Managing Investments Case Study
David, age 59 | Primary goal: reorganize his investments to suit his financial goals.
David has built a successful HVAC company that generates around $4 million a year in revenue, and has a team of 5 technicians. David's wife, Lori, works as the office manager and helps with customer service. As he gets older, David has been seriously considering the idea of selling his business so he can spend more time with his wife in their favorite place – Palm Springs!
The Challenge
David is an expert when it comes to running his business. However, he is not the best investor. He feels overwhelmed, and lacks the time to deal with his investments. Additionally, he knows the sale of his business will provide him with a large sum of cash and wouldn’t feel confident moving money around without a professional opinion.
The Approach
After a few weeks of online research and attempting to do everything himself, David knew that he needed help. He remembered a few years back his contractor sold his business, and decided to give him a call. Turns out, his contractor hired a local financial advisor to create an actionable plan to maximize the value of his business.
David did the same, and found an Elite Financial Network advisor through a Google search. He was extremely impressed, and decided to schedule a meeting.
A Personalized Plan
From the initial conversation with the Elite Financial Network team, David knew he made the right decision in seeking a financial advisor. In collaboration with David’s tax and legal experts, the Elite Financial Network:
- Reorganized David’s investments to better match his stage of life and financial goals.
- Set up a business retirement plan for David’s employees, seeking to increase the value of his business for when he does sell.
- Created a tax management plan, in addition to helping David prepare for retirement.
- Built out an "employee communication plan" that helped David manage expectations for his technicians.
- Reviewed David’s insurance policies and helped optimize his estate plan from a financial perspective.
David and Lori are now at ease knowing that they are taking the right steps to preserve what they’ve built. They are also looking forward to exit day, so they can enjoy the retirement they've dreamed of!
Note: This is a hypothetical situation based on real-life examples. Names and circumstances have been changed. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or strategies may be appropriate for you, consult your advisor prior to investing.