Diversification and Discretion For Busy Finance Executives

Susan Rice

Susan and her partner, Imani, are both busy executives with two children. Susan works in the investment division of an asset management firm. Because of her role, she needs an advisor who can have discretion over her investments to keep the compliance challenges to a minimum.

Imani, on the other hand, is a serial entrepreneur and always has a new idea she is working on. She would prefer to have little to do with their long-term finances as she is focused on her current projects.

Susan and Imani are both approaching their 60’s and retirement is on the horizon. Susan knows the future is uncertain and now is the right time to put a financial strategy in place for their family.

How Artemis Helped

  • We put a diversification plan in place to start systematically selling down the concentrated stock position in Susan’s portfolio.
  • We opened a SEP IRA for Imani, given some recent success in a startup investment.
  • We did a life insurance needs assessment and an audit of all the life insurance policies that Susan had been accumulating over the years as executive perks and examined the role of the whole life policies she owned.
  • We created a portfolio performance report of all the different investments Susan held, including some private equity stakes, a hedge fund investment, and their combined retirement portfolio.
  • We opened new trust accounts and funded them with assets to meet the requirements of their estate plan.
  • We opened a donor-advised fund and transferred some complex assets into it. Susan received a tax benefit and a pool of assets to be used for future philanthropic endeavors.
  • We overhauled Susan’s current asset allocation, which was heavy in cash as a result of her inability to sell some of the stocks she owned (due to her role at the investment firm).

How Susan Benefited

  • Susan had way too much life insurance, and was able to cash in numerous policies, save $25,000 in premiums and still have enough coverage to take care of her family if something happened.
  • She found a trusted advisor who could help her wade through the financial complexity of her life. She gained comfort knowing that Imani would also have support if something ever happened to her.
  • Her estate plan, which was recently completed, had a long list of “to do’s” associated with it; Artemis took over the implementation of those items.
  • Susan finally had a retirement portfolio that she thought was properly diversified and an asset allocation she wanted.
  • Since Artemis had discretion over her retirement portfolio, they were able to make all of the changes Susan wanted to implement but was unable to make due to her compliance constraints.
  • Susan had recently been promoted and was able to participate in the executive compensation plan. Artemis helped her think through titling of assets to make sure they were in line with her estate plan.

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