At Integrated Capital Management, we have specialized experience working with corporate executives on their personal financial planning. We know that their lives are overwhelmingly busy with work and family.
Retaining an advisor that enables you to spend more time in your position and with your family can be one of the best ways to give you peace of mind. Most of our corporate executive clients have an understanding of personal financial concepts, but do not have the time to dedicate to the task.
As our clients’ trusted advisor, our goal is to maximize their employer’s benefits such as stock options, restricted stock, 401(k) plans, and overall corporate benefits. Our comprehensive process utilizes these benefits so that they are part of a coordinated plan to meet our clients’ goals.
Regardless of the reason, some of our clients decide to begin retirement early. At Integrated Capital Management we develop strategies to help our clients transition smoothly to retirement.
Situation
Sally, a 58 year-old corporate executive in the auto industry was on track to retire at age 65. After her divorce she began working with Integrated Capital Management. Two months ago, her position was eliminated after her company implemented cost cutting measures. Her employer gave her a severance package that will provide continued income for six months. Having explored other job opportunities, but unable to find a comparable position, she called her Integrated Capital Management advisor to ask for help in developing a plan for early retirement.
Solution
Her advisor modified her comprehensive Financial Plan by moving up her retirement to age 58. They worked on new retirement goals during an income and savings discussion. With these goals in mind, her advisor was able to suggest ways to streamline her living expenses. By choosing a smaller retirement home out of state near her daughter’s family, she was able to reduce expenses to align with early retirement.
For illustration purposes only. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy recommended will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. ICM and its affiliates do not provide tax, legal or accounting advice. Any information presented here is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Corporate pension plans are quickly becoming obsolete. For our clients that are eligible, we will develop a strategy that combines the optimal pension offering with your other retirement resources.
Situation
William is a 48 year-old corporate executive who has been managing his own investment portfolio for several years. He recently became eligible for his company’s executive pension plan and came to Integrated Capital Management to understand how to make the most of that opportunity. His company’s plan offers three options: Lump Sum Payout, Joint & Survivor Annuity, and Single Life Annuity.
Solution
William showed his Integrated Capital Management advisor the retirement income projections he built for the three pension options using the calculator on his company’s website. The advisor explained how the pension plans offered can coordinate with a detailed financial plan, assuming a retirement age of 62. William’s optimal choice was between a joint pension, that would continue pension payments to his wife upon his death, or a single life pension that would terminate payments at death. By choosing the single life pension that had a higher monthly payout, William took the monthly payout difference between the two plans and funded a $3,000,000 permanent life insurance policy. This option improves the benefit to his family upon his death. He now has confidence that his family is protected into the future.
For illustration purposes only. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy recommended will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. ICM and its affiliates do not provide tax, legal or accounting advice. Any information presented here is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
The advisors at Integrated Capital Management are experienced in managing all types of investment vehicles. Stock compensation is one area of specialty that we offer our clients. We educate our clients on all aspects of investing in Restricted Stock Units and Stock Options.
Situation
Samantha is a corporate executive with a generous compensation plan from her employer. She came to Integrated Capital Management with questions about the advantages and disadvantages of the stock options offered to her. She was concerned about how those investments would affect her tax liability in future years.
Solution
After analyzing Samantha’s financial situation, her advisor recommended a strategy that takes advantage of the unique characteristics of Restricted Stock Units. The advisor created a tax efficient diversification schedule that cleared up Samantha’s confusion on when the RSUs will vest. The schedule allows her to meet the financial goals she set such as the purchase of a new house and saving for her son’s college expenses. The schedule stops Samantha from cashing out too much in any given year or from having too much invested in her employer’s stock.
For illustration purposes only. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy recommended will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. ICM and its affiliates do not provide tax, legal or accounting advice. Any information presented here is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
At Integrated Capital Management we work to ensure a solid financial future for our clients. Our involvement goes beyond investing your money – we team up with you so that your portfolio of assets, from stocks, bonds, mutual funds, 529 plans, life and disability insurance, all work in your favor year after year.
Situation
John, a 45 year-old engineer, was recently hired as Vice President of a mid-sized manufacturing company. His new company offered him a pension and yearly bonuses, including stock-based compensation. Over the years, he and his family have purchased a second home and several investment properties. He recently came to Integrated Capital Management for guidance on protecting his assets while maximizing return on his investments.
Solution
John’s advisor at Integrated Capital Management created a comprehensive Financial Plan for him. This plan takes into consideration inputs such as the family’s life and retirement goals, current and future cash flow, life & disability insurance, estate planning, and college savings for his children. His advisor offered him a one-stop shop for all his financial needs – in short, a Personal CFO. John can now focus on his new position and not worry about how to manage his many investments. His advisor will be guiding him on his financial journey from his peak earning years to retirement.
For illustration purposes only. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy recommended will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. No portion of the content should be construed as an offer or solicitation for the purchase or sale of any security. ICM and its affiliates do not provide tax, legal or accounting advice. Any information presented here is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
For more information, contact us today to schedule some one-on-one time with one of our advisors.