01/13/2024
“I have everything covered through work”
A statement I hear time and time again. Yes, it is fantastic that employers incentive their employees to stay with them by offering benefits through their company. But, what I have also come to know is that the employer does not understand your full financial picture. Typically when I review company benefits for clients, they cover the bare minimum. (Basic life, basic short/long-term disability, health insurance, retirement savings, company stock, etc.)
Great questions to ask yourself!
-Do I understand how my long-term disability is only partially covered through my employer, if they even offer it at all?
-Do I understand my needs based benefit amount for life insurance needed to make sure debt/family is taken care of? Most basic employer plans do not cover the full need.
-Have I walked through a retirement analysis, monthly income needed, a strategic way to get the money out, tax-efficiency, longevity, legacy?
-Do I have the option to contribute to an HSA, what are the tax benefits of doing so, are you investing the money, what can you use it for?
-Strategic alignment for your investments, are they allocated to your time-horizon/goals to use the money, tax-efficiency, right investment vehicle, diversified?
-Are you offered ESPP, ESOP, restricted stock, how does vesting work and what does taxation look like?
There can be a lot of moving parts! This doesn’t include many useful strategies to implement outside of your employer.
