Goal-Aligned Asset Allocation
As advisors, we are motivated and inspired by honesty, trust and a genuine interest in our clients' well-being. Our collaborative and supportive approach allows us to better understand our clients’ lifestyle, liquidity and long-term capital appreciation needs and goals. Based on a platform that is transparent and conflict-free, each client's portfolio is finely customized to satisfy these objectives. A client's risk tolerance and tax profile are woven into this investigative process and an asset allocation model is then engineered to be aligned with these objectives.
The Three L's: Lifestyle, Liquidity, Legacy
One very effective exercise to better understand the dual goals of asset protection and asset growth is to view these objectives as two “buckets” within the same portfolio or asset allocation model. The first bucket is allocated with those assets and appropriate asset classes that are designed to protect a client’s lifestyle and produce any required after tax liquidity. The second bucket is then allocated with those remaining assets and appropriate asset classes to build wealth for future generations and for social and philanthropic initiatives that build a client’s legacy.
At Robertson Stephens, we are well versed in the intricacies of pre-liquidity and post-liquidity planning. Historically, many entrepreneurs and early employees have generally used an initial public offering (IPO) as a means of monetizing their concentrated stock positions. Today, other options may present themselves. For example, employees might have an opportunity to sell their shares privately, or perhaps their company is acquired before the IPO process.
Whichever event may arise, it is critically important to prepare in advance for tax, trust and estate planning issues. We have helped a great many of our clients understand and implement the often complex and detailed plan structures these liquidity events entail.