The Better Life Bulletin is our monthly letter to clients and prospective clients. It contains commentary on current events, links to useful planning articles and other things we hope will help you plan and enjoy a better life.
Initial Public Offerings: Leading Financial Advisors On Equity Compensation Planning
An initial public offering (IPO) presents unique planning circumstances for employees with equity compensation and holdings of company shares. Before your company goes public, you need to understand what will happen and what you need to prepare for.
Baby Boomers will increasingly need to look to their own accounts to support themselves in retirement, treating their 401(k) plans and IRAs as their personal pensions. To generate the stream of withdrawals they will need from their portfolios over 30 or 40 years, most Boomers will require some exposure to the potentially higher returns that equities offer. But this requirement means adding volatility risk to their portfolios to offset the longevity risk of outliving their money. Decumulation introduces a number of risk factors that can be managed by using a partial liability-driven investing (LDI) approach. This article was originally published by the CFA Institute.
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