A Senior Executive with a fortune 500 company is in the process of determining a specific date to retire. The client:
- Has been a client of Vector Wealth Management for several years.
- Is working asa lead strategist for a division of their current employer.
- Participates in several benefit plans:
– Defined benefit pension
– Incentive Stock Option Plan
– Restricted Stock Option Plan
– 401(k) Plan
– Stock purchase plan
- Built a reasonable balance between pre-tax (retirement) and after tax assets (65%/35%)
- Strength of their financial plan.
- Whether or not the client still enjoys working at the company.
- Client’s financial plan proved strong and they could retire, despite the 2008 market correction.
- The Great Recession did not impact their income for the next few years because specific investment assets were positioned in Assured Income.
- For each year the client continued working they would:
– Increase their savings
– Receive more company stock
– Increase his pension benefit
– Remove the need for income from their investments
- How planning ahead helped protect the client’s asset s needed for income by having a disciplined process established around securing these needs in advance.
- The “ability” for the client to retire as planned had a liberating impact on his decision to continue working.
- The delay, and subsequent recovery of the markets, had a measurable impact on the retirement lifestyle options available.
- No client has more successfully ticked items off their bucket list.