Explore Rose's story.*

See how Schwab Wealth Advisory™ could potentially help someone like Rose smoothly transition into retirement, navigate tax concerns when purchasing a home, manage her hard-earned 401(k) assets, and establish a lasting legacy for her loved ones.

Photo of Rose with questions overlaid including Can I limit what I pay in capital gains?

About Rose

Photo of Rose floating above icons representing her retirement goals.

Meet Rose, 61, a recently retired oil and gas executive living in California with $7.9 million in assets under management at Schwab. She is divorced with two adult children, ages 32 and 22, and a granddaughter. While excited about this next stage of her life, she also had a lot of questions for her Wealth Advisor about her finances and managing her wealth:

  • Could she afford a new home?
  • Was there anything she could do to limit the amount she'd pay in capital gains taxes?
  • What was the best way for her to provide a lasting financial legacy for her adult children and granddaughter?
  • What was the most financially sound way she could make regular gifts to her family members and charitable organizations? 
  • What was the best course of action for her 401(k)?
  • What should be done with her concentrated positions in her company's stock?

To address these questions, we first zoomed out to look at Rose's entire financial picture and to fully understand her wants and needs. Then we dove in, bringing together specialists to help make sure Rose's wealth strategies were tailored to her 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.

Estate planning

Rose* wanted to determine the most efficient way to make regular gifts to family members now, while ensuring that her overall estate plan was set up to minimize taxes and provide for her heirs in the future.

How Schwab Wealth Advisory helped

We discussed tapping the Internal Revenue Service's (IRS's) Annual Gift Tax Exclusion to give any number of people up to $19,000 a year (in 2025) without requiring her to report a gift tax return that could eat into her lifetime gift and estate tax exemption. Note: The annual gift tax exclusion is typically adjusted to account for inflation each year.

  • Rose's financial plan allowed her to make these gifts while maintaining her desired level of retirement income.
     

We also connected Rose to one of our Tax, Trust, and Estate Specialists to take stock of her financial situation and legacy goals.

  • The Specialist helped Rose add beneficiaries to her Schwab accounts and discussed the option of doing the same with her non-Schwab checking account to avoid probate when she passes.
     
  • We also discussed adding a Beneficiary Deed once she purchases her new home so that it can pass directly to her heirs without going through probate.
     
  • Taking it a step further, the Specialist educated Rose on other estate planning topics that could potentially help her minimize her future estate taxes.

*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.

Estate planning is about more than assets.

See how our personalized approach can help make things easier for the people you love.

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, Richard Velasquez, CFP®, CPWA®, CWS®, standing in front of a window.

 A few years ago I started working with a client, about 75 years old, and they had just inherited a substantial amount of wealth. It was about ten million dollars.

And as we were talking through the goals and objectives at a certain point they stopped me, and they just said 'Rich, I'm 75, we've already raised our family, we've raised our four kids, we're not looking to move into a mansion, we're not looking to take a year long trip around the world, we're happy with where we are right now.'

But the next thing they told me is something that's always stuck with me, and it's something that I've shared with clients to this day. And what he said to me was 'It would have been really nice if we had even had a fraction of this money twenty five or thirty years ago when we were actually raising our family, and we could have really, really used it at that time.'

And what was great about this particular client relationship, is as we talked through this and I really saw what was most important to them, we were able to bring in our Trust and Tax and Estate Specialists that work within Schwab Wealth Advisory, we coordinated with their estate attorney, with their CPA, and we looked at a number of different strategies to find the type of gifting strategy that really was going to make the most sense for this family.

And ultimately what was coordinated was they gave a one million dollar gift to each of their four children, adult children, to be able to use now in their lifetime.

There was still about five or six million dollars left so there's still likely a very large legacy that will also go to their kids. But the fact that they were able to provide this to their loved ones now and see their children actually benefitting, and their grandchildren benefitting from that money now is something that to this day, they still let us know how important that was to them.

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

Estate planning 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, Richard Velasquez, CFP®, CPWA®, CWS®, standing in front of a window.

