April NEST Egg: All About Company Benefits

Employee benefits - we all know that we want them, but do we really understand how much they can do for us?

April’s NEST Egg breaks down the basics of the most common employee benefits that companies offer so that you can take full advantage of your hard-earned benefits.

Retirement Planning

The most common type of retirement account that companies offer is the 401(k). This gives employers and employees flexibility and incentive to save and invest for retirement. In the upcoming NEST Egg webinar, we will review what this plan offers and how to ensure that you are taking full advantage of this benefit.

Protecting Your Health and Life

When it comes to health insurance, companies can often take advantage of group rates to provide full or partial coverage for employees. With medical costs as one of the fastest growing expenses for Americans, company provided health insurance is an impactful portion of the employment package. Additional coverage for family members may also be obtained depending on the employer’s plan.In addition to health insurance, life insurance may also be offered as part of the benefits package. Policies often cover the annual salary or double, but can also be much higher. However, this policy is tied to the term of employment, meaning that coverage is lost when employment ends. In case of job loss, it may be prudent to consider coverage outside of the employer offerings.

Company Stock Options

One of the most common benefits we hear questions about is stock options and plans such as Incentive Stock Options (ISO), Restricted Stock Units (RSU) and Employee Stock Purchase Plans (ESPP). Although these benefits are a great tool for building wealth and saving for retirement, there awaits the notorious bill charged by Uncle Sam. Also, what many people may not be aware of is the diversification risk faced when holding a large concentration of company stock. What happens if the stock price falls and you’re holding the bag?Highlights of April’s NEST Egg webinar include:

• How do I know if my family and I are protected?
• What happens to my 401(k) if I leave my job?
• Can business owners open their own 401(k)?
• When should I sell my stock options?
• Is selling my stock options worth paying the taxes now?

Check back each month for our recap of The NEST Egg, where we go over financial planning concepts and basics. Sign up for our email newsletter so that you can tune into the live webinar and ask Dan and Gloria your burning finance questions!Disclaimer: We are legally obligated to remind you that content provided in webinars and recordings is for educational purposes only and is not personalized financial planning or investment advice. For guidance about your unique goals, feel free to schedule an appointment with us by email: info@nestfinancial.netDon’t forget to subscribe to our YouTube channel for more financial planning content!