Food for Thought: A "Liquidity Event" is strictly defined as cashing out of a private company that is going public in an IPO. Liquidity events can be more broadly classified as cashing out of any situation or event where you suddenly come into money. You may be retiring and cashing out your $9 million 401k. Aunt Mabel may have passed and left you her $22 million beachfront La Jolla property that you sell. You may have won the lottery. In this sense, "Liquidity Event" refers to suddenly finding yourself a Beverly Hillbilly. These are life events that happen to all of us blessed with similar First World Problems. These are both emotionally charged and exciting times. There are several things to remember when this type of good fortune comes your way: First, make sure you are properly advised by professionals as you begin to move forward. Second, start financial, legal and tax planning as soon as possible. Third, create or modify your existing financial plan. DIY will only insure that Uncle Sam takes a disproportionate amount of your estate. Contact us if we can help you or your friends. |