Explore Lianne & Luka's story.*

See how Schwab Wealth Advisory™ could potentially help investors like Lianne and Luka support their adult children, prepare for a future home sale, and explore tax-smart strategies for retirement and charitable giving

A couple walking together outdoors, smiling at each other. Speech bubbles beside them read: "How should we prioritize goals?", "How can we diversify concentrated positions?", and "What tax strategies make the most sense?"

About Lianne & Luka

A circular photo of a couple smiling at the camera. Below the photo are three icons: a chart folder, a tax document, and a hand holding a heart.

Meet Lianne and Luka,* recently retired after long careers as executives in the tech and semiconductor industries. Equity compensation was a major part of their pay, with more than half of their $40 million held in concentrated stock positions. Now they have questions on how to reduce that concentration, reduce taxes, and plan for what's next:

  • What investment and planning strategies are available for us to consider?
  • How should we think about the goals and risks most important to us when managing our wealth?
  • What tax-management strategies make the most sense for our situation?

To help bring clarity and structure to their planning, we worked closely with Lianne and Luka to understand their full financial picture, then brought in the right team of Schwab specialists to explore options that matched their goals.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

NOTE: Certain services may be provided by affiliated professionals and third-party firms. Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Diversifying concentrated positions

Lianne and Luka* held a significant portion of their wealth in concentrated stock positions after years of equity compensation. They wanted to reduce risk over time, without creating a large tax bill.

How Schwab Wealth Advisory helped

We started by discussing their long-term goals and appetite for risk, then brought in Portfolio Transition Services to analyze the potential tax impact of selling their concentrated holdings.

  • Together, we established an annual tax budget to unwind their positions gradually—while being mindful of tax brackets and other implications—to help smooth their tax exposure over time.
  • To keep their portfolio aligned with the broader market during this transition, Lianne and Luka adopted a direct indexing strategy. This allowed them to potentially generate capital losses through tax-loss harvesting—helping offset gains from the sale of their concentrated stock—while staying invested in a personalized, diversified way.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Before executing any tax strategies ensure you understand the technicalities and certain risks including unintended tax implications.

Tax planning

Lianne and Luka* wanted to explore ways to reduce their taxable income in retirement while continuing to support causes they care about.

How Schwab Wealth Advisory helped

We met to understand their full financial picture and walked through potential strategies to help manage their taxable income in the years ahead.

  • We explored whether Roth conversions made sense during years when their taxable income was temporarily lower—before they began taking required minimum distributions or Social Security. This could help reduce future tax liability while increasing flexibility in retirement.

We reviewed their portfolio for opportunities to reposition portions of their existing diversified holdings to be more tax efficient. This included strategies such as adjusting asset location Tooltip and applying tax-loss harvesting, along with sharing insights they could bring to their tax advisor to help optimize their annual tax plan.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

Contact your Schwab Financial Consultant or connect with us to learn more.

Let's talk

Charitable giving

Lianne and Luka* wanted to incorporate charitable giving into their long-term plan in a way that aligned with their estate goals and offered potential tax advantages.

How Schwab Wealth Advisory helped

After reviewing multiple approaches, they chose to establish a donor-advised fund (DAF) using appreciated stock from their concentrated position. This allowed them to:

  • Support their favorite causes over time on a flexible schedule.
  • Receive an immediate federal income tax deduction for the full value of their donation.
  • Avoid capital gains taxes on the donated shares.

By incorporating a DAF into their broader financial strategy, Lianne and Luka were able to support the causes they care about—while maximizing the impact of their giving from both a tax and legacy perspective.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

Increase your impact.

See how we can help make your charitable giving simple, efficient, and tax-smart.

The Charles Schwab logo and Wealth Advisory logo appears on an all-white screen. The title reads Professional Wealth Management on Your Terms.

Upbeat music plays throughout.

The logos and text fade away to show Schwab Wealth Advisor, Jaqueline de La Chapelle, CFA®, CWS®, sitting on a stage.

 We don't have a typical client. I really enjoy making a difference in people's lives. It's my passion personally to really do what's best for our clients.

One of our specialties is really making sure that our clients are making the most impact with their hard-earned dollars to the charities that they care about and are passionate about.

I have a client recently who is very charitably inclined and he was telling me that he writes checks to local charities. What he didn't know is that he could increase the impact on those local charities, many of which are really struggling, not by giving cash in the form of a check, which many people do, but rather donating non-cash assets that are highly appreciated.

This was impactful to him because not only could he make more of an impact locally on organizations that he cares about, but for his own situation, not only was it more tax efficient, but he had a lot of highly appreciated stock in companies that have probably seen the better days. So it gave him the opportunity to really refresh his portfolio by jettisoning those names in a tax efficient way.

You know, and I think ultimately it, it really optimized what they were trying to accomplish. Reduce their tax bill and, you know, keep a legacy of charitable giving going.

The screen fades to white and the following disclosures fade onto the screen:

Schwab Wealth Advisory™ ("SWA") is a non‐discretionary investment advisory program sponsored by Charles Schwab & Co., Inc. ("Schwab"). Schwab Wealth Advisory, Inc. ("SWAI") is a Registered Investment Adviser and provides portfolio management for the SWA program. Schwab and SWAI are affiliates and are subsidiaries of The Charles Schwab Corporation.

