Our Case Study Successes
These hypothetical case studies showcase how we help tech executives and professionals navigate financial challenges, grow their wealth, and align their finances with their values.
Executive Case Study
Hypothetical Case Clients: Brad & Katie
Age: 47 & 45
Occupations:
Software Engineering Manager
Fitness Instructor and PTO Treasurer
Financial Life Challenges:
- Paying too much tax
- Understanding and navigating equity compensation decisions (RSUs and ISOs)
- Protecting our family and wealth due to an unforeseen event
- Increased financial complexity, large bills, and a lifestyle to fund
Primary Goals:
- Be proactive on tax planning to reduce taxes
- Manage concentration risk, invest wisely, and save for the future
- Get a handle on cash flow and create a giving strategy
- Get financially organized and make sure the family is secure
The Situation:
Brad has worked in technology for nearly 25 years. He has worked for several tech companies over his career. Brad is earning $600K+ annually, receives substantial RSU and ISO awards, and is maxing out his 401(k) and HSA. Yet he knows there are more strategies to take advantage of to reduce their taxes and increase their wealth. Brad has climbed the corporate ranks and now realizes that he must be more thoughtful about the substantial risk from having big exposure to his company stock.
Katie loves being a Fitness Instructor at the local athletic center. She is also the PTO Treasurer, which takes up significant time. Now that the kids are approaching high school ages, Katie often wonders about starting her own business on the side.
Brad and Katie lead very busy home and work lives, with two boys (ages 14 & 12). They could do some of the financial planning and investing on their own, but their finances have become more complicated, and the equity compensation decisions have big tax implications. They also lack the desire and time to manage their own financial affairs. Instead, they would rather hire a financial planner and focus their time on watching the boys’ football and basketball games, continue finding great restaurants, and keep planning big vacation trips. Afterall, it will not be long until Brad and Katie will be empty nesters.
The Approach:
Before putting the financial architecture in place, we invest time together to gain clarity on where you are and where you are heading. We start with your life. What is most important to you? What are your values, possibilities, and dreams? We will discuss your current financial life satisfaction and determine any gaps. In addition, what transitions (financial, work, and life) are upcoming that need proactive planning?
Once we know where you are heading, the next stage is to review and understand your finances. We will analyze your equity compensation, tax, risk, and investment situation. It is also important to get financially organized and prepared to make sure your family is taken care of.
After the financial plan is created and agreed upon, we will create an appropriate investment strategy to match your plan. Going forward we will monitor and review your ongoing progress versus the plan and make adjustments when needed.
The Results:
Brad and Katie understood the importance of financial planning and investing, and they were eager to delegate these services. After meeting several times with Stu, they collaborated to develop a customized financial plan. They received exactly what they were looking for:
- Created a proactive tax strategy to implement a Roth conversion and a mega backdoor Roth IRA and put in place a purposeful giving strategy that reduces their taxes.
- Conducted an equity compensation and tax analysis and put in place decision criteria for the structured selling of RSUs and exercising ISOs to reduce concentration risk.
- Developed a plan to get cash flow under control and fund their life priorities, especially the family trips!
- Updated the estate plan that Brad and Katie first established 15 years ago. Their financial documents are organized and secured, and their assets are protected should an unforeseen event take place.
Brad and Katie were grateful that their financial plan was developed and implemented, because it gave them more time to focus on what matters most in their lives! They also know that real financial planning is an ongoing process, not just a one-time event. They are excited to see how life unfolds!
Hypothetical case studies are fictional in nature and do not represent the experiences of actual clients. All investing involves risk, including the potential loss of principal. There is no guarantee that any investment plan or strategy will be successful.
You’re smart, capable, and you’ve worked hard to build your business/career and a good financial life. Yet, you find yourself wondering “What’s it all for anyway?”
You also have important questions and now it’s getting more complicated.
No need to do this alone. Let’s work together to achieve your financial goals with a values-aligned approach!
Entrepreneur Case Study
Hypothetical Case Clients: Dave & Amy
Age: 43 & 41
Occupations:
Product Manager - Director
Website Developer
Financial Life Challenges:
- Paying a lot of taxes
- Wealth tied to a tech startup through ISOs
- Competing demands for their money and time
- Avoiding a big mistake due to lack of organization, being underinsured, and no estate plan
Primary Goals:
- Reduce taxes and increase cash flow
- Desire to invest wisely and save for the future
- Get financially organized and make sure the family is secure
- Setting up college savings accounts
The Situation:
Dave has been working at a tech startup company in Austin, TX, for the last 5 years. Dave works incredibly long hours and does not have much time to focus on the family financial affairs. The tech sector has experienced rapid growth, and a lot of their future potential wealth is now tied up in the startup through ISOs. In addition, the housing market has been hot the last few years. As a result, their income and net worth have increased substantially. Now Dave and Amy find themselves in the highest tax bracket and in need of better tax planning strategies to reduce their tax burden, especially the Alternative Minimum Tax (AMT). And they need a strategy to diversify their wealth, because startup success and an IPO are not a sure thing.
Amy is also in the tech sector, working in web development. While Amy has worked at the same company for 15 years and has a stable income, it is important for her to make sure they are financially organized and have an estate plan set up just in case something happens.
Dave and Amy have a boy and a girl (ages 8 & 6). They notice the rising cost of education and want to establish some college savings. Since they have been blessed with great financial resources, Dave and Amy want to get serious about investing outside of their tech holdings. In addition, their faith in God is a family priority, so they desire to create a purposeful giving strategy.
The Approach:
Before putting the financial architecture in place, we invest time together to gain clarity on where you are and where you are heading. We start with your life. What is most important to you? What are your values, possibilities, and dreams? We will discuss your current financial life satisfaction and determine any gaps. In addition, what transitions (financial, work, and life) are upcoming that need proactive planning?
Once we know where you are heading, the next stage is to review and understand your finances. We will analyze your equity compensation, tax, risk, and investment situation. It is also important to get financially organized and prepared to make sure your family is taken care of.
After the financial plan is created and agreed upon, we will create an appropriate investment strategy to match your plan. Going forward we will monitor and review your ongoing progress versus the plan and adjust when needed.
The Results
Dave and Amy committed the time to working with Stu at TwoTen Planning to put in place a solid financial life plan that sets them up for success - now and in the future. Their plan included:
- Working closely with Stu and a CPA to figure out strategies to reduce future taxes and increase cash flow, including contributing to a Roth 401(k) and creating a quarterly strategy to address the ISOs.
- They formalized a family donor advised fund, which allows for appreciated stock donations, and it increases their itemized deductions.
- Getting financially organized, adequately insuring Dave and Amy, and working with an estate attorney to develop an estate plan. This put Dave and Amy at ease, knowing the family would be ok even if an unforeseen event happened.
- Setting up 529 Plans for the kids. Now the grandparents can contribute often!
Dave and Amy are feeling more confident and optimistic about their future than ever before!
Hypothetical case studies are fictional in nature and do not represent the experiences of actual clients. All investing involves risk, including the potential loss of principal. There is no guarantee that any investment plan or strategy will be successful.
You’re smart, capable, and you’ve worked hard to build your business/career and a good financial life. Yet, you find yourself wondering “What’s it all for anyway?”
You also have important questions and now it’s getting more complicated.
No need to do this alone. Let’s work together to achieve your financial goals with a values-aligned approach!
“Commit to the Lord whatever you do, and he will establish your plans.”
