Do you have an exit strategy for your business or career? Whether you are a corporate executive or a business owner, there will come a time when you want, or need, to transition to the next phase of life. Done in advance, this can be an optimistic process, it should define how YOU want to exit. As the plan develops, there will be reality checks and alternative paths to consider, but at this point it should be a framework of how you want the future to look.
Your employer’s traditional 401(k) plan and deferred comp plan may look similar. They may be visible from the same website and they may appear to have the same investments, but they are different in one very critical way. The deferred comp plan is not protected if your employer goes bankrupt, while the 401(k) plan is protected. With the recent downturn in the markets and volatility likely to continue, it’s important that you understand the differences between the two types of employer plans and review if any adjustments need to be made to your participation or allocation strategy.
ESPP – While the acronym and the spelled-out version - employee stock purchase plan – don’t sound particularly exciting, the financial rewards can be. That’s because, under most circumstances, people whose employers (publicly-traded companies) offer an ESPP can profit by using this benefit strategically
