Successful entrepreneurs possess unique skills that are well-suited for creating, building and running a business. However, these skills are often put to the test after the business has been sold. Creating wealth and managing wealth require very different abilities. This case study examines one wealth creator, Susan Farber, who built a profitable enterprise, sold her company and sought the advice of Marble Harbor Investment Counsel to oversee her liquid assets.

We always start with the premise that each client has distinct financial needs that do not necessarily fit neatly into a prefabricated package. We first established that preserving capital with a goal of producing ample income to live on was Susan's primary objective. Her second objective was to seek capital appreciation. We also concluded that Susan was a risk taker as an entrepreneur but a risk avoider once she created her wealth.

With these financial goals in mind, we agreed that owning a portfolio of high-quality companies and investment-grade bonds was one of the best ways to generate a steady income stream. We further counseled that owning stocks that consistently increase their dividends would boost her income over time, while investment grade bonds would provide stability and liquidity during volatile periods in the stock market. Finally, we developed a timetable to invest Susan's cash over a prudent period, during which time we could accelerate or decelerate our periodic investment program depending on economic and market conditions.

Overall, the success of this relationship is based on our ability to identify Susan's unique needs and then develop an investment plan to suit them. It seems like a simple task. But achieving simplicity can be quite difficult. Given that each client has different needs and circumstances, we work diligently to first understand, then educate and finally implement a collaborative plan that requires commitment, effort and discipline. Properly executed, our plan has helped Susan in her transition from entrepreneur to investor.