TITLE

Funding a Private Retirement Plan Using Employer Stock and Stock Options

AUTHOR(S)
Weiss, Gerald R.
PUB. DATE
March 2003
SOURCE
Journal of Financial Planning;Mar2003, Vol. 16 Issue 3, p62
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article presents an integrated planning approach for the corporate client whose primary retirement portfolio investments are employer stock and stock options. Assuming the employer offers no employer-funded defined benefit pension plan (that is, offers stock options and 401(k) plans only), a target retirement benefit model is developed based on several public-sector defined-benefit plans. This model is designed to provide the employee with retirement annuity income as if the employee had worked for a state entity such as a university system. After determining the personal retirement plan funding requirements, the planner is immediately faced with several implementation issues, the most complex being which of the client's option grants to liquidate first; the applicable tax consequences and; any re-investment alternatives. Once the client liquidates some stock option grants, several savings vehicle choices are available to hold the private retirement funds.
ACCESSION #
9309798

 

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