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Taking the Gamble out of Retirement; Part 2 – Navigating the P&G Retirement Process

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Before digging into navigating the P&G retirement process, consider reading Part 1 of this article – Understanding P&G’s Retirement Options.

The P&G financial universe certainly has its own idiosyncrasies and potential pitfalls. More than a quarter of our practice is made up of P&G executives and retirees, and we hear a similar refrain when it comes to retirement planning: What are my P&G friends/colleagues doing? Who are they working with? How do they know they’re taking the best approach? There’s no one right answer. Your best case scenario depends on everything from your band level and tenure at P&G to your life goals, family dynamics, charitable giving philosophy and more. What’s best for you might not be what’s best for the person sitting next to you. Despite all the variables, here are some fundamental questions to consider: 

  • What’s your current marginal tax rate now, vs. the pre-70 ½ retirement rate and post-70 ½ rate?
  • How much P&G stock are you comfortable holding?
  • How much investment complexity or simplicity do you want?
  • What proportion of your overall retirement savings is in the PST?

 Your answers – intersected with our experience within the P&G environment – gives us a collaborative blueprint. Understanding it well and executing a well thought out, strategic plan can deliver the gratifying retirement you’ve been investing in for so long.

Make sure you’re engaging with an advisor at least a year before your planned exit from P&G. Be on the lookout for an advisor with CPAs to parse through the weighty tax implications and fiduciaries that are legally bound to put your interests ahead of their own. Chart a timeline so you fully understand the key milestones ahead, such as age 50 (when you become eligible for Retirement Plus and can diversify holdings) and age 59½ (when you requalify for a lump-sum distribution and are eligible for penalty-free plan withdrawals).

We’re ready to help with a no-cost meeting to understand your situation, start building a plan and give you a handful of action steps whether you decide to continue working with us or not.

Now that’s an option worth considering.

by Amy L. Thomas, CPA, Financial Planner and David J. Nienaber, MBA, CPA, CFP® Financial Planner, Shareholder

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