The Business Owner
iThrive Life Planning Process™
Vision: Sell the business in 10 years and retire; finish
paying for childrens’ education; have enough money to
live a comfortable lifestyle but also have enough to care
for their special needs son (their greatest concern).
Awareness: We collected all of Paul & Mary’s data and
found they were above the confidence zone with a 95%
probability of achieving their Vision if they continue their
Plan: In a live planning session we made adjustments to
optimize their confidence score to 86%. In doing so they
were able to reduce investment risk and spend more
money each year.
Implement: Thrive Implemented their plan every step
of the way.
Monitor: Thrive continues to annually confirm their
Vision, test their plan, and hold them accountable so
they stay on path.
Business: Selling a business is a very difficult thing to do.
Rarely do we see a business sold on the owners terms or
for the right price. It’s very important to plan years in advance.
Thrive worked with Paul & Mary to create a team
of advisors (accountant, lawyer, and business growth coach)
to properly plan for the future sale of their business. This
process created efficiencies that increased annual revenue
by 40%, rejuvenated their drive for the business, and their
personal income jumped over $1M/year.
Investments: Paul had a difficult time resisting the
urge to continue pumping money into the business. Mary
on the other hand was uncomfortable with the risk and
welcomed the idea of diversification. Paul and Mary now
have a Joint Account worth $2.7 M (both from focusing
on building up their investment account and creating a diversified
growth oriented investment portfolio). Thrive
also took over management of Paul’s company 401(k)
plan and increased his contributions to $95k/year by
adding a profit sharing feature and including Mary as an
employee for the clerical work she performs.
Insurance: Modified their entire portfolio to properly
fund a succession plan and care for their special needs
child (which involved establishing a realistic price for their
desired standard of care).
Estate Planning: Introduced an attorney that specializes
in estate planning for families with special needs children.
Created an Irrevocable Trust to care for Paul and
Mary’s special needs child. Paul and Mary had a taxable
estate. We valued their company and shifted non-voting
stock to a trust for the benefit of Mary and their children.
In doing so they no longer have a federal estate tax issue.
An ideal succession plan for the business was also implemented.
Taxes: Saved $1.5M in potential estate taxes and
$67k/year in income taxes by increasing their 401(k) contributions
and actively managing taxes in their investment
The above is a hypothetical case study and not based on actual individual client results.