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Retirement Planning

The Ultimate Guide to Cash Balance Pensions After Leaving Your Job

Wondering what to do with that retirement account from your previous employer? If you’ve worked in Corporate America, there’s a good chance this account is a cash balance pension plan. Unlike traditional pensions, these plans often provide more options when you leave a company.

What is a Cash Balance Pension Plan?

A cash balance pension plan is a retirement plan where the company contributes on behalf of its employees. Unlike a 401(k), employees do not contribute to these plans. Think of it as an additional 401(k) match from your employer. The company deposits funds into the plan based on your compensation, and rather than being invested, the balance typically grows at a crediting rate based on interest rates.

When you leave the company, your plan balance usually continues to earn interest credits, but the company stops making contributions.

What to Do with Your Plan After Leaving the Company

If you’ve left your job and are wondering what to do with your old cash balance pension plan, the answer will depend on your unique situation. Generally, these plans offer four different options, which can vary based on your former employer.

Option 1: Annuitize the cash balance pension, turning it into a monthly income stream. This works similarly to creating your own “traditional pension.”

Option 2: Roll the balance over into an IRA. This will allow you to continue investing the funds how you’d like.

Option 3: Leave the money in the plan. Some companies allow this, and some do not. Most companies have an age at which you MUST initiate another option, usually 65.

Option 4: Take a lump sum distribution. It’s important to note the entire balance would be taxed as ordinary income. 

Taking a lump sum distribution is rarely the best choice unless your plan balance is relatively small. Therefore, we’ll focus only on the other options for the rest of this article.

We’ll walk you through each option and the scenarios in which it might make sense. This will give you a complete understanding to help guide your decision-making process. Finally, we’ll provide a list of steps to determine which option may be most favorable for your situation.

Option 1: Annuitizing the Plan to Create an Income Stream

Think of this option as trading in the balance of your cash balance plan for a “traditional pension.” Company plans typically offer multiple payout options, such as single or joint life.

If your goal is to create additional income in retirement, this may be the right option for you, especially if you are retiring now and need the income immediately. However, this option is not ideal if you prefer flexibility, liquidity, and control of your assets. It may also be less appealing if you are still working and are far from retirement.

What are the advantages of annuitizing my cash balance pension?

  • It allows you to generate an income stream to supplement your other retirement income sources.
  • The joint payout option ensures the income stream lasts for both your and your spouse’s lives, hedging against longevity and premature death risks.
  • The investment risk is transferred to the company, meaning you do not have to manage the assets; you just receive the income.

What are the disadvantages of annuitizing my cash balance pension?

  • You’re trading an asset for an income stream. You lose liquidity, so if you need the cash sooner, you can’t access it.
  • The income stream ends with you (or your spouse if they outlive you and you’ve chosen the joint option). It will not be passed along to your heirs or be part of your estate.
  • There is the potential opportunity cost of not being able to invest the balance elsewhere.

Important Note: If you determine that you want more guaranteed income and are planning on annuitizing your cash balance pension, it’s always advisable to price out other income-producing investments (such as outside annuities) to compare income amounts. You might find a higher income rate at another insurance company.

Option 2: Rolling Over Your Cash Balance Pension to an IRA

Just like you can roll over your 401(k), you can also roll over your cash balance pension into an IRA. You can transfer it to an existing IRA or set up a new one.

What are the advantages of rolling over my cash balance pension?

  • You have complete control over how funds are invested, allowing you to align your investment strategy with your overall financial plan.
  • You maintain the asset, which can now be passed down to your heirs and your estate.
  • If you decide you prefer a guaranteed income stream later, you can always purchase an annuity in the future.
  • Distributions are easier. Most cash balance plans do not permit partial distributions, but rolling over to an IRA gives you full control over distributions, making it easier to receive your money (e.g., direct deposit vs. a mailed check).
  • This option offers the most flexibility.

What are the disadvantages of rolling over my cash balance pension?

  • You bear the investment risk, so if the investment decreases in value, so does your asset.
  • You no longer receive the interest credit you would have if you left the money in the plan.
  • You can no longer annuitize through your company’s plan (see Option 1). However, you still have the option to annuitize through another insurance company at a later date if you choose to do so.

