What makes SeedSafe Financial any different?
We work with you as a financial coach and confidant, helping you grow your wealth for the long-term. Whether you are a tech professional or entrepreneur, we want to help you. Maybe you find yourself suddenly wealthy from your company stock, planning stock option purchases and sales around an IPO, wanting an act-two career change or determining what to do with your real estate empire – we are here for you.
She wanted an Act 2
Our client works in the bustle of a large tech hub city – surrounded by smart, wealthy, and hard working individuals. She worked for a start-up a few years ago when the stock skyrocketed from zero – making her a sudden millionaire. Her questions were:
- How do I use my stock gains wisely?
- Should I reduce my overall debt now?
- Can I relocate in a few years and change industries?
- When can I “retire” to a part-time work life?
We used a time sensitive plan to immediately pay off debts, emergency savings, and investments while minimizing taxes in the current year. Then, we decided on parameters for selling 80% of the remaining stock by looking at a floor, ceiling, and ratable selling strategy. The goal was to fund an Act 2 and retirement while making the most of gains and taxes.
But with great opportunity comes great responsibility, so we set in motion risk mitigation through estate planning, insurance, and developing tax memos to support her position.
They wanted long-term security
Our clients, a couple in a smaller tech hub, realized they made great salaries for the surrounding living standard. They owned a starter home and wanted to move up to a family-sized home. Their questions were:
- How can we save enough to retirement early?
- How do we secure against the future unpredictability of life?
- How do we get and keep the freedom and flexibility to enjoy life?
We worked together to create a budget that let them save half of what they made. They began investing and paying down the debts that would incur the biggest expense or hurdle to future career changes. We looked at whether they should keep their starter home as a real estate investment and determined the parameters for what family-sized home made most sense.
His company went public
On the founding team of his start up, this client worked for 7+ years to realize the day of the IPO. Now that he was there, he had four different mostly vested grants with different prices (due to series raises) and was told he’d receive RSUs after the IPO. He already had low expenses and a large cash pile of savings. He was getting married and thinking about his future family. His questions were:
- If I want to purchase a home in the next few years, how much should I be investing vs. keeping liquid/in cash?
- What strategy should we take with exercising and selling company stock?
- Where should we be redistributing our savings for long-term success?
We looked at tax-deferred strategies for maximizing his investments for the family and put the remaining cash into higher interest rate savings accounts. Then, we tackled the stock options. How much cash was he willing to outlay for the purchases? Then, we used this number to determine what kind of alternative minimum tax (AMT) hit he might take and the scenarios of where that would pay off or not. We determined the breakeven price and set a few scenarios for selling and buying stock options over a two year period to minimize taxes. We revisited these scenarios before IPO, during the 120 day black out period, at different stock prices, and as we saw what the market thought of the stock.
They saved and had real estate – was it enough?
This couple came to us in a wonderful position in their late 40s, they saved and invested in real estate but weren’t sure when enough was enough. They wanted to know:
- Can we afford to retire early?
- Will we be covered for medical expenses in retirement?
- What do we not know to do?
After conducting a retirement analysis, we realized they were funding their goals and more. Now it was finally time to reduce risk. We right-sized their portfolio allocation, reviewed tax savings, and conducted an insurance review. With so many real estate properties, it made sense to increase their umbrella insurance policy, write letters of intent to surviving family members, and think about putting each home in an LLC to limit personal liability.
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The above discussion is for informational purposes only. Recommendations are of a general nature, not based on knowledge of any individual’s specific needs or circumstances, and there is no intent to provide individual investment advisory, supervisory or management services.