 A few years ago I started working with a client, about 75 years old, and they had just inherited a substantial amount of wealth. It was about ten million dollars.

And as we were talking through the goals and objectives at a certain point they stopped me, and they just said 'Rich, I'm 75, we've already raised our family, we've raised our four kids, we're not looking to move into a mansion, we're not looking to take a year long trip around the world, we're happy with where we are right now.'

But the next thing they told me is something that's always stuck with me, and it's something that I've shared with clients to this day. And what he said to me was 'It would have been really nice if we had even had a fraction of this money twenty five or thirty years ago when we were actually raising our family, and we could have really, really used it at that time.'

And what was great about this particular client relationship, is as we talked through this and I really saw what was most important to them, we were able to bring in our Trust and Tax and Estate Specialists that work within Schwab Wealth Advisory, we coordinated with their estate attorney, with their CPA, and we looked at a number of different strategies to find the type of gifting strategy that really was going to make the most sense for this family.

And ultimately what was coordinated was they gave a one million dollar gift to each of their four children, adult children, to be able to use now in their lifetime.

There was still about five or six million dollars left so there's still likely a very large legacy that will also go to their kids. But the fact that they were able to provide this to their loved ones now and see their children actually benefitting, and their grandchildren benefitting from that money now is something that to this day, they still let us know how important that was to them.

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)

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

Let’s talk

Tax planning

Rose* wanted to understand her options regarding the appreciated company stock she had in her 401(k) and learn about other options to potentially improve the tax efficiency of her overall portfolio.

How Schwab Wealth Advisory helped

A Schwab Wealth Advisory, Inc. Tax, Trust, and Estate Specialist provided information on strategies that Rose could consider for her 401(k) to better support her overall retirement plan and goals.

  • Because a large portion of her 401(k) plan was appreciated company stock, the Specialist introduced the concept of using a Net Unrealized Appreciation (NUA) Tooltip strategy with a lump sum distribution. This could help lower the amount she may owe in capital gains taxes while providing flexibility in timing her tax liability.
     
  • The Specialist also mentioned additional tax-efficient strategies, such as asset location Tooltip , tax-loss harvesting, and Roth conversions, which Rose could bring up with her tax advisor to help her maximize her after-tax retirement income.

*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.

Banking and credit management

Rose* wanted to buy a new home but was worried about selling her appreciated securities to pay for the home and the potential tax consequences that could follow.

How Schwab Wealth Advisory helped

We connected Rose with Schwab Bank to explore ways to purchase the house she wanted while minimizing taxes from potentially selling appreciated securities.

  • They explored leveraging eligible assets in her portfolio as collateral for a bridge loan while also considering mortgage lending and available margin balance, options she could discuss further with her tax advisor.
     
  • In the end, Rose chose to use a bridge loan to help with purchasing her home, helping her avoid liquidation of highly appreciated securities.
     
  • She was able to access competitive rates with no setup fees or prepayment penalties, avoiding the hassle of a more complicated loan application and tax consequences.

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

Charles Schwab & Co., Inc. does not solicit, offer, endorse, negotiate, or originate any mortgage loan products and is neither a licensed mortgage broker nor a licensed mortgage lender. Charles Schwab & Co., Inc., and Charles Schwab Bank, SSB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.**

Charitable giving

Rose* wanted help with ideas that she could consider to potentially help make her charitable donations more tax-efficient while maintaining her overall financial plan. 

How Schwab Wealth Advisory helped

We discussed her concentrated positions and other ways she could pursue her investing goals—including philanthropic efforts through a donor-advised fund account.

  • We provided insight on how Rose could talk with her tax advisor about potentially getting a tax deduction this year, while allowing time to decide on her end-goal charities.
     

We connected Rose with a DAFgiving360™ Charitable Planning Consultant to walk through the steps of opening an account to contribute cash, appreciated assets, and other investments.

  • Rose learned how a donor-advised fund could be used to enhance family values, while also allowing her to potentially reduce her taxable estate.

*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)

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