I heard an interesting fact the other day: The average American will work for the same employer for four years. Unless you only have a few working years left, there is a high probability that you won’t be employed by your current company when work becomes optional for you. This is why rollover and exit strategies are something you seriously need to consider and discuss with your wealth manager before opting into retirement accounts offered by your employer, especially executive deferred compensation plans.
Estate planning is an essential part of an executive’s wealth management strategy both while you are here on this earth and when your legacy outlives you. As a wealth manager to executives and their families, I am frequently asked about estate planning and how it fits into an overall financial plan.
One of the frequent questions I field as an executive financial advisor involves understanding the difference between deferred compensation plans vs. 401(k) plans. The short answer is that there are pros and cons to both, which is why I’d like to explore these differences in more detail.
As a corporate executive, your days are highly scheduled and regulated. The time you can devote to working with charities may be limited, but you can nevertheless make a substantial impact without the time commitment.
Many C-level executives find themselves with questions about the most effective incentive stock options tax strategies. However, there’s a clear gap in the wealth management marketplace: very few financial advisors or tax professionals actually discuss how to strategically optimize equity compensation planning with their clients.