Asset Protection, Multiple Needs and Strategies

The client had unprotected assets plus a high-income stream with a deferred compensation plan and a pension plan.

As our client geared up for retirement, protecting his significant assets was important to ensure that his wife and children were financially secure should he predecease. 

When we first met with the client, we determined that well over $800k of long-term incentives from his company were in his name individually and were appreciating. We recommended that he immediately put the long-term incentive (LTI) and all bank and brokerage accounts in “tenancy by the entirety” titling to protect them from litigation.

Additionally, we recommended an umbrella policy that could cover the value of the long-term incentives and an increase in the liability limits on his auto insurance. We also recommended that the client include his Texas real estate and Idaho rental home as additional insured properties under his umbrella policy. 

As the client nears retirement, we are working with him on a pension maximization strategy. This strategy involves reviewing pension payout options and determining whether it makes sense for him to claim a single payout with a term life insurance policy or a joint and survivor payout. 

We are designing a cash flow plan for his $1.4M deferred compensation, with lump sum payouts and distributions over 11 years. We are also working on structuring an income plan to allow him to retire before full retirement age and have his deferred compensation fully paid out before his Social Security and Required Minimum Distributions begin. 

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