Sharon and Peter’s prior advisor allowed a large amount of cash to build up earning next to nothing, their foundation isn’t functioning optimally, and charitable giving is at a standstill.

What We Learned

They have already retired to their dream home, secured sufficient income sources to cover all their retirement needs, and yet they feel their financial plan is missing a truly meaningful component. Sharon and Peter care deeply for their community and want to maximize their impact to the right organizations.

Our Solutions

Working together, we would suggest opting for a structured municipal bond strategy into their portfolio that enables their idle cash to earn higher interest that is free from taxation. This keeps more of their funds invested with a lower risk profile and higher ongoing cash flow than they previously experienced.

By incorporating unique asset categories, including income-producing private equity solutions and impact investments, the lack of portfolio diversification and their desire to make a societal impact can be equally addressed.

To support their charitable giving, it would be wise to close the administratively burdensome foundation and instead introduce a donor advised fund that could utilize company stock (with almost NO BASIS) for funding. Sharon and Peter would be able to receive a tax deduction for the full fair market value of the company stock and eliminate the potentially significant taxable gain on the sale of stock. With our due diligence on the charitable organizations they support, Sharon and Peter could make thoughtful grants from their donor advised fund over time to specific charitable initiatives and programs with the confidence that their contributions were being properly put to work.

Most importantly, Sharon and Peter could have the opportunity of becoming active changemakers in their community. Engaged in a philanthropic journey that inspires excitement and fulfillment, they could focus their efforts on the causes they care about most.

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