Guiding you through unique financial challenges
Dedicated financial partners
Coordination is key when navigating the unique financial challenges you face as a corporate executive. However, dedicating the time to research and make informed financial decisions can be both time-consuming and overwhelming. You need a partner and advisor who will walk alongside you as you navigate the financial complexities involved with your executive compensation and incentive plans.
We will serve as this financial partner, helping you create a personal financial plan that will form the foundation for all future financial decisions. Your investment allocations and long-term tax strategy will be closely integrated with your financial plan. Our goal is to help you successfully achieve all of your financial goals.
Client Success Story
Doug was at the top of his professional game. His leadership skills, experience, instincts and work ethic landed him on the executive team of a large company. His compensation structure included opportunities to acquire company stock through an employee stock purchase plan, participate in a 401(k) plan, receive stock option grants and participate in a deferred compensation plan. As he began to prepare for his retirement, Doug reached out to Aldrich Wealth to help him develop a plan for making tax-efficient use of resources while planning for his and his spouse’s financial future. He was also interested in mitigating the risk of the heavy concentration of company stock in their investment portfolio.
Aldrich Wealth evaluated all of the couple’s income streams and identified options for deferring income to periods in which the family’s tax bracket would likely be lower. The team determined the minimum taxable compensation that Doug needed to take from the company’s employee stock purchase plan and matching contributions to a 401(k) plan.
Doug needed a strategy to exercise stock options as tax efficiently as possible. In years when he decided to exercise options, the team encouraged Doug to utilize the proceeds to fund household expenses while taking full advantage of opportunities to defer a large portion of his salary and bonuses. State tax credits were also evaluated as a strategy to increase the couple’s deductions and reduce their tax liability.
Given their portfolio’s concentration in company stock and Doug’s pending retirement, the couple wanted to invest their outside holdings in assets that would safeguard the value of the principal. Aldrich Wealth pursued an investment strategy that would allow them to achieve their goals in a tax-efficient manner.
Doug considered the prospect of relocating to a different state during the remaining years of his employment. Aldrich Wealth assessed the tax implications of the move and provided tax projections under these scenarios. Once the couple made the decision to change their primary residence, Aldrich Wealth provided assistance with the requisite tax filings.
A cornerstone of the working relationship was a financial plan that accounted for the couple’s current and future needs. This plan was the basis on which they made major decisions – including the timing of Doug’s retirement, the construction of a new home and provisions for charitable giving. Periodic updates reflected changes in their assumptions, life circumstances and market conditions. Since Doug’s retirement, he and his wife meet with the Aldrich Wealth team quarterly to review their financial plan, investments and tax strategies. Doug has the peace of mind in knowing that the team will listen attentively and compassionately to their concerns, offer expert advice and take actions that serve their best interests.
Your financial plan will address several specific areas of concern for many corporate executives.
If you are in need of a disciplined and tax-efficient strategy to exercise company stock options, we will provide you with a customized solution to diversify your assets while taking into consideration your financial goals and tax liability. A consistent and streamlined strategy will ease emotions and provide peace of mind.
Employee Stock Purchase Plans (ESPP) provide a tax-efficient way for you to purchase company stock at a discount. We will help you balance the benefits of ESPPs with the risks of additional stock concentration.
As a high-level employee in the company, you may have been awarded restricted stock. While such a reward offers opportunities, it can also have certain limitations. We take an active role to help you manage the monetization of restricted stock in the context of your bigger financial picture.
This additional savings vehicle can be the lever you control to mitigate taxes. We will evaluate your situation each year and make proactive recommendations on the optimal amount of income you need to defer to minimize current taxation and achieve your retirement goals.
Substantial ownership in company stock poses considerable financial risk and presents the need to diversify. At the same time, you may have a requirement to hold a specific amount of company stock. We will ensure that you satisfy these requirements while evaluating the risk associated with your concentration. Any reduction in company stock would be done tax-efficiently over the long term.
Insights for Corporate Executives
Meet Our Professionals
Abbey Rollins, CFP®
Abbey joined Aldrich Wealth in 2007, after spending five years at a traditional brokerage firm. Abbey’s goal was to focus on personal financial planning, which was not a service valued in the brokerage industry. Shortly after joining the firm, Abbey obtained her CERTIFIED FINANCIAL PLANNER™ practitioner designation (CFP®) and greatly expanded the financial planning services…
- High net worth families, business owners and medical practitioners
- Series 66 security exam
- Certified Financial Planner™