Article Summary & Key Points Employees of what was formerly Mentor Graphics, now Siemens, may find that they are eligible for Siemens’ Deferred Compensation Plan (DCP) and wonder if they should defer their salary and/or bonus into the plan. In this article, we lay out 4-steps to consider as you evaluate this decision: Why Defer? The Benefits of Deferred Compensation... Read More
Ideally, with each paycheck or bonus paid we would have all the cash flow we need to support regular cash-flow needs, achieve our larger financial objectives and optimize deferrals to tax-advantaged accounts and other tax savings opportunities. However, money is a resource, and like most resources it’s limited. We are forced to prioritize where we spend, the objectives we further,... Read More
As with most financial decisions, when it comes to refinancing a mortgage there are near-term costs and benefits and long-term costs and benefits. In Part 1, I reviewed a four-step framework as a starting point to determine if refinancing a mortgage is beneficial. The focus of that framework is to assess first, whether a refinance made sense in light of... Read More
Because of the wide range of fees, and hassle involved with a re-finance, analyzing when a refinance would make sense can seem overwhelming, but answering these four questions to start really helps: What is the long-term objective for your house? What will you gain by refinancing? What does it cost to refinance? When is the breakeven? Once you know the... Read More
“When is the best time to buy a house?” “When is the best time to have kids?” “When is the best time to pivot your career?” “When is the best time to get back into the market?” I love a good timing question and my favorites are questions like these. Questions that involve decisions, the quality of which will be... Read More
Previously, we’ve posted about the importance of giving health care costs and the plan decisions on the open market appropriate context when considering your ability to retire. Today, we want to discuss what may previously have been deemed a “too expensive” option: COBRA - because at least at Intel, it may no longer be the most expensive. Selecting an option for health insurance in retirement or during a gap in employment is always a concern for our... Read More
Checklists are a great tool for year-end tax planning so I’m writing to share two that we regularly use. Whether you’re a corporate employee, a business owner, or you are retired, it is likely that there are tax optimization opportunities to consider implementing before the end of the year. It is also likely that the optimization that is best for... Read More
Intel has from time to time offered separation packages to eligible employees as an incentive to retire, or at least to transition out of Intel. The most recent widely offered package was the Early Retirement Program (ERP) which Intel offered to eligible employees in 2016. While it’s unusual for a package to be offered to such a large number of... Read More
The common perception is that as you age, or more specifically as you approach retirement, you should reduce the risk in your investment portfolio. In most cases, this means reducing exposure to the stock market and increasing exposure to fixed income (i.e., bonds). The goal is to dampen the ups and downs with the understanding that the potential upside is... Read More
A couple weeks ago, a client—having just returned from sabbatical—told me she has “one more sabbatical before retirement.” Her plan, she said, is to have her “last day of Intel employment be the last day of [her] next sabbatical. “But then,” she continued, “I will probably want to work until I receive my April vesting…and then the next quarterly bonus…”... Read More
