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| Our client, a retired executive of a large financial services company, sought to invest in hedge funds and private equity funds, but wanted to understand his cash flow and tax situation before making large commitments. |
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| Expert Advisors Our Executive Tax Services team completed a cash flow analysis of our client's retirement situation, which disclosed that he did have sufficient assets that could be used for such investments. We then worked with his legal and tax advisors to project his tax situation, demonstrating that he would have reduced tax obligations in the future. |
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| Exclusive Access Together with our client's outside advisors, we identified the tax implications of his proposed investments, then helped him understand the impact of hedge fund investments on his tax position, while illustrating the possible estate tax benefits of structuring these investments properly. |
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| Custom Services To help our client take full advantage of his situation and opportunities, our Executive Tax Services team held frequent meetings at his home and office to review the issues, present our analysis and offer guidance. |
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| Backed by our analysis and guidance, our client was able to make informed decisions concerning these alternative investments. He decided to invest in both the management company of a hedge fund, as well as in the underlying fund. Our insights and understanding of the hedge fund industry enabled our client to substantially increase his ownership in the management company. |
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| To learn more about our Tax Management capabilities, contact a specialist at pbig_taxmanagement@ml.com. |
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| This case study is intended to illustrate products and services available at Merrill Lynch. It may not represent the experience of every client, nor does it indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. |
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