

Michael Tuscano

My Mission Statement
DEALING WITH THE CHALLENGE OF ILLIQUID WEALTH
For nearly three decades, Michael has focused on identifying opportunities for his clients, find solutions to their challenges and scaling up his resources to meet their needs and goals. He began his financial services career in 1998, building his business from scratch and joining Morgan Stanley in 2005 in order to gain access to the firm’s broad and deep platform of resources. By choosing to establish his team at Morgan Stanley, Michael has the capacity to bring its full spectrum of financial tools to his clients—both what they need today and what they might grow into in the future.
Michael and his wife, Erica, have three children—Letta, Gray and Rhett—and the family is very active in school, sports and church activities. In his free time, Michael enjoys tournament fishing, free diving and long-distance open-water swimming. He also spearheads the team’s charitable initiatives, including corporate sponsorship of organizations that are very important to his clients.
- Investment: Asset allocation, Asset location, investment management, alternative investments, private portfolio management
- Equity Compensation: Restricted stock sale, portfolio loan, gifting of stock, purchases, 10b5-1 plan
- Business Monetization: Recapitalization, IPO, sale to strategic acquirer, sale to private equity investor, sale to an ESOP
- Risk: Investment and financial, life and disability insurance, life insurance trusts, long term care insurance
- Lending and Cash Management
- Lifestyle: Balance sheet, cash flow, education spending, retirement plans, annuities
- Family Governance and Wealth Education: Governance structures, documents, wealth education plans
- Philanthropy Management: Charitable giving, philanthropic services (advisory, giving, connections)
- Disclaimer: Life insurance, disability income insurance, and long-term care insurance are offered through Morgan Stanley Smith Barney LLC's licensed insurance agency affiliates.
- Morgan Stanley Smith Barney LLC does not accept appointments nor will it act as a trustee but it will provide access to trust services through an appropriate third‐party corporate trustee.
NMLS#: 1301091
Custom Process & Planning
The Cypress Grove Group provides our clients with a distinctive process and an exhaustive planning approach, both tailored to the character and needs of executives and entrepreneurs.
We follow a high-touch process of accountability and frequent reporting that closely mirrors corporate and business operational methods. We supplement the customary four step process—discovery, analysis and recommendation, implementation, and governance—with defined periodic interactions that allow for frequent status and result reviews.
Our planning goes beyond the traditional approach, taking into account the unique needs of our clients. We add executive and business owner planning elements to the traditional package of financial, investment, retirement, wealth and asset protection planning.
Executive Planning
Benefits and Incentive Compensation Analysis
- Types and provisions
- Income tax implications
Stock Options
- Vesting Analysis
- Optional exercise strategies
Concentrated Position Analysis
- Risk analysis
- Diversification strategies
Executive Stock Monetization
- Sales of restricted shares under Rule 144
- Rule 10b5-1 trading plans
- Loans and hedging strategies
Business Owner Planning
Business Needs
- Ownership
- Control and liquidity
- Key opportunities
- Key challenges
Cash Management and Capital Needs Review
- Deposit/ Treasury services
- Lines of credit
- Growth capital
- Key challenges
Retirement and Benefits Assessment
- 401(k), profit sharing an defined benefit plans
- Non-qualified deterred compensation
Risk Management
- Continuity planning
- Buy sell agreements
- Key employee life
- Split-dollar life
Succession or Exit Planning
- Strategic Client Group / Investment Bank (private sale)
- IPO
- Valuation maximization
- Strategic sale
- Financial recapitalization
- Employee stock ownership (ESOP)
The Challenge of Concentrated Stock Positions
There are many reasons you've had a successful career. You're among the best at what you do. You're an innovator. But perhaps most important of all, you're an enterprise leader with the dedication and vision to value the organization's interests as much, if not more than, those of your own unit or department. That's why you've been rewarded with sizable equity compensation in the form of stock grants or options.
