Anna’s decision to sell her ownership stake was rational. The valuation was more than fair, her long-standing business partners were ready to take the company in a new direction, and she was ready to move into a new chapter in life. Financially, though, she was having trouble getting comfortable with the idea of spending down the asset she had built to help support her lifestyle. “This doesn’t feel right – I intuitively get it, but it just feels so different,” she explained.
Replacing income can be as hard for rational reasons as for psychological ones. In Anna’s case, we proposed a portfolio that produced meaningful income – to help her psychologically adjust to the transition from working income to portfolio income. This behaviorally-aware income solution helped alleviate the uncertainty of losing W-2 income. She agreed, and we created a Sunpointe Yielding Strategy Portfolio to fit into her broader financial plan.
