Aug 22, 2025
Client Background
A working-age client with a strong income approached us to refine their financial strategy. They were charitably inclined and held a significant portfolio of appreciated stock. Their goal was to maximize their charitable impact while optimizing their tax situation.
Challenge
The client’s itemized deductions were close to the standard deduction, meaning they weren’t fully leveraging their charitable contributions for tax benefits. Donating cash would have required selling appreciated stock, triggering capital gains taxes and reducing the amount available for charity.
Solution
We implemented a “bunching” strategy using a Donor-Advised Fund (DAF). Every other year, the client donated a large amount of appreciated stock to the DAF, which sold the stock tax-free, allowing them to claim a full charitable deduction based on the stock’s market value. In those years, they took the itemized deduction, which exceeded the standard deduction. In alternate years, they took the standard deduction and distributed funds from the DAF to their chosen charities, maintaining their annual giving without additional stock contributions.
Why Donate Appreciated Stock to a DAF?
Donating appreciated stock to a DAF allows you to contribute the full market value of the stock without incurring capital gains taxes, as the DAF sells the stock tax-free. This maximizes your charitable deduction and the funds available for your chosen causes.
By bunching deductions into a single year, you can exceed the standard deduction, significantly reducing your taxable income in that year, while still supporting charities annually through DAF distributions in subsequent years, when you take the standard deduction.
Results
This approach allowed the client to increase their charitable impact while reducing their tax liability. By alternating between itemized and standard deductions, they optimized their tax savings and maintained consistent support for their charities. The strategy provided flexibility and aligned their giving with their financial goals.
Are you maximizing the tax benefits of your charitable giving? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.
Aug 22, 2025
Client Background
A client in their 60s, a non-executive employee of a company, held a concentrated stock position in their employer’s shares. They approached us to review their retirement portfolio.
Challenge
The client’s portfolio was heavily concentrated in one stock, which had multiplied in value, fueling their belief in the company’s future. However, this concentration posed significant risk, especially as they neared retirement, as a single company’s failure could devastate both their job and investments.
Solution
We advised diversifying their portfolio to reduce risk, emphasizing that even strong companies can face unexpected challenges. We recommended gradually selling portions of the concentrated stock and reinvesting into a diversified mix of assets aligned with their retirement goals. Unfortunately, the client chose not to follow this advice.
Results
The company faced an accounting scandal and went bankrupt, rendering the client’s stock worthless. They lost both a significant portion of their retirement savings and their job, severely impacting their retirement plans. Had they diversified, their nest egg would have been preserved despite the job loss. This underscored the importance of diversification, regardless of confidence in a single company.
Is your portfolio exposed to unnecessary risk? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.
Aug 22, 2025
Client Background
A client in their 40s and 50s, with 20 years of career changes, approached us to organize their scattered financial accounts.
Challenge
The client had multiple 401(k)s with various investment companies and several bank accounts, causing confusion and administrative burdens. They wanted a streamlined approach for easier management and beneficiary planning.
Solution
We consolidated their 401(k)s into a single IRA, managed with an investment strategy aligned with their risk tolerance and time horizon. We also streamlined their savings and checking accounts into fewer, more manageable accounts, ensuring clear beneficiary designations and simplified oversight.
Results
The consolidation simplified the client’s financial life, reducing administrative complexity and improving oversight. The unified IRA allowed for cohesive investment management, and clear beneficiary designations eased future transitions for their heirs.
Are your finances overly complicated? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.
Aug 22, 2025
Client Background
An older client worried they couldn’t retire at their desired lifestyle due to limited savings and a short runway to retirement.
Challenge
The client’s savings and expected returns were insufficient to fund their retirement lifestyle. They needed to adjust key variables—savings rate, retirement age, or lifestyle expectations—to achieve their goals.
Solution
We performed a retirement analysis to evaluate their assets, liabilities, income, and expenses. We identified actionable variables: increasing savings, delaying retirement, or reducing retirement expenses. Together, we prioritized delaying retirement by a few years and boosting savings, balancing their current lifestyle with future security.
Results
By adjusting their retirement timeline and savings rate, the client significantly improved their retirement outlook. The clear plan provided confidence, and our annual monitoring ensured they remained on track, adapting to any changes in their circumstances.
Are you unsure which retirement variables to adjust? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.
Aug 22, 2025
Client Background
A young couple with children, just starting their financial journey, sought our help to balance saving for education, retirement, and asset protection.
Challenge
With a low-rate mortgage and dual incomes, the couple faced competing goals: funding their children’s education, saving for retirement, and protecting their growing assets. Limited liquidity posed a challenge for short-term needs.
Solution
We prioritized asset protection by securing life insurance and confirming employer-provided disability insurance. We recommended contributing to a Roth 401(k) for tax-free retirement savings and a non-retirement investment account for long-term, liquid growth. For education, we recommended automatic monthly contributions to a Colorado 529 plan, balancing flexibility and tax benefits.
Results
The couple built a solid financial foundation, with protected assets, tax-efficient retirement savings, and a flexible education fund. Their liquid investment account provided short-term security, while our ongoing guidance ensured that their plan evolved in line with their family’s needs.
Are you starting your financial journey? Contact Michael Brady for a personalized consultation to discuss how your wealth can align with purpose and possibility.
