You’ve Got Questions
As you contemplate leaving P&G, there are many variables to consider:
Should I diversify my P&G holdings?
How should I treat my P&G separation package?
What happens to my preferred shares in the PST?
How does Net Unrealized Appreciation (NUA) work?
Should I take a lump sum distribution?
How can I be sure I’m being tax-efficient with my decisions?
Making the adjustment from accumulation to distribution strategies requires a certain level of risk management and expertise.
The decisions you make during this transition significantly impact your retirement and can minimize the risk that you’ll outlive your savings, in addition to other risks associated with withdrawal rates, inflation, and interest rates.
We’ve Got Answers
We’ve got answers because we’ve been where you are.
The P&G retirement planning landscape is unique. We get it. More than 50% of our clients are P&G executives, retirees, or their families. And one of our registered investment advisors is a P&G alum himself.
We pride ourselves on being great listeners and we know what kind of questions are on your mind:
What are other P&G people choosing to do?
How will I know this is the best approach for me and my family in the long-run?
You’ve worked a long time to accumulate the funds in your retirement plan. We don’t take that lightly.
Creating That Ah-Ha Moment in Your Retirement Planning Process
When we walk through this transition with our P&G clients, many of them realize a sort of “a-ha” moment. Answers begin to come into focus about:
P&G 401k & PST. P&G’s plan has limited investment options. We’ll work to understand your needs and what you plan to do next — whether you’re headed toward a second career, consulting, volunteer work, or anything else. Only then will we develop investment strategies.
Preferred Stock. Together we’ll determine the best treatment for your preferred shares. Typically, tax treatment favors moving the shares out of your retirement account and into a taxable account.
P&G Stock Options. Considering your income needs, P&G stock price, and your tax situation, we’ll determine the most favorable timing for exercising your options.
P&G RSUs and other P&G shares. By uncovering options with low volatility we can minimize risk when you’re ready to diversify your P&G stock.
You’ll work with our enrolled IRS agent to clearly explain the weighty tax implications and with fiduciaries who are legally bound to put your interests ahead of their own.
Having someone on the other side of the desk who’s been where you’ve been and made the decisions you’re making means something. Plus, we operate with that P&G mindset – we start with a strategy, break it down into a plan, and then talk tactics.
Strategy. Every plan is unique. We’ll consider your age, years until retirement, other retirement holdings, your life goals, your family dynamics, and much more.
Plan. With those variables, we’ll then consider some fundamentals, including:
Timing considerations, which will include a comparison of various tax rates in light of minimum distribution rules that begin at age 72
How much P&G stock you’re comfortable holding
Your comfort level with investment complexity
Tactics. Together, we’ll design a unique set of steps to pave the road forward for your retirement. The original strategy will drive every step we take.
What’s Next?
The best time to start planning for retirement is when you start working. The second best time is right now. Get started by mapping out a timeline, so you can visualize key milestones along the way:
Age 50
you become eligible to diversify holdings / reduce your percentage of P&G stock
Age 59½
you qualify for a lump-sum distribution and are eligible for penalty-free plan withdrawals
At least 1 year before leaving P&G
time to identify an investment advisor
Meet Jared Kline, CFP®, Enrolled IRS Agent
Jared worked for P&G for 25 years and left 3 years ago to join Kellett Schaffner. When Jared left, he wrestled with all the questions about leaving - how to utilize the Net Unrealized Appreciation opportunity to maximize retirement assets while minimizing taxes; how to diversify the nest egg while still holding some P&G stock; and how to manage the vesting and exercise of RSU’s and stock options to balance the risk and reward. Jared joined a small business and also navigated decisions about how to invest some of his nest egg in his next venture. Today Jared works with numerous current and former P&G employees to help them answer the questions about retirement. He helps them sleep better and with less anxiety knowing they have someone by their side who’s been through it himself.
Let’s Talk
Set up a free consultation today.
The meeting will be simple. Our licensed financial planners and tax professionals will walk you through a brief presentation that’s been built from scratch just for you. These visuals will be tailored specifically to your current financial snapshot and your goals. This way, we can talk about your unique situation and provide equally-unique strategies for you to consider.
We want you to take your time with this decision. That’s why our motto is “sleep on it.” In fact, at the end of the meeting we’ll actually tell you to sleep on it. There’s never any pressure or obligation. This is an important decision, so we want you to be totally comfortable and confident before you choose to work with us.