A Story of Life
Imagine being widowed unexpectedly at age 62 and travelling the world as a tribute to your spouse and all the life you lived together. After 35 years together, our client lost her husband in 2006 and wanted to live “their” life. She came to us through a professional partner introduction asked us to create a plan for this experience while staying within her means and maintaining her $3MM Net Worth
A substantial concentrated net worth and little income was the starting point for our relationship. Our client had over 80% of her liquid net worth in one stock, a house with a $179,000 mortgage and her annual income of approximately $80,000
Using our experience in planning for the unexpected, TCWM created a multi step plan to meet her needs and desires and also prepare for protecting her legacy to pass to her children and grandchildren. Our plan and her implementation included:
• A multi period sale of the concentrated stock position using options to reduce the potential downside risk of the global financial crisis in 2008 while minimizing the tax liability
• Working with her CPA we eliminated the house mortgage and the $24,000 in annual payments thus increasing her disposable income
• Increased her annual income by 65% to $132,000 giving her the additional cash flow for travelling and purchasing a condo in Dallas while maintaining her primary residence in Central Texas.
• In tandem, we worked with her CPA and Estate Attorney to implement appropriate legal and tax strategies to enhance her future family legacy
Selling the majority of the family stock position was emotional for our client. TCWM provided the ongoing support and guidance to allow her to make the change. With her new income and desire she has embarked on month long trips to Mexico, Vietnam, Thailand and Egypt as well as numerous week long trips in the USA.