The Draper's Case Study

Mr. Draper & Mrs. Draper- Business Owners

Combined income - $400k
Net Worth - $10mm
Wealth Management Interest - Cash Flow Planning / Tax Optimization / Philanthropy

John & Mary Draper had planned on running their manufacturing business another decade or two when an offer they couldn’t refuse came in. While excited, they now needed to figure out how to best replace their income and minimize their tax bill from the business sale. They also had a desire to do good with their money and support local charities. Given a large portion of their net worth was tied up in their business, they didn’t have a lot of investing experience and were anxious about investing in the stock market.

Combined income - $400k
Net Worth - $10mm
Wealth Management Interest - Cash Flow Planning / Tax Optimization / Philanthropy

When we met the Draper’s, they had many questions swirling around in their minds. First, we helped them develop a spending plan their portfolio would support. Then, we set them up with a Donor-Advised Fund which accelerated their future charitable giving into the same tax year as the business sale and significantly reduced their tax bill. In developing their portfolio strategy, we spent a lot of time educating them on the different types of investments, what they represent, and what they could reasonably expect in terms of risk and return.

With the Draper’s financial plan in place, they were able shift their focus to joining non-profit boards and giving back to their community.

$450k+

Initial investment

$3.6m+

Current retirement funds

7 Yrs

Duration Of Investment

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Important Disclosure: Case studies presented are hypothetical scenarios and intended for illustrative purposes only. They do not represent an actual client or an actual client’s experience, but rather are meant to provide an example of Pecaut’s process and methodology. An individual’s experience may vary based on his or her circumstances. There can be no assurance that the Firm will be able to achieve similar results in comparable situations. No portion of this case study is to be interpreted as a testimonial or endorsement of the Firm’s investment advisory services, and it is not known whether the hypothetical clients referenced approve of the Firm or its services. The information contained herein should not be construed as personal investment advice.