A Well-Defined Plan for a Comfortable Future
Dedicated financial partners
As a corporate executive, you face unique financial opportunities and challenges. At Aldrich Wealth, we take a holistic team-based approach that focuses on helping you navigate your multifaceted financial needs to help ensure that you make prudent decisions and achieve all of your financial goals. Your team of professionals will include wealth managers, financial planners, and tax professionals who will guide you with expert advice and integrated services to whatever degree of complexity your situation requires.
Client Success Story
Doug was at the top of his professional game. His leadership skills, experience, instincts and work ethic landed him on the executive team of a large company. His compensation structure included opportunities to acquire company stock through an employee stock purchase plan, participate in a 401(k) plan, receive stock option grants and participate in a deferred compensation plan. As he began to prepare for his retirement, Doug reached out to Aldrich Wealth to help him develop a plan for making tax-efficient use of resources while planning for his and his spouse’s financial future. He was also interested in mitigating the risk of the heavy concentration of company stock in their investment portfolio.
Aldrich Wealth evaluated all of the couple’s income streams and identified options for deferring income to periods in which the family’s tax bracket would likely be lower. The team determined the minimum taxable compensation that Doug needed to take from the company’s employee stock purchase plan and matching contributions to a 401(k) plan.
Doug needed a strategy to exercise stock options as tax efficiently as possible. In years when he decided to exercise options, the team encouraged Doug to utilize the proceeds to fund household expenses while taking full advantage of opportunities to defer a large portion of his salary and bonuses. State tax credits were also evaluated as a strategy to increase the couple’s deductions and reduce their tax liability.
Given their portfolio’s concentration in company stock and Doug’s pending retirement, the couple wanted to invest their outside holdings in assets that would safeguard the value of the principal. Aldrich Wealth pursued an investment strategy that would allow them to achieve their goals in a tax-efficient manner.
Doug considered the prospect of relocating to a different state during the remaining years of his employment. Aldrich Wealth assessed the tax implications of the move and provided tax projections under these scenarios. Once the couple made the decision to change their primary residence, Aldrich Wealth provided assistance with the requisite tax filings.
A cornerstone of the working relationship was a financial plan that accounted for the couple’s current and future needs. This plan was the basis on which they made major decisions – including the timing of Doug’s retirement, the construction of a new home and provisions for charitable giving. Periodic updates reflected changes in their assumptions, life circumstances and market conditions. Since Doug’s retirement, he and his wife meet with the Aldrich Wealth team quarterly to review their financial plan, investments and tax strategies. Doug has the peace of mind in knowing that the team will listen attentively and compassionately to their concerns, offer expert advice and take actions that serve their best interests.
Your financial plan will address several specific areas of concern for many corporate executives.
We will gain a deep understanding of your unique financial picture and create a comprehensive financial plan that will form the foundation for all future decisions. As part of this process, we will take into consideration your various forms of compensation and address specific areas of concern, allowing you to focus on what matters most. Your investment allocation and long-term tax strategy will be closely integrated with your overall financial plan.
As a high-level employee, you may be compensated in part with equity awards. There are many different forms each with its own set of rewards, risks, and tax consequences to consider. Your team will be well versed in equity compensation and will provide you with a customized solution to manage your equity awards while taking into consideration liquidity needs, tax consequences, and trading restrictions. We regularly advise executives on:
- Stock Options (Nonqualified and Incentive Stock Options)
- Restricted Stock and Section 83(b) elections
- Employee Stock Purchase Plans
Sound investment management is critical to achieving your financial goals. At the center of our investment management process is our investment committee which will design, implement and manage your portfolio. This structure allows for thoughtful execution of our investment principles and policies.
If you are compensated with equity awards, you may also find that a significant portion of your net worth is tied to your company stock which can pose a substantial risk and present the need to diversify. We can create a customized diversification strategy to address the risk of the concentration in your investment portfolio. Any reduction in company stock would then be done tax efficiently over time while also ensuring that you satisfy any trading restrictions.
Effective tax planning allows you to keep more of what you have earned. We are uniquely positioned with tax professionals who can assess your overall tax situation and give you advice on when you should exercise your stock options, how stock awards will impact your tax liability, and whether you should hold or sell your company stock. We can also evaluate your income streams and help you determine the optimal amount of income you need to defer each year to mitigate your tax liability and maximize your after-tax returns.
Insights for Aldrich Executives
Meet Our Professionals
Abbey Rollins, CFP®
Abbey joined Aldrich Wealth in 2007, after spending five years at a traditional brokerage firm. Abbey’s goal was to focus on personal financial planning, which was not a service valued in the brokerage industry. Shortly after joining the firm, Abbey obtained her CERTIFIED FINANCIAL PLANNER™ practitioner designation (CFP®) and greatly expanded the financial planning services…
- High net worth families, business owners and medical practitioners
- Series 66 security exam
- Certified Financial Planner™