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    {
      "speaker": "Josh",
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      "body": "Welcome to the Freedom for Retirement podcast. If you're a high earning professional, business owner, or someone approaching retirement and wondering whether you are truly on track, you are in the right place. This podcast is all about helping you make smart, confident financial decisions without the fear, confusion, or sales pressure that so often comes with money advice. Each episode is designed to break down complex topics like retirement planning, investing, taxes, and cash flow in plain English so you can understand what really matters and avoid the most common and costly financial mistakes. Everything you hear here is educational, fiduciary focused, and grounded in real world planning experience working with clients just like you."
    },
    {
      "speaker": "Josh",
      "startTime": "44.545",
      "endTime": "73.865",
      "body": "I'm your host, Josh Duncan, partner at F5 Financial Planning. Let's get started. When most people think about job compensation, they picture a salary and maybe a bonus. But for executives, the real value often comes from something much bigger, the benefits package. Executive packages are designed to attract and retain top talent."
    },
    {
      "speaker": "Josh",
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      "body": "And when managed wisely, they can create significant long term wealth. The challenge, these benefits are complex. If you don't fully understand them, you risk missing opportunities or even losing money. Today, we'll walk through the major perks of executive benefits packages and discuss how they work. Remember, each of these benefits will have specific differences by employer, and it's important to review your employer's benefits package in detail."
    },
    {
      "speaker": "Josh",
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      "body": "Let's start with stock options. Stock options give you the right to buy shares of your company's stock at a set price called the exercise or strike price. If the company's stock price rises above that strike price within a certain period of time, you can buy at a discount and enjoy the upside. But here's the catch. Options don't last forever."
    },
    {
      "speaker": "Josh",
      "startTime": "140.53",
      "endTime": "175.89001",
      "body": "They expire after a certain number of years, typically seven to ten years from the grant date. And when you exercise them, you may owe taxes right away depending on the type of option. Your financial plan should include your stock options and a strategy of when to sell the stocks after purchased. Overconcentration of your company's stock is an accident waiting to happen. The lesson with stock options is clear."
    },
    {
      "speaker": "Josh",
      "startTime": "176.21",
      "endTime": "202.18001",
      "body": "Timing is everything, waiting too long, and they could expire worthless. A thoughtful plan can increase your net worth, manage taxes, and help achieve financial freedom. Now let's move to restricted stock units or RSUs. RSUs are different. Instead of an option to buy, these are actual shares granted to you, but with restrictions."
    },
    {
      "speaker": "Josh",
      "startTime": "202.42",
      "endTime": "247.85501",
      "body": "Typically, you don't own the shares until they vest, meaning you meet certain conditions like staying with the company for a set number of years. When RSUs vest, you own the stock, and there is nothing for you to do. The value of the stock when it vests is treated as ordinary income, which can be a significant amount of additional income. However, all of the employers of the executives our firm serves will sell some of the shares immediately to cover at least 20% for federal taxes. Some companies will allow you to set the amount of state and federal taxes to be withheld."
    },
    {
      "speaker": "Josh",
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      "endTime": "293.5",
      "body": "This is where tax planning can help avoid surprises during tax time. The other part of planning for RSUs is when to sell the acquired shares. Since they are taxed as income when they vest and taxes are paid on them by selling some of the shares, we believe it makes sense to sell the shares upon vesting. Cash in on the benefit and diversify your investments away from the company that signs your paychecks. The key takeaway for RSUs is that they can be an amazing wealth building tool, but without a sell strategy, you risk being overexposed to one company."
    },
    {
      "speaker": "Josh",
      "startTime": "293.66",
      "endTime": "324.15",
      "body": "Think carefully about taxes, vesting schedules, and keep your entire portfolio aligned with your investment policy statement. Next, let's talk about nonqualified deferred compensation plans or NQDCs. These plans let you defer part of your salary or bonus into retirement. The perk is that you don't pay taxes on that money today. Instead, you're taxed when you receive it later."
    },
    {
      "speaker": "Josh",
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      "body": "Some employers allow you to receive the money in a lump sum or over three or five year periods. The longer you can spread out the distribution, the less impact on your taxable income in those years. But here's the risk. Your deferred money is an unsecured promise from your company. If the company has financial trouble, your deferred compensation could disappear."
    },
    {
      "speaker": "Josh",
      "startTime": "355.45",
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      "body": "Here's how it works. Each year, you will elect the portion of your compensation you want deferred to the NQDC. The employer holds this liability on their books and agrees to a return on the money. This one can be hard to wrap your head around as the money may not be invested like your four zero one k, but just credited a return. NQDC deferral elections should be reviewed each year as part of your financial planning."
    },
    {
      "speaker": "Josh",
      "startTime": "388.815",
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      "body": "Additionally, these deferrals should typically come after you are set to max out your four zero one k contributions since those plans are funded and not future promises to pay. The lesson here is balance. NQDCs can be a powerful tax and retirement tool, but you don't want too much of your future tied up in the fate of one employer. Now let's look at supplemental executive retirement plans or SERPs. These are designed to give executives additional retirement income beyond what traditionally or traditional retirement accounts allow."
