Who we serve, and what we plan first.
1
Wealth that has to serve more than one generation
We coordinate investments, tax, estate and gifting with your CPA and attorney, and hold family meetings that bring children and grandchildren into the decisions early.
2
Compensation that arrives partly in shares
RSUs, stock options, 10b5-1 plans and concentrated positions, planned around vesting schedules, trading windows and the tax cost of each exit path. Diversification follows a written schedule with dates on it.
3
When most of the family’s wealth is inside the business
Succession, exit and liquidity planning well before a transaction, savings built outside the company, and a plan for the proceeds and the years that follow, including 401(k) and executive benefit design for you and your key employees.
4
A change in the family that changes the plan
Divorce, the loss of a spouse, or the sale of a business. We organize the accounts and assets, set the pace with you, and bring the next generation in when the time is right.
Four situations, and how each one gets handled.
The situation.
A family with significant assets and adult children has estate documents drafted years ago that no one has revisited. The children don’t know what exists or what will be expected of them.
How it gets handled.
We review the documents with the family’s attorney, update and fund the trusts, and hold a family meeting so the next generation understands the plan before any of it passes to them.
The situation.
A senior executive holds a large position in employer stock. It has grown into most of the household net worth, it is subject to vesting schedules and trading windows, and every year the decision gets deferred because the share price keeps climbing.
How it gets handled.
We map the vesting calendar and the trading windows, quantify the tax cost of each exit path, and write a diversification sequence with dates on it. Then we work that sequence with you year over year, so the decision never starts from scratch.
The situation.
An owner expects to sell within a few years. Nearly all of the family’s wealth is inside the company, and little has been saved outside it.
How it gets handled.
We plan the proceeds before there are any: the tax on the sale, savings built outside the business in the meantime, and the income and investments that follow the close.
The situation.
After a divorce or the loss of a spouse, she is responsible for accounts and decisions that used to be shared, in one of the hardest years of her life.
How it gets handled.
We organize every account and document first, separate what has to be decided now from what can wait, and build the plan at her pace, bringing the rest of the family in when it helps.
Questions people ask us.
Can I retire when I want to, or do I need to work longer?
That depends on your savings, your spending and the life you want afterward. We model the scenarios in your eMoney plan so you can see how different retirement dates play out, then adjust the plan as your timing becomes clearer.
How much can I safely spend each year in retirement?
It depends on your savings, your income sources, and how long the money needs to last. We build a spending plan in eMoney that tests different spending levels against a range of market conditions, your risk tolerance and asset allocation. Then we revisit it every year, so you can spend with confidence rather than guesswork.
Am I paying more tax than I need to?
Possibly, and it’s worth finding out. We review how your income, investments and withdrawals are structured, then work with your CPA to identify opportunities and time decisions around the rest of your plan.
What do I do with all this company stock before it becomes a problem?
We start by mapping your vesting schedule, trading windows and the tax cost of each option. From there, we build a diversification plan with dates on it, which may include a 10b5-1 trading plan, and we revisit it with you as your compensation changes.
What should happen to the money when I sell my business next year?
The best time to plan that is before the sale. We look at the tax on the transaction, how the proceeds fit your broader plan, and the income and investments that follow, so you’re ready when the deal closes.
Should I do a Roth conversion, and how much should I convert?
Often the best window is between retirement and the start of required minimum distributions, while your income is lower. We model conversion amounts year by year to fill lower tax brackets without triggering higher Medicare premiums. We also account for California taxing conversions as income. Then we coordinate the timing with your CPA. November – January are most popular!
Which accounts should I withdraw from first in retirement?
The order you draw from taxable, IRA, and Roth accounts can make a meaningful difference in lifetime taxes. We design a withdrawal strategy that blends these “buckets” to manage your tax bracket, Medicare premiums, and cash flow each year. We don’t follow a one-size-fits-all rule.
What is the most tax-efficient way to give to charity?
Most people write checks, but that’s sometimes not the least tax-efficient option. Depending on your situation, donating appreciated stock, using a donor-advised fund, or giving directly from your IRA with Qualified Charitable Donations can stretch your giving further. We help you match the right strategy to your goals and tax picture.
How can I help my children buy a home without tax problems?
There are several ways to do it, including annual gifts, larger gifts that use part of your lifetime exemption, and family loans at IRS-approved interest rates. Each one has different tax, lender, and estate-planning implications. We help you choose the right approach and coordinate with your CPA and attorney, so it’s done correctly.
If something comes up between reviews, who do I talk to?
Call us. You’ll have a dedicated team that knows your plan and your family, and you don’t need to wait for your next review to reach us.
What happens to my family if something happens to me?
We review your estate documents, beneficiaries and insurance together, so you know what’s in place and where the gaps are. When updates are needed, we coordinate with your estate attorney and help keep the work moving.
Is my current advisor doing anything besides managing the account?
A good relationship should include planning, tax and estate coordination, and regular conversations about your life, not just portfolio reviews. If you’re unsure what you’re getting today, a second-opinion conversation is a simple way to find out.
Who holds me to updating the estate documents I have put off for years?
We do. We arrange the meeting with your estate attorney, join you for it, and follow up so the update doesn’t slip back onto the list.
Are my accounts in the right places, or is this just where they ended up?
Many people collect accounts over the years without a plan connecting them. We review what you have, where it’s held and how it’s titled, then organize it around your goals, your taxes and your estate plan.
Is Pelorus the right fit?
Whether you are still building your wealth or already planning what comes next, a first conversation is the easiest way to see how we would work together.