Concentrated Company Stock

Latest Summer 2017 Quarterly Newsletter In this issue, David Greene, CFP, reflects on current markets and how to prioritize what will actually impact their growth and stability. Kevin Donovan, CFA, discusses P/E valuations and how they compare in today's market environment. With many children heading back to school, it is important to be aware of possible pitfalls to avoid while utilizing financial aid so read How Assets Impact College Aid Eligibility on FAFSA and CSS Profile. Finally, see what the CJM Team and their families were up to this summer! October 2017 Audio Update Dave, Kevin, Tracey and Tim share their thoughts on the markets so far this year, expectations for the remainder of the year, an update on Congressional bills making their way through Congress and finally some thoughts on protecting your credit given the recent Equifax security breach. Newsletter & Podcast Archive

The Situation

Tom had worked for a Fortune 50 company for over 30 years. When the company decided to consolidate operations on the west coast, Tom and his wife Lynn were given the option of relocating their family to the west coast or taking an early retirement. Not sure of what made the most sense given their current ages and lack of desire to relocate their family, Tom and Lynn came to see CJM and to weigh their options.

The Solution

Helping Tom and Lynn understand their options was critical because they were on a tight deadline set by the company. Tom and Lynn had moved their family numerous times over the last 30 years and one “last move” did not really appeal to the both of them. CJM compiled the necessary information and set about doing the analysis in a timely manner.

Tom’s employer had an ESOP plan that Tom had contributed to for many years. Over the last few decades the company had done extremely well and the stock price had increased dramatically. Compounding the company stock issue, inside his company 401k plan Tom had thousands of shares of company stock that had accumulated through company matching contributions.

CJM helped develop an income plan that showed both Tom and Lynn that retirement today was a very real possibility without sacrificing their lifestyle. In addition, during the financial planning analysis CJM determined that Tom could better manage some of the company stock inside his 401k plan by taking it as a distribution upon retiring from the company.

Value To The Client

Tom and Lynn did not want to relocate away from their family and friends yet at the same time they wanted to make sure that they had enough money to support their lifestyle if Tom left his current company. CJM’s due diligence and financial planning analysis helped them make the decision not to relocate to the west coast. In addition, CJM’s experience with company stock and NUA transactions allowed Tom and Lynn the opportunity to transfer company stock out of his IRA account with reduced income tax consequences.

CJM’s tax and retirement planning expertise helped Tom and Lynn realize their life long dreams of financial independence through active planning and a disciplined approach to decision making.

More Solutions

At CJM we understand that no two clients are alike and real world problems require practical and timely solutions. The CJM team brings together the best and the brightest in the areas of investment, tax, insurance, financial planning & wealth management to resolve each client’s particular issue(s).