Option 3: Leave the Money in the Cash Balance Plan

Most companies allow you to leave the money inside the cash balance plan even after you’ve left the firm. However, there is usually an age limit by which you must choose another option, typically age 65.

If you leave the money in the plan, you will continue to earn interest credits. The crediting rate is usually based on a treasury or corporate bond rate published by the IRS. Be sure to check your plan’s Summary Plan Description for more details.

What are the advantages of leaving money inside my cash balance pension plan?

  • Ideal for conservative investors who do not need additional income right now.
  • Beneficial if you are satisfied with the interest rate it’s paying, especially if it’s higher than what you could get elsewhere.
  • If you’re close to retirement, it keeps the annuitized income option available for later use.

What are the disadvantages of leaving my money inside my cash balance pension plan?

  • Potential opportunity cost for aggressive investors or those far from retirement who might benefit from investing in riskier assets.
  • There is a time limit on how long you can keep the funds in the plan.
  • Facing limited liquidity compared to other investments, making it harder to access funds quickly.
  • Many plans do not allow for partial distributions.

Steps to Evaluate What Cash Balance Pension Option is Best for You

This decision should not be made in isolation. It’s crucial to assess how your choice integrates with your overall financial plan. Since the decision is permanent, be thorough in your evaluation. Here are the steps you can take to start the process:

Step 1: Determine Your Retirement Status

The first step is to consider whether you are retiring soon or planning to continue working. If you’re retiring, you’ll need immediate income; if you’re still working, you have more time before requiring retirement income. This distinction will also impact the Internal Rate of Return (IRR) calculations in later steps.

Step 2: Assess Your Guaranteed Income Sources

Identify your sources of guaranteed income in retirement, such as Social Security, pensions, and annuities.

Step 3: Estimate Your Retirement Expenses

Calculate your anticipated expenses in retirement. Focus on essential needs like housing and food before considering discretionary spending like vacations and entertainment.

Step 4: Identify Any Income Gaps

Compare your estimated expenses with your guaranteed income sources to identify any shortfalls. If there is a gap, consider whether annuitizing the cash balance pension can fill it. If there isn’t a gap, annuitizing might not be necessary.

Step 5: Calculate the Internal Rate of Return (IRR)

Use the IRR formula in Excel or have your financial advisor run the analysis for you. The IRR will give you a number to compare against alternative investment strategies. (Tip: If your advisor can’t run this analysis, it might be time to find a new one!)

Step 6: Compare IRR to Investment Strategies

Always compare your cash balance pension annuitization IRR with other investment options. Annuitizing the pension might provide a steady income stream, but it’s essential to evaluate whether it’s the best choice compared to other investment strategies.

Step 7: Run Financial Forecasts for Each Option

This step is crucial. Run separate financial forecasts for each option to see how they affect your long-term financial future. Compare these scenarios to understand the impact on your overall financial health and legacy planning.

By following these steps, you’ll gain a better understanding of which option makes the most sense for your unique situation. Always run scenarios against your overarching financial plan to ensure you make the best decision for your financial future.

Final Thoughts on Managing Your Cash Balance Pension

Deciding what to do with your old cash balance pension plan is a significant choice that can impact your financial future. It’s essential to consider how each option fits into your overall financial strategy and long-term goals. Whether you choose to annuitize, roll over into an IRA, or leave the funds in the plan, understanding the advantages and disadvantages of each option is crucial.

By thoroughly evaluating your situation and running detailed forecasts, you can make an informed decision that aligns with your retirement goals and financial needs. Remember, this decision is permanent, so take the time to explore all your options carefully.

If you’d like assistance exploring the best option for your old cash balance pension plan, we’re here to help. Schedule a free consultation with us today. Together, we’ll analyze your unique situation and guide you toward making an informed decision tailored to your needs.

 

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

Cornerstone Planning Group, Inc., (“CSPG”) is an SEC registered investment advisory firm. The information contained herein should not be construed as personalized investment advice and should not be considered as a solicitation for investment advisory service. The information (e.g., tax ) provided is believed to be accurate however CSPG does not guarantee or otherwise warrant such information. For more information regarding CSPG you can refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and review our Form ADV Brochure and other disclosures.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

What Should I Do With My PRA When I Leave MetLife?

