Concentrated Company Stock

Latest Spring 2017 Quarterly Newsletter In this issue, Tracey Baker, CFP, reflects on current markets as we head into the summer months. Kevin Donovan, CFA, compares performance of "Actively" vs. "Passively" managed funds. Parker Trasborg, CFP, discusses the implications of several common estate planning pitfalls. Read about the tax related benefits that can arise from making Qualified Charitable Distributions. Jessica Ness, CFP, talks about our Day of Service when we partnered with one of our favorite local service organizations for the second year in a row. See how our clients have two different programs to track their CJM portfolios. January 2017 Audio Update Join Tracey, Brian, Kevin and Tim as they discuss CJMs expectations for the markets in 2017, a discussion on small cap equities as well as Tims thoughts on income distributions in retirement. 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.

Toms 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. CJMs due diligence and financial planning analysis helped them make the decision not to relocate to the west coast. In addition, CJMs 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.

CJMs 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 clients particular issue(s).