The ‘suddenly I’ve made it big’ plan.
My business was my life.
Then, out of the blue, I get an
offer I can’t refuse. And I’m
left thinking – now what?
Conor, 51
Software Entrepreneur
For 15 years, I ploughed every penny back into
the business. My income, my home, and my family’s
lifestyle were all dependent on its success.
I never thought about life after business; business
was everything. Then the phone rang…
The ‘suddenly I’ve made it big’ plan.
My business was my life.
Then, out of the blue, I get an
offer I can’t refuse. And I’m
left thinking – now what?
Conor, 51
Software Entrepreneur
For 15 years, I ploughed every penny back into
the business. My income, my home, and my family’s
lifestyle were all dependent on its success.
I never thought about life after business; business
was everything. Then the phone rang…
The Realisation of Wealth
It turns out my business had been on the radar of a
tech giant for a few years. The offer was mind-blowing.
It took me weeks to get my head around the amount
of money on the table.
I kept asking myself all these questions, questions that
went way beyond minimising tax.
- What do I do with all this money?
- Will my wealth affect my daughter’s ambition?
- What are the hidden risks to my wealth?
- What are the implications if we move abroad?
- How do I protect the wealth for generations to come?
- How do I equip my daughter to take care of the wealth?
Obviously, I had
an accountant who was
my go-to-person for
financial queries,
but this was a whole
new ball game.
The Realisation of Wealth
It turns out my business had been on the radar of a
tech giant for a few years. The offer was mind-blowing.
It took me weeks to get my head around the amount
of money on the table.
I kept asking myself all these questions, questions that
went way beyond minimising tax.
- What do I do with all this money?
- Will my wealth affect my daughter’s ambition?
- What are the hidden risks to my wealth?
- What are the implications if we move abroad?
- How do I protect the wealth for generations to come?
- How do I equip my daughter to take care of the wealth?
Obviously, I had
an accountant who was
my go-to-person for
financial queries,
but this was a whole
new ball game.
The Search for Advice
I was walking Coco when the penny dropped. I’d swapped the responsibility of managing a company for the responsibility of managing capital. And that was a job I was simply not equipped to do.
Naively I searched online for a wealth manager –
not surprisingly, they all claimed to be ‘trusted advisers.’
So, I shared the dilemma with a friend. He simply said:
‘Stop searching online, start talking to Goodbody.’
The Search for Advice
I was walking Coco when the penny dropped. I’d swapped the responsibility of managing a company for the responsibility of managing capital. And that was a job I was simply not equipped to do.
Naively I searched online for a wealth manager –
not surprisingly, they all claimed to be ‘trusted advisers.’
So, I shared the dilemma with a friend. He simply said:
‘Stop searching online, start talking to Goodbody.’
The Goodbody Advice
Wealth preservation first.
When you’ve realised the dream, you don’t need to take the
same level of risk as when you were chasing the dream.
Conor’s wealth engine was no longer his business; it was his capital.
So, our advice is always underpinned by the principle of wealth preservation.
Conor and his wife, Deirdre, have wealth that will outlast their lifetimes.
They needed a plan to ensure their daughter, Lauren, would have too.
The Goodbody Advice
Wealth preservation first.
When you’ve realised the dream, you don’t need to take the
same level of risk as when you were chasing the dream.
Conor’s wealth engine was no longer his business; it was his capital.
So, our advice is always underpinned by the principle of wealth preservation.
Conor and his wife, Deirdre, have wealth that will outlast their lifetimes.
They needed a plan to ensure their daughter, Lauren, would have too.
Protecting the family legacy
The discretionary trust acted to help protect Lauren against bad decision making and unwanted outside influence. It also allowed her to manage her tax liability.
For Conor, keeping his wealth in the family was his
overriding objective.
Inadequate succession was the immediate risk, so we proposed a number of strategies to protect Lauren’s inheritance for her and future generations:
A discretionary will trust removed the immediate risk of inheritance tax and ensured the majority of Lauren’s future wealth would be managed in accordance with Deirdre and Conor’s wishes.
We also made use of their existing corporate structure in which Conor and Deirdre were issued preference shares, and Lauren was issued ordinary shares.
Lauren’s shares only entitled her to the future uplift in the value of the corporate. This meant that she needed to contribute to the future success of the company.
A Section 72 policy was put in place to cover any residual inheritance tax payable that Lauren may face which was very important to Deirdre and Conor.
Protecting the family legacy
The discretionary trust acted to help protect Lauren against bad decision making and unwanted outside influence. It also allowed her to manage her tax liability.
For Conor, keeping his wealth in the family was his
overriding objective.
Inadequate succession was the immediate risk, so we proposed a number of strategies to protect Lauren’s inheritance for her and future generations:
A discretionary will trust removed the immediate risk of inheritance tax and ensured the majority of Lauren’s future wealth would be managed in accordance with Deirdre and Conor’s wishes.
We also made use of their existing corporate structure in which Conor and Deirdre were issued preference shares, and Lauren was issued ordinary shares.
Lauren’s shares only entitled her to the future uplift in the value of the corporate. This meant that she needed to contribute to the future success of the company.
A Section 72 policy was put in place to cover any residual inheritance tax payable that Lauren may face which was very important to Deirdre and Conor.
Investing to Preserve Wealth
Many wealth managers apply one investment strategy to a
client’s entire wealth, exposing it all to the same level of risk.
However, a client like Conor, needs
and deserves a far more considered approach.
We call it ‘Multi-purpose investing.’
Multi-purpose investing.
At Goodbody, we divide a client’s wealth into three segments:
Essential, Desirable and Aspirational. Each segment has a distinct purpose,
and each segment is invested differently in accordance with its purpose.
1. Essential
The purpose:
To meet the ‘essential income’ needs of the client over the next 5 – 10 years, so the underlying strategy is designed to provide the necessary level of liquidity.
17% of Conor’s wealth was invested in high-grade bonds and positive yielding bond funds and multi-asset funds to meet his drawdown needs of €180k p.a.
2. Desirable
The purpose:
To achieve moderate growth of the wealth within the segment by constructing a diversified portfolio designed to deliver enhanced returns.
60% of Conor’s wealth was invested in a core portfolio of liquid global equities, property and bonds.
3. Aspirational
The purpose:
To generate surplus capital to secure a family legacy by investing in less liquid assets, venture capital, and special situations over the long term.
23% of Conor’s wealth was invested in concentrated, venture capital opportunities
Multi-purpose investing made immediate sense. Goodbody summed it up beautifully – ‘Why risk all your capital chasing performance when you don’t need to.’
Investing to Preserve Wealth
Many wealth managers apply one investment strategy to a
client’s entire wealth, exposing it all to the same level of risk.
However, a client like Conor, needs
and deserves a far more considered approach.
We call it ‘Multi-purpose investing.’
Multi-purpose investing.
At Goodbody, we divide a client’s wealth into three segments:
Essential, Desirable and Aspirational. Each segment has a distinct purpose,
and each segment is invested differently in accordance with its purpose.
Multi-purpose investing made immediate sense. Goodbody summed it up beautifully – ‘Why risk all your capital chasing performance when you don’t need to.’
A Final Thought From Conor
I view Goodbody as my personal board, they advise, and I decide. The relationship works because they understand it’s never just about wealth, but it is always about family.
A Final Thought From Conor
I view Goodbody as my personal board, they advise, and I decide. The relationship works because they understand it’s never just about wealth, but it is always about family.
What’s your plan?
Please contact us if you think your life could be enriched by a financial plan.