By Carmine Coppola

The MetLife Personal Retirement Account (PRA) is a cash balance pension, an additional retirement account that complements the discretionary 401(k) plans most employers offer today. This plan allows employers to reward employees with extra retirement savings on a tax-deferred basis. Though cash balance pensions do not allow for you to contribute to the plan yourself or choose how to invest the balance, it’s important to understand what options you do have when you leave or retire from the company, including understanding how to manage distributions when the time arrives. (For more information on how the PRA works, visit our MetLife page to get yourself up to speed and prepare for making a smart decision.)   

Evaluating Your PRA Options When Leaving MetLife

If you’re moving onto the next chapter of your career or life soon, you’re probably already asking yourself the big question: What do I do with my PRA when I leave MetLife? 

The answer depends on your specific circumstances. The PRA offers four different options when you separate from MetLife:

  1. Leave the money in the plan, although you can only do this until age 65.
  2. Annuitize the PRA into an income stream – almost like purchasing a traditional pension.
  3. Roll the balance over into an IRA, allowing you to invest the funds however you’d like.
  4. Take a lump sum distribution, noting that the entire balance would be taxable to you.

Hint: Option 4 is rarely the best option (unless your balance is particularly small), so we’ll focus on the other three potential choices in this piece.

Let’s start by reviewing each option and the scenarios in which you might use it. Then, I’ll provide you with a list of steps to help you determine which option is most favorable for your situation. 

First, we’ll explore each option’s nuances and the contexts in which they are most advantageous so you have a comprehensive understanding to guide your decision-making process effectively.

Option 1: Leaving Money In The Plan

MetLife only allows you to leave your balance in the PRA while employed or until you turn 65, whichever occurs later. So, this option is not available if you’re retiring or leaving the company after age 65. However, if you’re under 65, this could be a solution to consider. 

Your PRA will receive monthly interest credits based on the declared annual crediting rate. This rate is based on the 30-year treasury bond rate for November of the prior year. You can reference your benefits portal to find the current year’s crediting rate. 

If you’re considering leaving money in the plan, you’ll find it helpful to compare how this would fit into your overall investment portfolio and look at the alternatives. Remember, all investments have tradeoffs, so working with your investment advisor is important to determine which option aligns with your financial plan. 

Who does this option work well for? 

  • Someone who is a conservative investor and does not need additional income. 
  • Someone who is a conservative investor and finds this rate to be higher than rates they are currently receiving in other vehicles.
  • Someone who is close to retirement and may want to tap into the guaranteed income option at a later date. 

Who does this not work well for? 

  • Someone who is a more aggressive investor or nowhere near retirement. 
  • Someone who is not anticipating they will need additional income.  

In my experience, it’s uncommon for people to leave money in their PRA unless they plan to annuitize it later.

Option 2: Annuitizing the Plan to Create an Income Stream

This option essentially amounts to purchasing a “traditional pension” for yourself using the cash balance of your PRA. MetLife has multiple annuity options, both single-life and joint-life. 

If you’re looking for additional income in retirement, going this route may work well for you. If you’re retiring and know you’ll need an income stream immediately, this could help you meet that goal. On the other hand, if you prefer liquidity and flexibility with your assets, it might not be the option that aligns with your needs. And if you’re far from retirement and still working, it probably won’t appeal to you.

What are the advantages of annuitizing my PRA? 

  • It allows you to create a guaranteed income stream to supplement your other retirement income sources. 
  • It offers the option to choose a joint payout with your spouse, allowing the income stream to continue for whichever person lives longer. 
  • It transfers the investment risk to MetLife. 

What are the disadvantages of annuitizing my PRA?

  • The asset loses liquidity, so you can’t access cash if you need it sooner.
  • If you choose the joint option, the income stream dies with you or the last surviving spouse, meaning it will not be passed along to your heirs or be part of your estate.
  • Choosing this option means potentially facing the opportunity cost of not being able to invest the cash balance elsewhere.

Important Note: If you determine that you want more guaranteed income and are planning on annuitize the PRA, it’s always advisable to price out other income-producing investments as well, such as outside annuities, to compare income amounts. You might find a higher income rate at another insurance company. 

Option 3: Roll Over the PRA into an IRA

This option is simple. It involves taking the cash balance of your pension and rolling it into an IRA you already have or establishing a new IRA account to roll it into. 

What are the advantages of rolling over my PRA?

