Financial Planning for Executives

Working with executives presents unique financial planning challenges. Traditional retirement plans often fall short of providing the financial independence these individuals desire. Executives commonly have access to deferred compensation plans and restricted stock, but understanding the nuances and risks associated with these options is crucial.

Balancing financial independence for retirement, funding children’s education, and enjoying a comfortable lifestyle can be complex, especially when a significant portion of income comes from bonuses and vested stock. Advisors specializing in executive financial planning can help navigate these complexities and ensure that financial decisions align with both immediate needs and long-term goals.

Video Transcript

In working with executives over the years, we found that there are very unique circumstances that should be addressed when working with executives. The first aspect of the financial planning is usually we see that based upon the percentage of income, what can be saved in a traditional retirement plan is not going to be nearly enough for what would create financial independence for that person’s family.

Usually for executives, there’s excess plans such as deferred compensation plans, there’s participation in restricted stock without traditional pensions being available. For most executives, maximizing these different avenues, knowing the pros and cons of the deferred compensation plans and then also protecting your balance sheet from too high of a concentrated stock position are keys to success.

While also balancing the politics of having the conviction in your company by holding that stock versus making sure that your family’s best interests are taken to heart. Also with the factor that this company is the source of your income and your lifestyle.

How do we balance a financial independence plan for retirement, funding your kids college, and then also making sure that you’re living a present, abundant life today with maybe the majority of your compensation not coming from a base salary, but coming from bonuses, coming from restricted stock that have vesting schedules involved.

We really look forward to helping you navigate these complex financial decisions and making sure that your money is helping you achieve a life by design.

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