Why High Earning Executives Need Aligned Financial And Estate Plans

Many highly compensated executives have worked years to earn the reputation and the high paycheck that comes along with it. This could cause problems however, in your own retirement and in how you choose to pass on assets to your heirs. A couple of financial changes should be considered as you enter retirement.

There are plenty of financial planning options to do before you decide to exit your role, but think about the wealth that may be tied to your employer because this should be incorporated as part of your individual and estate plan. Many successful executives receive restricted stock grants and stock options, and also participate in retirement plans, such as deferred compensation plans and 401(k)s. These can all contribute toward a concentration in company stock.

You may have up to 35% of your assets tied up in company stock, with the remainder in insurance, real estate, non-qualified deferred compensation and 401(k) retirement plans. You might want to meet with your financial professional and your estate planning lawyer to talk about how diversifying your portfolio could have short term and long term implications for your future. It is now time to adjust and to do everything possible to protect yourself while thinking about handling increasing longevity and rising long term care costs while also planning ahead for your loved ones to potentially inherit some of these assets.

Need help with your personalized plan? Our Pasadena estate planning attorneys can assist.

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