Stories

A story of transition.

Our client is a corporate executive who has built a sizeable asset but didn’t have a comprehensive plan to capitalize and protect this sizeable asset as he contemplates retirement.

THE CLIENT

  • Oil and gas professional in his 50s working at a large publicly traded energy company and has been in the oil and gas industry for the past 30+ years. Married with grown kids and young grandchildren.
  • Has $4 million in assets spread across his 401(k) plan, employer stock, and pension plan. He holds a large percentage of his wealth in his employer stock, which has taken losses recently with the industry downturn and depressed stock price. He was hurt pretty badly in the 2008-2009 market downturn so he is being cautious and holding a lot of cash in his portfolio which is earning a very low amount of interest.
  • Would like to have the option to retire so he can start a consulting company to achieve flexibility in his schedule, work only on projects he enjoys, and spend more time with his family especially his young grandchildren.

THE CHALLENGE

ALLEVIATE THE CLIENT’S CONCERNS AND DEVELOP a comprehensive transition plan to move him towards retirement from his company. He would like to have a plan that allows him to not worry about his income needs, and would like to achieve some diversification in his investment plan. He also needs advice on his pension plan as he needs to make the decision on whether he takes the lump sum benefit or annuity option. Lastly, he needs a long-term tax plan, including guidance on Social Security decisions in the future.

ACTIONS

Castleview’s CORPORATE EXECUTIVE SERVICES TEAM developed a comprehensive strategy to transition the uncapped wealth in his employer stock to a well-diversified portfolio to meet a variety of long-term needs. Actions taken:

  • Designed a strategic plan to manage his concentrated stock position, maximize gains and minimize risk and short-term tax consequences
  • Implemented a diversified portfolio based on retirement goals and current needs
  • Implemented a lifestyle budget that manages cash flow
  • Created a 10-year tax projection and a plan to minimize taxes and maximize after-tax income from investments to meet his future income needs
  • Provided analysis of his pension plan options and helped him assess which option to select, taking his Social Security options and tax planning into consideration
  • With the client’s involvement, helped him carefully select the other professionals to be a part of the wealth management team, including a CPA and attorney.
  • Introduced and helped construct a charitable and wealth transfer strategy to fulfill philanthropic desires and leave a legacy for the family

SUMMARY

WITH A LONG-TERM PLAN IN PLACE that meets his goals, the client felt comfortable and ready to retire from his company to concentrate on other business ventures and pursue a more family-oriented lifestyle. Additionally, he was able to minimize his risk and tax consequences while maximizing his gains through the strategies recommended by Castleview. Today, his portfolio is more diversified and he has a comprehensive wealth plan to make this transition. The client now has a comprehensive quarterly review meeting schedule in place, a relationship one should expect from their wealth management team.