Portfolio Management provided by Schwab Wealth Advisory, Inc., a Registered Investment Adviser and affiliate of Charles Schwab & Co., Inc. (Schwab). Please read the Schwab Wealth Advisory and the Schwab Wealth Advisory, Inc. Disclosure Brochures for information and disclosures about this program. The Wealth Advisor, Associate Wealth Advisor, and other representatives making investment recommendations in your Schwab Wealth Advisory accounts are employees of Schwab Wealth Advisory, Inc.

This information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Information provided herein is for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

Financial Planning consultations are conducted by employees of Schwab Wealth Advisory, Inc. ("SWAI") or Charles Schwab & Co., Inc. ("Schwab") depending on the complexity of your financial situation. SWAI and Schwab are Registered Investment Advisors and wholly owned subsidiaries of the Charles Schwab Corporation.

Certain services may not be provided by affiliated professionals and third party firms. Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Asset allocation and diversification strategies do not ensure a profit and do not protect against losses in declining markets.

© Charles Schwab & Co, Inc., Member SIPC. All rights reserved.

(0924-KPP9)
Video Transcript

Charitable giving with a Wealth Advisor

The Charles Schwab logo and Wealth Advisory logo appears on an all-white screen. The title reads Professional Wealth Management on Your Terms.

Upbeat music plays throughout.

The logos and text fade away to show Schwab Wealth Advisor, Jaqueline de La Chapelle, CFA®, CWS®, sitting on a stage.

 We don't have a typical client. I really enjoy making a difference in people's lives. It's my passion personally to really do what's best for our clients.

One of our specialties is really making sure that our clients are making the most impact with their hard-earned dollars to the charities that they care about and are passionate about.

I have a client recently who is very charitably inclined and he was telling me that he writes checks to local charities. What he didn't know is that he could increase the impact on those local charities, many of which are really struggling, not by giving cash in the form of a check, which many people do, but rather donating non-cash assets that are highly appreciated.

This was impactful to him because not only could he make more of an impact locally on organizations that he cares about, but for his own situation, not only was it more tax efficient, but he had a lot of highly appreciated stock in companies that have probably seen the better days. So it gave him the opportunity to really refresh his portfolio by jettisoning those names in a tax efficient way.

You know, and I think ultimately it, it really optimized what they were trying to accomplish. Reduce their tax bill and, you know, keep a legacy of charitable giving going.

The screen fades to white and the following disclosures fade onto the screen:

Schwab Wealth Advisory™ ("SWA") is a non‐discretionary investment advisory program sponsored by Charles Schwab & Co., Inc. ("Schwab"). Schwab Wealth Advisory, Inc. ("SWAI") is a Registered Investment Adviser and provides portfolio management for the SWA program. Schwab and SWAI are affiliates and are subsidiaries of The Charles Schwab Corporation.

Portfolio Management provided by Schwab Wealth Advisory, Inc., a Registered Investment Adviser and affiliate of Charles Schwab & Co., Inc. (Schwab). Please read the Schwab Wealth Advisory and the Schwab Wealth Advisory, Inc. Disclosure Brochures for information and disclosures about this program. The Wealth Advisor, Associate Wealth Advisor, and other representatives making investment recommendations in your Schwab Wealth Advisory accounts are employees of Schwab Wealth Advisory, Inc.

This information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Information provided herein is for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

Financial Planning consultations are conducted by employees of Schwab Wealth Advisory, Inc. ("SWAI") or Charles Schwab & Co., Inc. ("Schwab") depending on the complexity of your financial situation. SWAI and Schwab are Registered Investment Advisors and wholly owned subsidiaries of the Charles Schwab Corporation.

Certain services may not be provided by affiliated professionals and third party firms. Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Asset allocation and diversification strategies do not ensure a profit and do not protect against losses in declining markets.

© Charles Schwab & Co, Inc., Member SIPC. All rights reserved.

(0924-KPP9)

Estate planning

Lianne and Luka* wanted to make sure their daughter was provided for and that their estate plan reflected their values, priorities, and long-term goals.

How Schwab Wealth Advisory helped

We began by reviewing their existing trust documents with the Tax, Trust, and Estate team and encouraged Lianne and Luka to bring their daughter into the discussion. This helped ensure she understood the family's overall planning strategy and could carry it forward in the future.

To create dependable income for their daughter and manage the tax impact of diversifying concentrated stock, we suggested a Charitable Remainer Trust (CRT). The CRT provided her with an income stream, minimized taxes on the sale of appreciated assets, and designated that any remaining assets at the end of the trust would go to the donor-advised fund the family was establishing.

Finally, we helped them revisit personal spending priorities and modeled different scenarios so they could confidently enjoy more of their wealth during their lifetime while still planning for a lasting legacy.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

Employees of Schwab Wealth Advisory, Inc. are not estate planning attorneys and cannot offer tax or legal advice, or create and prepare legal documents associated with such plans. Where such advice is necessary or appropriate, please consult a qualified legal or tax advisor.

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