Aligning wealth with purpose: How to build a financial plan as ambitious as you when your compensation is complex 

Executives and professionals often find themselves at the crossroads of financial prosperity and personal fulfillment. 

As a business leader, you’re accustomed to making strategic decisions that steer your company towards success. Your personal financial plan demands the same level of attention and strategic foresight.  

You’re not just managing wealth; you’re curating a legacy. 

The increasing complexity of compensation packages for today’s business professionals and executives, however, makes aligning your wealth with your personal goals an increasingly nuanced endeavor. 

How does equity in your company translate into retirement, education for your children, or impactful philanthropy? How do stock options empower your vision for the future—for yourself, your family, and the causes you care about? 

In this blog post, we will explore what you can do to navigate the intricacies of executive compensation. Consider these 10 steps to integrate your wealth into a financial plan that supports and resonates with your personal ambitions: 

1. Understand Your Compensation: Grasp the full scope of your compensation package, including base salary, bonuses, equity awards, and other benefits. This understanding is crucial for effective financial planning. 

2. Set Clear Goals: Define your personal and family objectives, such as retirement age, education funding for children, and philanthropic aspirations. These goals will guide your financial decisions. 

3. Evaluate and Diversify Investments: Assess your current investments and consider diversification to mitigate risks associated with having a sizable portion of wealth tied to your company’s stock. 

4. Plan for Retirement: Develop a retirement strategy that considers your compensation structure, ensuring you have a plan for income streams post-retirement. 

5. Education Funding: Explore education savings accounts, 529 plans, or trusts to secure your children’s educational future. 

6. Philanthropic Endeavors: If philanthropy is a priority, consider establishing a donor-advised fund or a private foundation to manage your charitable giving. 

7. Tax Planning: Work with a financial advisor to understand the tax implications of your specific types of compensation and investment decisions, aiming for tax efficiency. 

8. Estate Planning: Ensure your estate plan reflects your goals and that your compensation and assets are structured to benefit your heirs according to your wishes. 

9. Seek Professional Advice: Consult with financial advisors who specialize in executive compensation and wealth management to develop a tailored plan that aligns with your goals. 

10. Regular Review and Adjustments: Periodically review your financial plan to adjust for changes in your compensation, tax laws, and personal circumstances. 

This is not just about securing wealth. Every financial decision you make can be a step towards a future you’ve envisioned and crafted with purpose. It’s a journey that requires careful consideration, expert guidance, and a sharp vision of your destination. 

© 2024 Advisory services offered by Moneta Group Investment Advisors, LLC, (“MGIA”) an investment adviser registered with the Securities and Exchange Commission (“SEC”). MGIA is a wholly owned subsidiary of Moneta Group, LLC. Registration as an investment adviser does not imply a certain level of skill or training. The information contained herein is for informational purposes only, is not intended to be comprehensive or exclusive, and is based on materials deemed reliable, but the accuracy of which has not been verified. 

Trademarks and copyrights of materials referenced herein are the property of their respective owners. Index returns reflect total return, assuming reinvestment of dividends and interest. The returns do not reflect the effect of taxes and/or fees that an investor would incur. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. An index is an unmanaged portfolio of specified securities and does not reflect any initial or ongoing expenses nor can it be invested in directly. Past performance is not indicative of future returns. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise. 

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