Thursday, October 21News That Matters
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Tag: Deferring

Deferring compensation now could build retirement wealth tomorrow

Deferring compensation now could build retirement wealth tomorrow

Finance
It's that time of the year again, when deferred compensation elections must be made ahead of the June 30 deadline. Deferred compensation is a benefit to higher-paid employees as a way to set aside additional funds for retirement. It is also a key attraction and retention tool for executives in this competitive marketplace; deferred compensation can provide new key employees a greater fringe benefit, and an important employee can be deterred from leaving, if leaving means the loss of a match or appealing investment alternatives. As such, many organizations have taken notice and increased the availability o...
Are you a high-earning executive? Deferring compensation now could help you in retirement later

Are you a high-earning executive? Deferring compensation now could help you in retirement later

Finance
There are obviously many retirement vehicles you, as a corporate executive, have considered, but have you overlooked the option of the company-sponsored non-qualified deferred compensation plan?Significant wealth may be created in NQDC plans, where assets have the opportunity to compound tax-free and investment options are frequently attractive. Two times a year, corporate executives are offered the option of deferring a portion of their compensation in order to put away money for their retirement in these plans. Quickly approaching is the June 30 deadline for deferring variable or incentive compensation for this year.Basic modeling shows that assets invested inside a deferred compensation plan for 10 years would grow 1.75 percent more annually than the same amount invested for the same pe...