Corporate Executive Seeking Wealth Assessment & Retirement Planning

The Situation

Mr. Wilkerson, an executive with a large local corporation, is growing his net worth while being faced with a baffling range of compensation plans from his employer. In planning for his family’s long-term financial needs, he and his wife face many complex questions:

  • How much to save each year to educate their children?
  • How much to save each year for retirement?
  • How much to save each year in his company retirement plan?
  • Should he participate in the company stock purchase plan?
  • Should he exercise some or all of his stock options? If so, when?
  • How can he reduce his current tax liability?
  • Have he and his wife optimally structured their wills?
  • Do they have the right type of insurance coverages? Do they have enough insurance?
  • How can they minimize estate taxes?
  • Can they afford a second home?
  • What kind of retirement lifestyle will they lead?
  • How soon could he cut back his hours at work or even fully retire?
  • How should they invest to increase the likelihood of accomplishing the goals above?

At the same time, his wife would like a new, bigger house to meet their growing family and social needs. Mr. Wilkerson senses that he is at a tipping point in financial planning. He believes that if good decisions are made now, he will be able to set the course for a favorable financial outlook for the lifecycle of his family.

The Issues

  • Mr. Wilkerson has never comprehensively considered his financial situation, other than reviewing occasional broker statements.
  • His will is outdated.
  • He owns some insurance but isn’t confident his coverage is correct for his current life stage.
  • He and his wife have broker-established, personal investment accounts and IRAs that haven’t performed well and remain heavily concentrated in equities.
  • He cannot evaluate the wealth-building progress he’s making, if any, by reviewing monthly statements on each of his separate accounts.
  • He is grateful for the compensation plans of his company, but wonders what he might be missing.
  • He feels the need to have a coordinated portfolio strategy instead of the haphazard approach his broker has provided.

The Solution

  • ICMC works with Mr. Wilkerson to examine every element of his financial world and develop a financial strategy for his family.
  • Financial information on three levels (personal, retirement and corporate) are examined and organized.
  • A complete financial dossier is assembled, and an action list suited to Mr. Wilkerson’s temperament and desire for action is presented with a timeline.
  • Mr. Wilkerson is referred to professionals in the areas of tax, insurance, estate planning and real estate.
  • His ICMC-led team of experts gives Mr. Wilkerson an up-to-date financial plan that enables him to confidently make lifestyle and retirement decisions.