Client has been working in a large private company for the last 45 years. He is now CEO and due to retire in the next 5 years. Over the years he has accumulated large number of the company shares as ESOPs. Due to his busy schedule, he has not been able to give his finances the time it deserves. All his other savings are either in the form of cash or land in his hometown. He has only one daughter who is married and settled in Australia. Now he would like to set his finances in order and build an alternate stream of income during his retirement as his company does not have provisions for pension. He would like to be able to use the income and some part of capital (for adhoc expenses) and ultimately pass on the portfolio to his daughter after his lifetime. Also, when he is no longer at the helm of the company, he does not wish to have so much exposure to its shares.

Our process – After several meetings to fully understand the Clients goals, tolerance for risk, income needs and estate plans, we modelled a plan encompassing investment, distribution schedules, cash flow and risk management. We developed a model to reduce the company stock concentration while managing the volatility.