About This Project

Joseph retired from his career as a corporate vice president after accumulating substantial assets, much of it in the form of stock in his former company. He and his wife want to maintain their current lifestyle and ensure that their assets will be sufficient for a long and active retirement. They also want to preserve a portion of their wealth for their children and grandchildren, and to support a variety of charitable causes.

 

And that’s where we came in: Legacy Trust recommends that Joseph diversify his investments to reduce the risk associated with having the majority of his assets in a single stock. Because he and his wife may need to generate income for 20 years or more, his asset allocation strategy includes a moderately aggressive portfolio with 35 percent in stocks, 25 percent in fixed income and 40 percent in alternative investments designed to deliver steady performance in all market conditions. Their retirement income plan is based on a minimum 5 percent investment return, which will comfortably support their lifestyle needs.

 

Joseph liquidates his company stock, which has appreciated significantly in value, over a period of 18 months. To help him avoid a large tax liability from the stock sale, Legacy Trust establishes a family foundation with an initial $1 million in assets. At the same time, Legacy Trust designs estate and philanthropic strategies for Joseph and his wife to transfer their wealth to their children tax efficiently and to support charitable causes from their investment income.

 

This profile is representative of Legacy Trust clients and the strategies that we design and implement for them. It does not describe an actual Legacy Trust client.

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Client Case Studies