  • It gives you complete control over how funds are invested, allowing you to align your investment strategy with your overall financial plan. 
  • It enables you to maintain the asset, which can now be passed down to your heirs and your estate. 
  • If you change your mind and decide you’d rather have a guaranteed income stream, you can always purchase an annuity at some point in the future. 
  • It offers the most flexibility out of all the options. 

What are the disadvantages of rolling over my PRA?

  • You bear the investment risk, so if the market goes down, so does the value of the asset. 
  • You no longer receive the interest credit.
  • You can no longer annuitize through the MetLife pension (see Option 1). But you will still have the option to annuitize through another insurance company at a later date if you choose to do so. 

Steps for Evaluating What Option Is Best for You

Let me start by saying that determining what to do with your PRA is not a decision that should be made in a vacuum. It’s something that should be considered in tandem with the rest of your financial plan. Here are the steps you can take to start the evaluation process:

Step 1: Are You Retiring or Continuing to Work?

The answer to this question will play an important factor in determining what the goal of money is. Typically, if you’re retiring, you have an immediate income need, and if you’re continuing to work, you have time before you need to start taking income. This consideration will also affect the IRR calculations in Step 5. 

Step 2: What are Your Guaranteed Income Sources in Retirement?

We’re only talking about guaranteed income sources here — Social Security, pensions, annuities, etc. 

Step 3: What Are Your Anticipated Expenses in Retirement?

Create an estimate of your retirement expenses. For the most helpful figure, I would focus first on the needs (home, food, etc.) versus the wants (vacations, entertainment, etc.). 

Step 4: Identify the Income Gap

See how much of your anticipated expenses will be covered by your current guaranteed income sources. If there is a gap, do the math to determine whether or not annuitizing the PRA will fill the gap. If there is no gap, annuitizing probably does not make sense. 

Step 5: Calculate the Internal Rate of Return (IRR) of Annuitizing Your PRA

You can run this using the IRR formula in Microsoft Excel OR have your financial advisor or planner run the analysis for you. (Pro tip: If they can’t run it for you, it’s time to start looking for a new advisor!) The IRR will give you a number that you can compare to an alternative investment strategy. 

Step 6: Compare PRA IRR to Investment Strategy

It’s crucial to always compare any available financial option to an alternative. In our experience, the annuitization of the PRA is often a sound income stream. However, it’s not always the most favorable investment choice when considering its IRR compared to an alternative. 

Keep in mind that the alternative investment strategy can also be another income-generating investment. So, even if you want more income, it’s important to compare all options before deciding to annuitize the PRA.

Step 7: Run a Financial Forecast for Each Scenario

This is the most important step. Run each option as a separate forecast and compare the possibilities. This will provide a long-term view of how each option may affect your financial future. You could find that annuitizing the PRA fills the income gap but leaves you with fewer assets to pass along to your children, or vice versa. 

If you want to know what to do with your PRA when you leave MetLife, walking through these seven steps should help you understand which option makes the most sense for your specific circumstances. When making a final decision, you should run all the scenarios against your overarching financial plan. Your situation is unique and should be treated as such. 

Empowering Your Future: Making Informed Decisions with Your PRA Post-MetLife

Navigating the options for handling your Personal Retirement Account (PRA) after leaving MetLife requires thoughtful consideration and strategic planning. You’ll need to weigh the benefits and drawbacks of each potential choice against your unique financial goals, needs, resources, and preferences. By following the outlined steps and seeking guidance from an experienced financial advisor, you can confidently make an informed and appropriate decision. 

Schedule a free consultation with us today, and we’ll help you choose a path that aligns with your long-term retirement goals, risk tolerance, and overall financial plan and vision for the future.  

 

This represents the views and opinions of Strata Capital and has not been reviewed or endorsed by MetLife or any of its employees. MetLife is not affiliated with Strata Capital and has not endorsed or approved their services.

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

Cornerstone Planning Group, Inc., (“CSPG”) is an SEC-registered investment advisory firm. The information contained herein should not be construed as personalized investment advice and should not be considered as a solicitation for investment advisory service. The information (e.g., tax ) provided is believed to be accurate however CSPG does not guarantee or otherwise warrant such information. For more information regarding CSPG you can refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and review our Form ADV Brochure and other disclosures.

