How to Set Up Post-Exit Wealth Management

Structure wealth management after selling your business with asset allocation, tax planning, and professional team assembly.

1. Park proceeds and map your new financial picture. Move sale proceeds into FDIC-insured accounts or Treasury bills while you plan. Calculate your new net worth, annual spending needs, and tax obligations from the sale. Most exits generate 15-30% immediate tax liability depending on structure and holding period.
2. Assemble your wealth management team. Hire a fee-only fiduciary financial advisor, tax-focused CPA, and estate planning attorney within 90 days. Interview 3-5 candidates in each category. Expect to pay 0.5-1.5% annually for advisory services on portfolios above $1M.
3. Design your asset allocation framework. Allocate across 4-6 categories: cash/short-term bonds (6-24 months expenses), domestic stocks, international stocks, bonds/fixed income, real estate, and alternatives if over $5M. Your age and risk tolerance drive the stock/bond split, typically 60-80% equities for exits under age 55.
4. Execute tax optimization strategies. Maximize retirement account contributions, consider tax-loss harvesting, and evaluate municipal bonds if you're in high tax brackets. If proceeds exceed $13M+ per person, implement estate planning strategies immediately. Donor-advised funds can provide immediate tax deductions for charitable goals.
5. Implement systematic withdrawal planning. Plan withdrawal rates of 3-4% annually for portfolios supporting 25+ year timelines. Set up automated rebalancing quarterly or when allocations drift 5+ percentage points. Establish bucket strategies with 1-3 years of expenses in cash equivalents.
6. Monitor and adjust quarterly. Review portfolio performance, rebalancing needs, and spending rates every quarter. Annual reviews should assess allocation changes, tax strategy updates, and estate planning modifications. Track your withdrawal rate against portfolio performance to maintain sustainability.