It’s time to enjoy (and be good stewards of) the fruits of your labor.
David & Karen, age 58, Raleigh, NC
David owns a consulting company, Umstead Business Services, with an annual revenue of $900,000.
Karen is a public school teacher.
David and Karen are steadfast savers and investors with an estimated net worth of $3.1M.
Both want to retire within the next five years – or when their first grandchild comes along, whichever happens first.
Challenge: An over-complicated portfolio and poor tax planning create unnecessary expenses and frustration.
David is very alert to tax issues as he approaches retirement – yet his advisor has not asked for a copy of his and Karen’s tax return. On two occasions, David & Karen paid taxes on capital gains they hadn’t anticipated.
Once a year, David and Karen meet with their advisor, who works for a large bank. Their joint account charges “wrap fees” on their $300,000 taxable portfolio – all David and Karen’s money that’s not tied up in the business, the house, the 401(k), and the 403(b). He reviews their account’s performance and reminds them he’ll be there to help when they sell the business and roll over David’s 401(k) and Karen’s 403(b) to a “couple of IRAs and maybe an annuity.”
According to quarterly statements David and Karen receive, their account is invested in a dizzying array of securities and bonds, an S&P 500 index fund, a small-cap growth fund, and something called a Biotechnology Vector ETF. The funds in the couple’s portfolio had high expenses and were selected based on their advisor’s research department.
Solution: The happiest successful investors get advice that is focused on their priorities.
Matt Miner could see that many of David and Karen’s biggest opportunities relate to optimizing their finances to minimize taxes now and in the future, especially as they plan for David’s exit from Umstead Business Services. Matt helped David determine if he was a good candidate for a Cash Balance Pension Plan, or for an addition of a profit-sharing feature for Umstead’s existing 401(k) plan, to lower current income and taxes now, and stash more cash for retirement.
Matt helped David and Karen reduce their investment costs and increase diversification and expected return by implementing a portfolio of low-cost, broadly-diversified mutual funds and ETFs.
Miner Wealth Management also connected David to experienced, trustworthy corporate lawyers and professionals who could help him with a business succession plan.
Results: Careful tax planning simplifies investments and maximizes wealth in retirement.
By following the advice of their Miner Wealth Management advisor, David and Karen:
Lowered their tax bill now, and in retirement.
Know exactly what taxes they will owe and when.
Have more stability in their retirement income.
Will be available to help their adult children and spend as much time with their (hoped for!) grandchildren as they want.
Have steps toward a smooth business succession, greatly reducing David’s current stress and eliminating his future stress entirely.
Contact us to schedule a free, 20-minute consultation, so you can learn how Miner Wealth Management can help you continue building wealth as you look toward retirement.
