☕ Good morning and wishing you a Happy Thanksgiving!

Maybe it’s today, maybe it’s one day, but with all the hard work you’ve been putting into your job and a little bit of luck, you’ll cross your financial finish line. 

Whether you’ve already hit a major financial milestone or are steadily climbing toward it, knowing how to handle a significant wealth event can be a game-changer. 

Maybe the business you’ve helped build finally sells, cash in on those stock options, or land a big investment win. 

What happens next?

As surreal as this moment may feel, it’s just the start of a new race. This time, though, the goal is to make your hard-earned money work for you strategically, sustainably, and in a way that means you never have to start another race. 

Let’s talk about some smart actions to take immediately after a liquidity or exit event. 

Spoiler: it doesn’t start at a luxury car dealership or an oceanfront villa!

🛡️ First, ground yourself and lock down stability. 

The first months after a financial gain—big or small—are all about smart choices. 

Taxes are the biggest “enemy” of a windfall. Consulting with a tax pro can help you estimate your obligations and explore ways to lower that bill, like tax-loss harvesting or using deductions. 

Next, look at your debt on your balance sheet. Prioritize the highest-interest items, like credit cards. Low-interest debt, like some mortgages, might be worth keeping if your investments can deliver better returns. 

Simultaneously, consider expanding your emergency fund if you see your lifestyle changing so it covers new or higher costs without affecting long-term goals.

📈 Enter growth mode for the long haul.

Once your base is set, it’s all about intentional growth. 

Many people in this position realize their wealth is concentrated in a single stock or industry—a common story if you’ve gained through company shares or a focused portfolio; there’s a need to spread out risk. 

Selling off all at once could result in a steep tax bill, so a gradual approach keeps gains steady while limiting taxes. For steady income, real estate or dividend-focused stocks can help generate the cash flow needed.

Money markets or index funds are great options for balancing things out. 

When you’re ready, other choices like private equity or real estate funds can provide additional returns, but they tend to be best for portfolios with a cushion, as these can tie up cash longer.

🪣 To keep more of what you earn, use the “three-bucket” method:

🚰 Tax-Deferred Accounts: Max out your 401(k) or traditional IRA to get upfront tax savings and let your money grow until retirement.

🚰 Tax-Free Accounts: Roth IRAs offer tax-free withdrawals later. If income limits prevent regular contributions, look into a Backdoor Roth IRA. 

🚰Taxable Accounts: Brokerage accounts are a seesaw between flexibility and tax hits. Tax-loss harvesting (selling underperformers to offset gains) can soften that blow. 

Life Insurance Retirement Plans (LIRPs) can also provide tax-free withdrawals through loans, giving you flexibility outside of standard retirement accounts.

🏛️ Assemble a financial dream team.

Making the most of a major liquidity event or managing sizable assets requires more than just one person’s expertise.

Can a single person handle everything self-directed? Sure, but even the most savvy, hands-on investor is limited by time and knowledge. 

With wealth comes complexity, and managing that wealth well isn’t about DIY—it’s about building a team that complements your goals with specialized skills. 

 A top-notch advisory team isn’t just for billionaires; it’s essential for anyone serious about preserving and growing wealth efficiently. 

Here’s a breakdown of the roles that will elevate your financial foundation:

A financial planner is your main guide for translating goals into strategies, helping you chart a course, and formalize a central hub for your financial decisions.

A tax advisor keeps your tax bill low and your liabilities in check, especially when windfalls, stock options, or high-earning years start stacking up.

An estate attorney can help structure trusts, wills, and transfers that protect your wealth for future generations.

An investment strategist could be part of your financial planning team or a standalone role, specializing in portfolio structure, asset allocation, and diversification.

Pro Tip: Not all advisors are created equal. Look for those with proven experience in high-net-worth or complex financial scenarios.

Making Sense of Liquidity and Exit Event Strategies

Achieving a liquidity event is a milestone, but the real achievement is managing wealth so that you’ll never have to “work for money” again. 

Think of your financial portfolio as a business where every dollar works with purpose, providing for you today and building a legacy for the future. 

With a solid foundation, a structured decision-making framework, tax-smart planning, and an expert team, you’re equipped to handle any opportunity or challenge that comes your way.

Maximize Your Post-Exit Wealth Strategy

After a major liquidity or exit event, ensuring your wealth works for you is crucial. Our new Financial Plan Assessment offers a personalized deep-dive into your current financial strategy, highlighting potential gaps and providing actionable insights tailored to your goals. 

In just 10 quick questions, you’ll receive a customized report on enhancing tax efficiency, wealth management, and securing your long-term financial health—all in under two minutes and at no cost.

Happy Thanksgiving!

I’m incredibly thankful for each of you in the Making Sense of Your Money community. Your support and engagement have made this year truly special, and I’m excited to keep growing together. Wishing you a joyful and abundant holiday!

Stay savvy, stay proactive, and keep your financial future bright.

Until next week!

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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