Preparing for and Transitioning to Retirement from ExxonMobil
It’s tough to keep up with your obligations and responsibilities as an ExxonMobil employee and make informed decisions about benefit plan choices. That challenge intensifies when you approach retirement, with significant and generally irrevocable decisions. We can help you make sure you’re maximizing your benefits while you’re working, and help you through the retirement process and on to a confident retirement.
For more than 25 years, ExxonMobil employees and retirees have relied on Investec to assist them in wealth management and retirement. We have an ExxonMobil retiree on staff as one of our Senior Wealth Advisors. Doug Garrison, CFP®, MBA, spent over thirty years in ExxonMobil HR. Our familiarity with ExxonMobil benefits means we understand the details and can assist you in avoiding big mistakes and maximizing the value of your company benefits.
ExxonMobil Savings Plan (EMSP)
For active employees, we can help ensure that your investments are appropriately diversified, considering your risk tolerance, time horizon, and other assets. We can assist in rebalancing your account as appropriate and advise on contribution levels and account destinations.
As you approach retirement, we can help assess whether using low-cost ExxonMobil stock and the tax-benefits of net unrealized appreciation (NUA) makes sense for your plan. Deciding how best to use your after-tax contributions as you take distribution can also be challenging, given the choices you have. And if the bulk of your account is before-tax contributions and earnings, we can establish a rollover IRA for continued tax-deferred earnings.
ExxonMobil Pension Plan (EMPP)
You have choices to make when it’s time to retire. For many, the biggest decision is whether and when to take all or a portion of your EMPP benefit as an annuity or a lump sum. It’s more than just a question of the lump sum interest rate. The year in which you retire can impact your taxable income if part of your benefit is from the Supplemental Pension Plan (SPP) or the Additional Payments Plan (APP). You should also consider the irrevocable nature of choosing an annuity. We work through the alternatives with our ExxonMobil clients, and find a solution that’s most suitable for their circumstances. It’s a big decision—it’s worth a good conversation.
If you have been granted Restricted Stock/Units or Earnings Bonus Units (EBUs), we’ll help you take that future income into consideration as you budget for your early years of retirement. Do you need or want to continue paying for Group Universal Life (GUL) insurance once you’re retired? We’ll help with that decision.
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EBUs are “Earning Bonus Units,” which ExxonMobil employees may be awarded each year as part of their incentive bonus compensation. For those who receive both cash bonuses and EBUs, typically the EBUs are approximately equal to the cash bonus, i.e., half of the annual bonus component of incentive awards is paid through EBUs.
Mae West, an iconic 20th century American actress, singer, comedian and sex symbol, reportedly once said “Too much of a good thing is wonderful.” We’re pretty sure Mae wasn’t talking about net unrealized appreciation (NUA). But Mae’s observation raises a valid question. “Can there be too much of this good thing, this NUA?”
Disclaimer: Investec Wealth Strategies is not endorsed by or affiliated with Exxon Mobil Corporation.