    },
    {
      "speaker": "Josh",
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      "body": "Think of them as another way your company can level the playing field since high earners are limited in what they can contribute to a four zero one k or IRA. SERPs are funded by the employer, typically as a contractual promise to pay benefits at retirement. It's common for the benefits to vest or become available upon a specified number of years worked and age. The benefits are usually paid out as annuities or lump sums once the executive retires and taxed as ordinary income. But here's the caution."
    },
    {
      "speaker": "Josh",
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      "endTime": "517.11",
      "body": "SERPs are also tied to your employer, just like deferred compensation. If your company struggles financially, your SERP benefit could be at risk. That's why the foundation of your retirement plan should still include maxing out your four zero one k, backdoor Roth contributions, and investing in a taxable brokerage account. Treating the SERP as a bonus can allow for more creative financial planning five to seven years out from retirement. The takeaway here is that SERPs can be an excellent supplement, but you still need a solid independent retirement plan outside of just this benefit."
    },
    {
      "speaker": "Josh",
      "startTime": "517.51",
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      "body": "Let's shift to something that doesn't always get the spotlight, insurance and health benefits. Executives often receive enhanced life insurance, stronger long term disability coverage, and sometimes even perks like annual executive physicals. These may not sound glamorous, but they are critical. Imagine you're at the peak of your career and an unexpected health issue sidelined you. Without proper disability insurance, your income could drop significantly."
    },
    {
      "speaker": "Josh",
      "startTime": "553.995",
      "endTime": "591.565",
      "body": "This could blow up your financial plan, helping your children attend college and when you can retire. And those annual executive physicals, they're not just a box to check. They can help you catch health concerns early, keeping you in the game longer, both professionally and personally. Let's not forget increased life insurance benefits for your family should the unexpected happen. It's rare to find life insurance premiums lower than with employer group rates."
    },
    {
      "speaker": "Josh",
      "startTime": "592.045",
      "endTime": "625.84",
      "body": "Although the insurance may not be portable, protecting your family is the highest priority. If you are being offered higher life insurance benefits, it's typically worth taking the benefit. The bottom line here is that protecting your income and health is just as important as building your wealth. Here's one of my favorite perks, professional services support. Some companies cover the cost of financial planning or tax services."
    },
    {
      "speaker": "Josh",
      "startTime": "626.0",
      "endTime": "667.215",
      "body": "If you have this, take advantage of it. It's like having the company pay for advice that can save you thousands of dollars. Many companies will contract with other professional service companies that you'll need to use to to take advantage of these benefits. If you have your own financial planner or tax professional, don't hesitate to ask if your company will pay for some or all of their fee. The downside to working with larger professional service companies can be limited services that that only focus on one aspect of your financial life."
    },
    {
      "speaker": "Josh",
      "startTime": "667.935",
      "endTime": "687.7",
      "body": "Do your research on what services are provided before signing up. If the benefits are positive for you and your family at no cost to you, sign up. So don't ignore this benefit. It's one of the easiest wins you can have in your package. Now let's zoom out."
    },
    {
      "speaker": "Josh",
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      "endTime": "735.12",
      "body": "In the real world, most executives don't receive every single one of these benefits. You may only have two or three of them available depending on your company and your role, and that's okay. The key is not how many benefits you have, but how well you use the ones available to you. For example, if you only have stock options and a deferred compensation plan, your strategy will look very different from someone who has RSUs, a SERP, and enhanced insurance coverage. What matters most is creating a plan that integrates your specific benefits with your broader financial picture."
    },
    {
      "speaker": "Josh",
      "startTime": "735.6",
      "endTime": "774.08",
      "body": "Things like your four zero one k, outside investments, estate planning, and long term goals. The real power of executive benefits isn't just in the perks themselves, but in how you coordinate them with the rest of your financial life. That's where you can turn a good package into a wealth building strategy that supports the freedom and security you're working toward. Here's the bottom line. Executive benefits packages can be one of the most powerful wealth building tools you have, but they're also complex."
    },
    {
      "speaker": "Josh",
      "startTime": "774.815",
      "endTime": "804.78",
      "body": "Take the time to understand each piece. Build strategies for when and how to use them, and don't hesitate to get professional guidance to make sure all the moving parts are working together. If you found this episode helpful, please consider subscribing to the podcast and leaving a review. It helps more people find the show and continue learning how to make smarter financial decisions. I'm Josh Duncan, partnered F5 Financial Planning."
    },
    {
      "speaker": "Josh",
      "startTime": "804.86005",
      "endTime": "818.325",
      "body": "If you would like to learn more about how we help our clients achieve financial freedom for personal significance, please visit our website at www.f5fp.com. Thanks for listening, and I'll see you in the next episode."
    }
  ]
}