While you have additional assets in your retirement plan, other investment accounts, insurance, and real estate, this concentrated stock position in your company represents a significant part of your total wealth. This also represents significant challenges, such as tax implications, liquidity limitations, and potential volatility. You need the help of someone who understands the complex regulations as well as the potential political ramifications surrounding equity compensation.
How We Can Help
The Cypress Grove Group at Morgan Stanley specializes in helping executives manage equity compensation issues and craft bespoke, all-inclusive wealth plans. Drawing on our team's experience and expertise, as well as Morgan Stanley's resources, we help corporate insiders navigate insider trading regulations and reporting requirements.
We can suggest tax-efficient approaches to diversification and strategies to address cash flow needs before stock liquidity is available.
- Exchange Funds: Provide diversification without triggering taxable gains through IRS-approved tax-deferred investment vehicles
- Opportunity Zone Investments
- Donor Advised Funds: Gifting appreciated long-term gain stock to offset income tax in a year when there is a liquidity event
- Portfolio Line of Credit: Borrowing against stock in a portfolio line as needed for immediate cash flow requirements
- 10b5-1 Plans: Preset diversification plans to sell through open and closed windows, approved by legal counsel and executed by third parties
- QSBS Exclusion: Gain from the sale or exchange of qualified small business stock (QSBS) may be 100% excluded from income
THE CHALLENGE OF MONETIZING BUSINESS VALUE
You've devoted yourself to building your own business. It was never really about the money; that was just a way to keep score. It was actually about pursuing your passion, being your own boss, challenging the status quo, and creating something lasting. Through your ingenuity, determination and grit, you've achieved success.
Now you're ready for another challenge, you'd like to spend more time with your family, or both. But you have substantial net worth that's difficult to access. You know your success in business doesn't automatically qualify you to steer your family through this very complex transition. You need advice and guidance from a team with the expertise and experience to help you manage what could be the transaction of a lifetime.
How We Can Help
The Cypress Grove Group at Morgan Stanley specializes in working with entrepreneurs just like you. We help you leverage personal wealth for business growth or liquidity as well as examine potential exit strategies in light of family as well as financial needs.
Drawing on our in-house expertise and the resources of Morgan Stanley we can help you through every stage in the life of a successful entrepreneur:
- Strategic Client Group / Investment Bank (private sale)
- IPO
- Generation: gain access to liquidity for business and personal use through approaches best suited to your needs and circumstances
- Monetization: model alternative strategies to monetize the value of your enterprise and consider how the proceeds hold be structured and invested
- Retirement: calculate cash flow needs, determine post career priorities and implement succession plans for continued family ownership
- Transfer: prepare younger generations with the education and support needed to assume control of family business and philanthropic legacies
Location
Meet My Team
Portfolio Insights
Retirement
- 401(k) Rollovers
- IRA Plans
- Retirement income strategies
- Retirement plan participants
- Annuities
Investing
- Asset Management
- Wealth Planning
- Traditional Investments
- Alternative Investments
- Impact Investing
Family
- Estate Planning Strategies
- 529 Plans / Education Savings Planning
- Long Term Care Insurance
- Special Needs Planning
- Trust Services
Business Planning
- Succession Planning
- Business Planning
- Qualified Retirement Plans
Philanthropy
- Endowments
- Foundations
- Donor Advised Funds
- Impact Investing
Insights and Outcomes
Managing Significant Wealth
- Investment Management
- Wealth Transfer & Philanthropy
- Cash Management & Lending
- Family Governance & Wealth Education
- Signature Access
- Business Services
Private Wealth Management Podcast
- Intergenerational Planning
- Philanthropic Giving
- Non-Traditional Assets
- Managing Family Wealth
Financial Wellness
- Reduce employee stress,
- Improve retention and engagement, and
- Set themselves apart by offering comprehensive financial wellness benefits.
For more information, please see the Morgan Stanley Smith Barney LLC Client Relationship Summary.
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