Maximize your Target Corporation Compensation Package
6 Ways You’re Leaving Money on the Table
As a Target Executive, you’ve achieved success with one of the best companies out there. But positions alone — even with a great company — won’t ensure financial stability.
Reaching the ranks of responsibility within an organization presents a unique opportunity to build financial security, but with that opportunity comes increased complexity. Options for compensation plans coupled with the potential for deferred compensation, possible equity-backed strategies like stock options, stock grants, and stock purchase plans, and bonus structures, offer plenty of room for missed opportunity. Here are the top 6 ways you may be leaving money on the table:
1. Single Stock Risk
Over the past 47 years, Target’s stock only earned a higher return than the S&P 500 in 57% of the years. During the same time frame, Target’s stock was more volatile than the S&P 500 in 98% those years.1 Any single stock will have that kind of volatility, which adds a lot of risk to your portfolio.
Are you being compensated for the volatility risk in your portfolio?
2. Mismanagement of Equity Awards
Compensation like restricted stock, stock options and performance units are one of the quickest ways to build wealth, but often not prioritized. Knowing how — and when — to capitalize on your available equity awards is complex and introduces tax challenges.
Do you have a tax-efficient strategy to maximize your equity awards?
3. Forgetting to Negotiate
54% of people surveyed2 have never negotiated pay when moving into a new role, either at a current company or a new one. Yet most roles are tied to a compensation range, with options for both direct pay and additional equity awards. Don’t miss opportunities to get the most out of your new position.
What did you leave on the table last time you changed jobs?
4. Too Little Asset Protection
One in five individuals with a net worth of $5M or more lack an umbrella insurance policy.3 This leaves you vulnerable to significant losses in the assets you’ve worked so hard to build. As you climb the ladder of success, you need to make sure you plan for unexpected losses.
Has your asset protection advice kept up with your success?
5. Lack of Income Protection
More than 51 million employed adults have no disability insurance outside of what’s available from the Social Security disability system. Yet personal injuries — including automobile and sports accidents — can leave you unable to afford the lifestyle you want for your family. 4
How would your family be impacted if you could no longer work?
6. Ignoring the Roth 401k Option
Seven in 10 employers now offer a Roth 401k 5 , but the majority of employees do not take advantage of this. The tax advantages of Roth 401k accounts could mean a big difference in your post-retirement lifestyle. Don’t miss out on how these investment strategies can impact you future.
Do you understand the current and future benefits of a Roth 401k?
About White Oaks Wealth Advisors
White Oaks has a long history of working with executives and senior management at Target Corporation. Our experienced team includes professionals with expertise on tax, financial planning, and investment analysis. We understand the complexities of your compensation structure and how to plan for your future.
Know what you’re worth. Schedule 15 minutes today for an initial review of your compensation plan.
1. Insert footnote here.
2. Randstad 2020 U.S. compensation insights survey.
3. Per a report issued by ACE Private Risk services in 2012.
4. American Council of Life Insurers, unpublished data from study released in September 2017 as Assessing Americans’ Financial and Retirement Security. ACLI found that 54.3% of non-retired households (51.3 million in total) did not report having disability insurance. Assuming there is at least on adult in each household, this means the number of “uncovered” adults is at least equal to the the number of “uncovered” households.
5. Willis Towers Watson survey year?