Mr. S recently sold his business for stock in a public company. His stock is worth $100 million. He intends to look for other business and investment opportunities. He is married, with one child in college and another in grade school.
While Mr. S is financial savvy, he does not wish to manage his now-complex financial affairs, preferring to spend more time with his family and enjoy his wealth. His financial goals include diversifying his concentrated portfolio, growing his wealth in a conservative manner, and generating enough income to cover his expenses. He would like to minimize his income and estate taxes. He would prefer to continue using his company lawyer for personal matters.
The Tolleson Wealth Management plan for diversifying Mr. S's portfolio includes tax-deferred and outright-sale strategies. We develop an investment plan that accounts for his risk tolerance, growth objectives, and income needs. To implement the plan, Tolleson Wealth Management recommends money managers, hedge funds, and private equity investments.
As part of the strategy, Mr. S contributes a portion of his company stock to a charitable remainder trust he creates to benefit his alma mater. Tolleson Wealth Management manages the process, researching investment opportunities, negotiating fees, and establishing brokerage and custodial services. Tolleson Wealth Management recommends that Mr. S form a family limited partnership as a mechanism to gift assets to his children and provide an added layer of asset protection. To protect his family, Mr. S purchases umbrella liability and kidnap/ransom insurance policies. Tolleson Wealth Management recommends the insurance broker who issues the policies and works with Mr. S's attorney to execute the agreements.
To help Mr. S minimize his income and estate taxes, Tolleson Wealth Management designs and implements tax strategies that will significantly save in taxes each year, while maximizing the benefits of his expenses. We provide Mr. S with consolidated quarterly reports that reflect this net worth, his cash flow, and the performance of his assets.
In the short term, Mr. S is interested in buying a yacht and is also considering acquiring a controlling interest in a growth-stage technology company. Tolleson Wealth Management will assist in both of these purchases. As our relationship with Mr. S continues, Tolleson Wealth Management will be able to assist him with any financial matters that arise.