Entrepeneurs and Concentrated Wealth continued
The proceeds from the gradual sale of the concentrated stock were primarily invested in domestic and foreign equities and alternative assets, such as REITs, commodities and absolute return funds. A small portion of the portfolio was also invested in bonds to provide some stability and income. Efforts were made throughout the process to minimize adverse tax consequences resulting from selling low-cost basis stock. The outcome was a better diversified portfolio with significantly less risk. Their wealth manager also referred Robert and Joan to an estates and trusts attorney who created the vehicles necessary to allow Robert and Joan to provide for their children and other family members, as well as their philanthropic desires.
Robert and Joan’s wealth manager continues to spend a great deal of time in face-to-face meetings with them in order to address their changing and ongoing needs. She also invites them to education and information workshops facilitated by Sand Hill Advisors where they meet others in similar situations. Lastly, Robert and his wife’s wealth manager acts as a buffer for them from people who want them to fund their next movie, their latest venture or their new car. Now all requests for money follow the same processing steps in order to insure the couple’s desire to manage and protect their family’s wealth, as well as provide for others where prudently possible.
The Expertise of the Investment Management Group and Support From the Client Services Team round out the services Robert and his wife receive from Sand Hill Advisors.
* The story presented represents a hypothetical case based on a composition of multiple client experiences and issues. This case is presented to illustrate the services and approach of Sand Hill Advisors and is not meant to guarantee that a particular client’s needs or objectives will be met. All names and identifying details have been altered to protect the privacy of clients.