Meet John and Sue Morton*

Our clients, John and Sue Morton were self-employed business owners when we first started working with them.  Together, this married couple founded a successful furniture business and came to us when they were looking to sell.

Their business was their largest asset, so they wanted to make sure that they received the best price possible and also wanted to make sure that they structured the sale that was the most favorable for them from a tax perspective.  While they had investments and retirement accounts, they were not sure that these accounts alone would be enough to support their retirement. They also had two children fresh out of college who needed their financial assistance frequently, which caused them extra concern.  They were hoping to achieve some feeling of financial security.

They were referred to us by their accountant and liked the fact that our firm was fee-only and agreed to act as their legal fiduciary.

How We Helped

Our first step was a discovery process where we learned everything about their current financial situation.  We learned about their business, their current investments, their long-term retirement goals, past experiences, and also all other important information that was needed to start working on a detailed plan.

While we were going through the discovery process with The Morton’s we learned that they were actively negotiating with the party that eventually purchased their business.  Our team, which always includes tax professionals and an attorney, worked closely with them to examine the offer and propose a structure that would allow them to achieve the best after-tax results.  With our assistance, they negotiated a sales agreement that minimized the taxes they owned on the sale and also maximized the price they received.

John and Sue had experienced outsized losses in the dot.com and 2008 financial crisis, so they were very concerned about protecting themselves from future volatility after selling their business.  The wanted to make sure that they could continue living their same lifestyle after they stop receiving their regular paychecks.

It was very important that we fully understood The Morton’s concerns and that we designed a portfolio that would allow them to accomplish their long-term financial goals and also match their risk tolerance.  We wanted The Morton’s to feel secure that their financial plan would be able to weather any economic environment while also allowing them to participate in some growth and still leave a nice inheritance for their children and grandchildren.

Estate planning was also a big concern.  They wanted the wealth they built to stay around but didn’t know how to protect their kids and future grandchildren’s inheritances from creditors, divorce, lawsuits, etc.  The Paradigm team helped them clarify these goals and examine options to achieve them.  Once a strategy was created, our team helped them implement a trust and asset protection strategy that would help ensure their legacy lasted.  The Paradigm attorney on the team handled the implementation, saving them significant attorney fees, as well.

Over time, we addressed all these other areas of their financial life:

• We helped them convert a regular IRA to a Roth IRA to help reduce future taxes.
• We helped them develop a charitable giving plan to support their favorite causes while maximizing tax benefits.
• We helped them analyze the need for long term care insurance.
• We started doing annual tax planning sessions to look for ways to reduce their tax bills.
• We started holding annual family meetings to assist their adult children on the road to financial independence.

Today, we continue to meet with John and Sue each quarter to continue addressing their financial needs.  We continue to provide them with full-service financial help which recently included helping them with a refinance and helping their son set up a Roth IRA.

*This material is hypothetical in nature and not intended for use as investment advice.  It does not guarantee the attainment of your retirement goals.  Individual results may vary.  There is no assurance that any investment strategy will be successful.  Investing involves risk and investors may incur a profit or a loss.  Asset Allocation and diversification do not ensure a profit or protect against a loss.  Past performance is not indicative of future results.