I’ve had the opportunity to work with a number of executives over the years and have found some commonly missed financial opportunities:
Not Intentionally Saving a Portion of Their Bonus
For many executives their bonuses make up a significant percentage of their overall compensation but when it comes, they miss the chance to pay themselves first. The funds end up being used for home projects and travel and very little, if any, gets saved. When a bonus comes, we encourage clients to save a healthy amount first and then spend. Many executives can designate some or all their bonuses to Deferred Compensation during their benefits enrollment. This can be a great tool and leads me to my next missed financial opportunity.
Not Utilizing or Misusing a Deferred Compensation Plan
Many executives have access to deferred compensation plans, which can be great tools for saving additional funds for retirement or other goals. That being said, understanding those plans takes time, and each plan is a bit unique. For those reasons, executives will sometimes either not use the plans at all or use it in a way that can be detrimental to their tax situations in the future.
Not Having a Plan for Stock Options and Restricted Stock
Executives often receive measurable compensation through equity compensation plans, like Stock Options and Restricted Stock, but don’t have plans for ultimately selling their shares once vested. Leaving shares to accumulate can sometimes cause unintended consequences, like a higher risk portfolio or taxes.
Partnering with an advisor who is experienced in working with these benefit programs and tying them to your overall financial plan can create tremendous value for you and your family. Foster Group works with executives to create plans for all three of these opportunities so that when the time comes, they’re prepared to act. They will know in advance when and why to take action. At Foster Group, truly caring for our clients means taking the time to learn what’s in their hearts and helping them pursue their goals. If you think you might be missing an opportunity in one of these areas, give us a call to schedule a free consultation.
Three Commonly Missed Opportunities by Executives
I’ve had the opportunity to work with a number of executives over the years and have found some commonly missed financial opportunities.
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