Executives in Transition

Set Up A Discovery MeetingWe understand how important it is to see the big picture. The financial planning aspect of what we do proves invaluable, providing access to a breadth of investment choices that help create a solid, long term plan. You can rely on Fairport Asset Management.

This specialized offering helps professionals, who may have accumulated money in retirement accounts or hold concentrated stock positions, manage their choices entering into or during retirement. Executives in Transition Download.

Transitions

Alternative investment and restricted stock considerations bring new responsibilities and questions. At Fairport, we are dedicated to guiding clients before, during and after these significant events. Fairport makes a difference for executives in transition.

Fairport understands the unique needs of executives and professionals who:

  • Have access to alternative investments, restricted stock and/or phantom shares and look to a wealth manager to help weigh their options;
  • Need ongoing, independent, objective advice and analysis;
  • Want to achieve their dynamic personal, family, economic and philanthropic goals.

Our professional advisors (which include CPAs, CFP® certificants and CFA charterholders) have experience working with high net worth executives at every stage of life to coordinate and implement a comprehensive financial plan that fits their distinct situation. Fairport has the capability to interface with other professionals on behalf of our clients to deliver an integrated, focused experience. 

Fairport’s expertise in working with executives stems from decades of experience and we know that listening and continually connecting with our executive clients throughout the relationship is paramount. Fairport’s professionals understand how challenging and complex these decisions can be and serve to protect the client’s wealth.

Fairport makes a difference by providing strategies that are specific to the issues faced by executives and professionals in transition. These strategies include examining tax implications of pension plans/options, generating forward-looking cash-flow models, and implementing investment strategies to help provide the client with peace of mind.

CASE STUDies

Retiring Forward Into A New Life

Steven started to realize how complicated his feelings about retirement were when he received notice from his employer, a large global oil company based in Texas, that it would be offering sizable early retirement packages to those in upper management who might want it. Financially, it would be a smart move for him, adding to an already impressive pension plan, a well-funded IRA and 25 years’ worth of vested company stock awards. But emotionally, thinking about life without work chilled him.

Steve and his wife Trish began asking around for a financial advisor who could help them through this major life transition. They were referred to James and his wealth management team, who had handled the affairs of several retired executives of Steve’s employer. Steve and Trish knew that they would need an experienced and adept advisor to guide them through the process they were about to begin and so they made an appointment. During their initial meetings, James and his team advised Steve and Trish to not only think about their expected spending requirements, but also to focus on what they wanted to do with life after work. Did Steve want to consult and keep his hand in the oil business or would he be happier devoting his time to family and pursuing new goals? Steve and Trish had always been adventurers at heart, mountaineering in Europe and the American West as often as their schedule had allowed. James urged Steve and Trish to envision their new life.

As Steve and Trish revealed their thoughts about their future, James worked on developing a plan that allowed them to fund it. They continued to meet and share concerns and ideas, forming a close relationship as they did so. Their discussions included the cost of medical benefits, long term care insurance, and a way to realize their goal to help pay for their grandchildren’s college educations. James showed them how gifting allowances for college savings accounts could be funded with substantial amounts right away.

James guided Steve and Trish through deep discussions about their life expectancy, spending needs, sensitivity to risk and the delicate balance that their personal investment plan would require between the three. Through this framing of the investment discussion, James illustrated how a plan to diversify Steve’s holdings of company stock to other types of assets would help reduce their risk. And importantly, James highlighted the need to update their estate plan for further protection of their assets.

As their relationship with James evolved, Steve and Trish realized they were getting invaluable long-term guidance to help them with complex decisions about their future. The peace of mind they received gave them the freedom to live their dreams of spending more time outdoors. They hoped to summit Mt. Rainier in time – maybe even taking their grandchildren with them! For James, there was real satisfaction in helping Steve and Trish develop their “life plan” and in knowing that he would be there for them along the way.

This is a fictional situation. Neither the investors nor the advisor are real. The description of independent registered investment advisors is for general information purposes only and does not necessarily reflect the services offered by any particular advisor. Advisors’ services, investment strategies and conditions for accepting accounts may vary.

Investing In Your Goals

Dave and Margo’s finances had become increasingly complex. Both in their late 40s, they had two young daughters to raise and educate as well as their own careers to consider. When a major life event, the death of Dave’s father, left them an inherited property, they realized they needed some sound advice. Dave, who had risen to Senior Vice President of Product Management for a Boston-based tech firm, was also aware that his options at the firm would vest in the coming year and that he had to make a decision whether to sell or to keep them. Dave and Margo needed advice from an expert who could help them make these new assets work in an overall financial life plan. And they wanted to clearly understand how they would pay for that advice and ongoing investment management.

Dave and Margo made an appointment with Peggy, a professional associated with a local registered investment advisory firm, with whom Margo served on a community arts council. At their first meeting, Peggy listened intently as they discussed their financial questions and concerns. How would the new property affect their tax strategy? Would the custodial accounts they’d opened in the children’s names be adequate to meet future college tuitions? What approach would make the most of Dave’s options over the long term? Peggy asked questions of her own, too, finding out that one of Margo’s goals was to leave her consulting job in a few years and become a teacher.

Dave and Margo felt they’d found in Peggy someone who could help them do more, who understood their complex questions and who would be available when they needed her. They were glad to hear her firm was registered with the SEC. She told them that their fee would be fully disclosed on statements, so they would always understand exactly what they were paying.

Over the following week, Peggy worked up a customized plan for the couple and gave them a copy. First, she advised Dave on how to handle the stock he would get from exercising his options. Since the family’s finances were heavily concentrated in the technology industry, Peggy reviewed their fund holdings and recommended a diversification plan. She also explained how their assets would be safeguarded at an institutional custodian, a company engaged by Peggy’s firm to custody stocks, mutual funds and other assets for their clients.

She outlined specifics for renting the inherited house, letting them know how tax laws could allow them to deduct a portion of the upkeep, depreciation and insurance costs. Dave was relieved to know that by holding on to the house, they didn’t have to worry about the huge tax implications of the cost basis between what his parents had paid to buy it and what it would fetch today. For the children’s college savings, Peggy suggested they immediately open college savings accounts for their daughters, pointing out the potential tax advantage these would give them.

As they worked together, Dave and Margo felt confident in Peggy’s ability to continue to guide them through future complex decisions and help them achieve their life goals.

This is a fictional situation. Neither the investors nor the advisor are real. The description of independent registered investment advisors is for general information purposes only and does not necessarily reflect the services offered by any particular advisor. Advisors’ services, investment strategies and conditions for accepting accounts may vary.