Broker Check

Too Many Cooks In The Kitchen

The Background:

Carolyn had spent her entire adult life developing and nurturing her business in the southeast from a small startup to a multimillion-dollar company. When she sold the company, she continued to use her knowledge and strengths to remain invested in several companies throughout North America. Carolyn was introduced to the Brayshaw Financial Group through her insurance provider who felt that she needed a second opinion on her entire financial picture.

We began our engagement with Carolyn through a simple phone call to discuss the general overlay of her investments and the companies involved. During that call, we were able to ascertain what initial documents we would need to provide a detailed analysis of her holistic financial picture. Our first round of work provided clues that planning was either not being done or overlooked. After a thorough review, including multiple years of tax returns, several issues were discovered. 

Carolyn’s prior and current business ventures had produced a large number of passive losses.  This was being overlooked by her team of advisors and was not addressed in her investment portfolio. With the annual tax deduction limitations on passive losses being only $3,000 per year, Carolyn was not capturing the large tax savings she should be. She was alarmed by the oversight and confirmed our findings with her CPA. With this discovery and our presentation of customized fiduciary oversight and investment strategy, Carolyn decided to ask Brayshaw Financial Group to fully manage her financial life.

The Brayshaw Financial Complete Wealth Management Approach:

  1. We began by reviewing our findings with Carolyn and consulting and confirming issues with her CPA.
  2. We then presented several strategies to build passive income allowing Carolyn to deduct her carry forward losses up to the income produced. This would essentially make the income that was received from this investment tax-free by utilizing deductions she already had.
  3. The Brayshaw team remedied her other investments to provide a solution that protected retirement income from market volatility for a portion of her portfolio.
  4. We maintain an ongoing relationship with Carolyn providing fiduciary oversight and continual consultation on investments and tax concerns for her business and real estate holdings.