Building a Financial Foundation that Keeps My Family Secure, No Matter What Life Brings
A successful entrepreneur, known for his strategic acumen and innovative ventures, found himself facing new complexities as his wealth grew. With investments spanning multiple sectors and a net worth of over $30 million, he realized that managing risk required more than intuition—it demanded a proactive, tailored approach to safeguard both his current lifestyle and his long-term legacy.
In our first meeting, he asked the essential question:
Can I protect my wealth from unforeseen risks while still expanding my business interests and providing for my family?
- client, addicus risk management
Understanding the Unique Challenges
The Addicus difference began with listening closely to the client's needs and understanding his intricate financial landscape. He wanted to pursue new business opportunities and enjoy his success while ensuring his wealth remained secure for future generations. His primary concerns included potential market volatility, exposure in his diversified investment portfolio, and the need to protect assets for heirs.
Developing a Customized Strategy
After a detailed assessment of the client’s investment risks, estate planning structure, and insurance needs, we crafted a strategy that balanced wealth protection with flexibility for future growth:
- Asset Protection: We recommended implementing trust structures to safeguard key assets from potential lawsuits or creditor claims, ensuring that his $24 million in real estate and business interests remained protected.
- Insurance Optimization: To provide additional security, we reviewed and optimized his life insurance, repositioning $1 million into a Premium Deposit Fund (PDF) within an Irrevocable Life Insurance Trust (ILIT). This allowed his family to access liquidity for estate taxes without needing to sell valuable assets.
- Long-Term Care Solutions: Recognizing his desire for financial stability in retirement, we helped him acquire a OneAmerica Joint Asset-Based Long-Term Care (LTC) policy with a single premium of $250,000. This policy provided a lifetime monthly LTC benefit of $6,000 per person and a death benefit of $300,000, ensuring both care and financial legacy.
Results That Made a Difference
With the new plan in place, the client gained peace of mind, knowing that his risks were effectively managed. The combination of trust structures and optimized insurance allowed him to maintain his lifestyle and philanthropy, while also ensuring his wealth would remain intact for future generations. Additionally, by restructuring his assets and insurance, he unlocked a total estate liquidity benefit exceeding $9 million—enough to cover estate taxes without the need to liquidate high-value investments.
Here’s how we did it:
The strategy empowered the client to continue pursuing his passions—investing in new ventures and supporting the causes he cared about—while reducing his exposure to market fluctuations and potential liabilities. By transferring $1 million into a PDF and securing an LTC policy, we significantly lowered his annual income tax and improved his financial resilience, allowing him to spend on family and charitable gifts without compromising his long-term legacy.
The Addicus Approach: Proactive, Personalized, Proven
Our work with this client reinforced the importance of understanding each individual’s unique financial journey. We don't just create solutions—we tailor them to the specific needs and goals of every client. By taking the time to truly understand their challenges, we empower wealth creators to protect their hard-earned success and navigate risks with confidence.
Allow us to introduce ourselves
Contact us today and we will be happy to provide more information about Addicus and schedule an introductory meeting.