Case Studies
The following case studies are similar to creative strategies we’ve implemented for our clients.
Growing Pains
Primary Goal: Business Growth
At 49 years old, Joanne started an apparel company, and, within three years, they saw sales increase to more than $10 million annually. Despite the successful sales numbers, she was having trouble with employee management and taxes. After a business strategy meeting, she understood the importance of outsourcing human resources (HR). The company engaged an HR company to evaluate policies and establish both a compensation, benefit plan and creation of an employee handbook. During the meeting, it was also revealed that taxes were a major issue for Joanne. It was suggested that she work with a third-party administrator to illustrate a defined benefit (DB) plan and profit-sharing plan for the company.
Leaving a Legacy
Primary Goal: Business Retirement Transition
After James and Agnes sold a business they owned for 30 years, they started considering what to do with the money they made from their business sale. Both having children from previous marriages, they were concerned about their legacy and how to leave equal amounts to each child. With the assistance of an estate attorney, an estate plan was developed to leave a legacy for their children and set up a charitable remainder trust where they could leave money to their charity of choice and receive tax-favorable income in retirement. The couple were also concerned about long term care and how to cover the cost. We suggested a life insurance policy with a long term care rider to address these concerns.
An Unexpected Loss
Primary Goal: Business Succession
Integrating Personal & Business Strategies
Hector and Kathleen were married for over 35 years when, unfortunately, Kathleen passed away at the age of 54 after a battle with cancer. They owned two florist shops in Atlanta. Hector was not sure if he wanted to continue the business because it would be difficult to handle the operations load on his own. They have two adult children, Margaret and Alec. Alec was a construction worker and Margaret had just received her MBA. Originally, Margaret wanted a big corporate job but decided, after her mother passed, that she would like to take over the family business. After participating in a legacy planning workshop, a strategy was developed so that a portion of the business profit go into a Living Trust to be split by both children upon Hector’s passing. A buy-sell strategy was also created for Hector and one of the store’s long-time employees, who hopes to buy the business in 10 years.
Riders are additional guarantee options that are available to an annuity or life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees, charges and restrictions, and the policy holder should review their contract carefully before purchasing. Guarantees are based on the claims paying ability of the issuing insurance company.
The case studies presented are provided for illustrative purposes only. Past performance is no guarantee of future results. The information has been obtained from sources we believe to be reliable, but we cannot guarantee its accuracy or completeness. These strategies do not guarantee a profit or protect against loss and may not be suitable for all investors. Each person's specific situation, goals, and results, may differ. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
Steward Partners, its affiliates, and Steward Partners Wealth Managers do not provide tax or legal advice. You should consult with your tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters.
Steward Partners Investment Solutions, LLC offers insurance products in conjunction with its licensed insurance agency affiliates.