Concentrated Company Stock

Latest Winter 2018 Quarterly Newsletter This issues includes reflections from Brian Jones, CFP, on recent market volatility as he draws parallels to the most recent Super Bowl. Kevin Donovan, CFA, discusses how market losses can be tough but in general the market produces positive returns. Mark your calendars for our annual Shredding Event on May 18th and read about which documents to keep versus shred. Lastly, we share the recent Washingtonian Magazine article that quoted Jessica Ness, CFP, and her advice for handling children's allowance. January 2018 Audio Update In our first podcast of 2018, join us as David Greene, Kevin Donovan, Jessica Ness and Brian Jones share their thoughts on what worked in 2017, what to expect in the markets in 2018 as well as an update on the new tax bill just passed by Congress. 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).