1917 Palomar Oaks Way, Suite 130 - Carlsbad, CA - 92008 760.431.3040

Please note that the following case study is purely hypothetical and is intended to illustrate the range of services we may provide our financial planning clients. This example may not be representative of all experiences. There is no guarantee of future performance or success. Investing involves risks including possible loss of principal.


In 1990, Ken and Carol purchased an apartment building for $500,000. The property is now valued at $4,000,000 and would trigger over $1,200,000 in capital gains taxes at sale. Now in their 70’s and retired they no longer want to manage the property. They want predictable income, diversification and potential tax reduction.


As their financial planning team, we reviewed their current diversification, income needs and tax situation. Along with their tax professional, we reviewed the options of an out-right sale, a 1031 exchange to another property or a 1031 exchange into institutional-quality, professionally managed DSTs (Delaware Statutory Exchange) that would allow them to defer all capital gains taxes while achieving their other objectives of predictable income, hands-off management and diversification.


For Ken and Carol, the DST Exchange was a perfect option. They successfully completed their 1031 exchange and now own an interest in multiple properties without losing any current dollars to taxes. Their portfolio is significantly diversified by type, geography, number of tenants, income source, etc. Most importantly, their real estate portfolio now provides a steady monthly income and no hassles, which permits them to better enjoy their retirement.

Services provided include

  • Retirement budget projections
  • Lifetime cash flow analysis
  • Investment portfolio design and management
  • Tax optimization
House Built of Money