Max is a real estate investor. He knows his profession is risky for his financial life and he desired the guidance of a financial professional due to the unpredictable and unconventional nature of his business. The problem is, many financial advisors he’s worked with have tried to get him to invest his money in something other than real estate instead of finding solutions that align with his method of building wealth.
When he sought us out, he realized that we were here to help him where he was at; to provide planning services and coaching customized to his life and profession. After getting a clear picture of Max’s situation, we discovered some challenges to work through. With net worth tied up in illiquid real estate and a lot of cash on hand for future investments, traditional financial planning strategies weren’t ideal for Max. He also didn’t have the benefits of an employer-sponsored retirement plan, company disability insurance, or regular, predictable W-2 income.
Despite what others may have told him, his financial life didn’t have to suffer just because real estate makes up a substantial part of his net worth and everyday life. In fact, we see it as an advantage, as the tax code has various benefits built-in for real estate and many of our clients have taken full advantage of them.
For Max, we helped him evaluate the big picture of his wealth and created a plan that would help him achieve his long-term goals without altering the way he got to where he is today. We spent time discussing the following questions in-depth:
- What is my risk level? Are my investment strategies in line with this number?
- How can I align my property investments in the most tax advantageous way?
- How will my upcoming investment decisions impact my tax burden?
- I’ve been told I need to diversify my savings. Is this the best strategy for me?
- What should I be looking for in an investment property?
- How do I make sure my real estate investments are set up to provide for my future?
- Which retirement plan is best for me and how and when should I fund it?
- Do I need an asset protection strategy? How much liability insurance do I need?
- I have a will. Is that enough when it comes to estate planning?
Based on his answers, we created a strategic plan to get Max where he wanted without sacrificing the cash and liquidity he needed to continue building wealth in his preferred way.
