” Michael & Sarah: Maintaining Control

What are your biggest financial challenges today?

Creative Planning Strategies

2020-11-19T17:33:04-05:00

What are your biggest financial challenges today?

https://cpsnyc.com/testimonials/thought-4-biggest-financial-challenges/

Creative Planning Strategies

Michael & Sarah: Maintaining Control

Michael and Sarah were successful real estate investors who followed a consistent program of annual reinvestment. They had a combined net worth of $80M, supported by an annual gross income of $4M. They were concerned about protecting their legacy to their children and about estate taxes, but believed that their only estate planning options would come at a tremendous lost opportunity cost to their investment strategy. While they wanted to provide a solid foundation for their three children, they didn’t want it to diminish their real estate investment activity. As a longstanding CPS client, Michael knew that 3D Wealth™ Strategies might provide an answer.

Financial Overview

Michael and Sarah’s assets were allocated between investment real estate ($35M), equities ($35M) and personal real estate ($10M). Their annual income of $4M allowed them to enjoy a comfortable lifestyle with $1.2M in annual living expenses, pay their $1.8M annual tax liabilities and reinvest $1M annually into their real estate portfolio.

The 3D Wealth™ Difference

As part of their 3D Wealth™ strategy, Michael and Sarah were able to create a new $92M income and estate tax-free legacy for their children through the death benefit on their joint and survivor whole life policy. This was done with no negative impact to their investment activities by using the leveraged whole life structure, a loan regime split-dollar agreement and a new dynasty trust. Their real estate investment side fund is now appreciating inside their new dynasty trust, along with their new life insurance policies. By deploying a custom 3D Wealth™ strategy, Michael and Sarah were able to:

Retain control over their asset allocation
Reduce lost opportunity costs
Create estate tax efficiencies
Enhance legacy for their children

“Over the years, I have done extensive work … with some of the most prestigious advisors in New York. My accountant, my trusts and estates attorney and my family office - have all worked together on my behalf for many years. I didn't think Scott could offer me anything of real value. That being said, I am extremely grateful for his persistence, which led me to evaluate his unique planning approach.”

Ken M. Mandelbaum
Retired CEO
Mandee and Annie Sez

Creative Planning Strategies

2020-10-26T19:57:50-04:00

Ken M. Mandelbaum
Retired CEO
Mandee and Annie Sez

https://cpsnyc.com/testimonials/ken-m-mandelbaum/

Creative Planning Strategies

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