Client ProfilesHigh Net Worth

We know the perseverance that it takes to make a financially successful life and we have developed strategies that aim to preserve that success for the future. This is how The Lineage Group might work with a high net worth client to plan their financial future without compromising their lifestyle.


A couple in their 60’s saved excessively throughout their career and were looking to retire soon. With $6 million in savings, they were nervous about continuing exposure to the stock market and were looking for help to devise a more conservative plan that would generate moderate income. They wanted to leave a maximum inheritance to their family in the most tax efficient manner and needed an achievable strategy as they planned life in their golden years.


Our first step would be to sit down with the couple to gain a better understanding of their needs. They would hypothetically need about $150,000 of annual income to maintain their lifestyle in retirement. While $50,000 would likely be coming from Social Security each year, we would likely propose establishing a $2 million investment account with the sole purpose of providing $100,000 of annual income without touching the original principal invested in a tax efficient manner.

Given the minimum income required would be generated from the initial account, we would likely recommend additional options for maximizing the use of their other assets. The remaining $4 million could be invested in four equal portions. The first portion could be placed in a fixed index annuity with no fees to deliver downside security from the stock market, while keeping a proportion of the upside potential. For the second portion of their money, we could create a private equity allocation with lower volatility and correlation than the stock market. The third could then be used to create a general investment account and generate balanced growth as a supplement to their income portfolio (and for excessive annual cash needs). We would recommend that the the last portion would be used to fund a life insurance policy that would likely result in a sizeable tax-free benefit to their children.

The final step in the process would be to work with an Estate Attorney to ensure Federal and State estate taxes were avoided when possible. This would potentially leave a maximum inheritance to their family.


This strategic plan would allow this couple to retire comfortably living off of a small portion of their savings. The remainder of their assets would grow without material exposure to the stock market, and the inheritance potential would be maximized in the most efficient manner. On top of that, their savings would potentially grow in case they had the urge to take up new hobbies in retirement.