Senior Executive nearing retirement with three college-age children
This client of the K&B group has been working with us for many years. His company offered him an early retirement plan and he needed a strategy to maintain the standard of living he provided for his family. He was also concerned with organizing a college education for his 3 children, each of whom aspires to study abroad in the near future.
First, in order to receive a fixed income and maintain his standard of living, we helped him modify the allocation of his stock portfolio. We recommend having a greater proportion of alternative funds in private debt to reduce volatility and correlation with financial markets.
Second, we structure education trusts for each of your children, for several reasons :
– Peace of mind: the client can forget about the daily management of the expenses of their 3 children who live and study in countries with different currencies and languages. The trustee, according to a pre-established schedule, proceeds to the payment of all educational and maintenance expenses (accommodation, food, health insurance etc.)
– Protection: it is assured that the children will be able to fulfill their university studies since the funds are unseizable and can only be used to fulfill the objective stated in the trust contract.
– Control : thanks to the quarterly expense reports prepared and sent by the trustee.
– Education : through the reports that serve as financial education tools, the children learn to manage their budget.