Client: A professional couple with two young children sought advice in the aftermath of the 2008 banking crisis, shaken by the reversals suffered by many of their peers. Although their joint income was high, they were concerned about meeting both their medium and long-term goals, from college tuitions to financing a second home and, possibly, early retirements.
Solution: Evercore Wealth Management consulted with the couple regarding their concerns and aspirations in the context of their changing attitudes to risk. Their biggest concern was the couple's significant exposure to his company through compensation and equity awards.
With these objectives in mind, the Evercore Wealth Management advisors developed and implemented a systematic plan to diversify the husband's equity awards as they vested, funding two discrete portfolios.
The first portfolio represented a more defensive and liquid strategy designed to meet their projected capital requirements for college tuitions and a second home. In the second portfolio, Evercore Wealth Management was able to demonstrate that the couple's best chance of reaching their long-term aspirations regarding early retirement would be through a portfolio with a higher weighting to global growth assets, through both their personal and retirement plan accounts. The equity exposure in this portfolio was structured to be less correlated to his company stock.
Finally, Evercore Wealth Management worked with the couple's attorney to develop an estate and insurance plan that protected the family and minimized taxes, enabling the couple to substantially build on their successes to date, preserving what they had already achieved while also planning for their family's future.