The information and opinions provided in this material are for general informational purposes only and should not be considered as tax, financial, investment, or legal advice. The information is not intended to replace professional advice from qualified professionals in your jurisdiction.

Tax laws and regulations are complex and subject to change, and their application can vary widely based on the specific facts and circumstances involved. Any tax information or advice in this article is not intended to be, and should not be, used as a substitute for specific tax advice from a qualified tax professional.

Investment advice in this article is based on the general principles of finance and investing and may not be suitable for all individuals or circumstances. Investments can go up or down in value, and there is always the potential of losing money when you invest. Before making any investment decisions, you should consult with a qualified financial professional who is familiar with your individual financial situation, objectives, and risk tolerance.

4 Reasons to Tap into Your MetLife Leadership Deferred Compensation Plan Sooner Than Later

By Carmine Coppola

MetLife offers a lucrative benefits package; it’s one of the biggest advantages of working for the company. When it comes to retirement savings opportunities, especially, your available options are remarkably better than what the majority of employers offer. But many MetLife employees are unfamiliar with a plan that sets their benefits apart from most: the MetLife Leadership Deferred Compensation Plan.

This plan allows eligible employees at salary grades 10S to 13S, such as Assistant Vice Presidents and MetLife company officers, earning over $345,000 in total compensation for 2024 (determined by the IRS and may change yearly), to defer salary or bonus payments. 

You’re probably already familiar with the 401(k), Personal Retirement Account (PRA), and traditional pension (for the tenured folks) and how they can benefit your financial well-being. The MetLife Leadership Deferred Compensation Plan is a lesser-known and far more flexible tool. It is a nonqualified deferred compensation plan (NQDC), also known as an elective deferral or supplemental executive retirement plan. 

In this article we’ll give you a brief overview of how the plan works and then share four reasons why you need to begin utilizing it to your advantage, starting today.  

What Makes the MetLife Leadership Deferred Compensation Plan Different?

There’s far more to this plan than you might think.

The MetLife Leadership Deferred Compensation Plan allows you to put away and invest an uncapped amount each year, reducing your taxable income by the amount you defer. You can also enjoy tax-deferred investment growth until distribution, with flexibility on when you start receiving distributions — at retirement or sooner if you want to align payouts with other earlier financial goals. And distributions are taxed at ordinary income tax rates, so imagine how you can use this strategically alongside your tax planning.

These deferred compensation plans also allow you to pick investments and can even qualify for a company match; consider this a raise! But unlike a 401(k) plan, a nonqualified deferred compensation plan places no limits on your contributions, no age restrictions on withdrawals, and no required minimum distributions. 

So, how does this work?

How Deferments Work

MetLife permits you to defer your base salary, Annual Variable Incentive Compensation Plan or successor annual cash bonus plan or program (AVIP), sales incentive compensation, and/or performance shares. Minimum deferrals are 5% and max limits are 75% of your base salary with AVIP and Sales Incentive Performance Shares at 100%. 

How the Company Match Works

Not only does participation allow for taking advantage of the tax benefit, but compensation deferrals are also eligible for company contributions through the MetLife Auxiliary Match Plan. The match is the same as the 401(k), with a maximum company match of 4% of compensation. For more details on the Auxiliary Match, you can visit our MetLife page where we give an overview of how that works. 

How Distributions Work

When making contributions to the NQDC, you choose when and how distributions happen — meaning, you can tie distribution to a specific date or event, like a retirement date or layoff. And you also choose how the payment is received: lump sum or up to 15 annual installments. Again, distributions are taxed at ordinary income tax rates. 

How Investing Works

NQDC contributions are not actually invested into funds in the way your 401(k) investments are. Instead, you choose which tracking funds to track and the plan balance will adjust according to the performance of those funds. MetLife currently offers 11 different tracking funds, each of which mirrors the performance of an index or actual fund. (Reference your guide to see what funds are available.) 

Key Considerations in MetLife Leadership Deferred Compensation Planning

It’s gratifying to know you work for a solid employer who values your contributions and wants you to stick around. However, you have some critical decisions when you elect to participate in a deferred compensation plan. Participation typically involves adhering to a designated enrollment period and establishing a written agreement with MetLife. 

This plan agreement outlines crucial details, such as the amount of income to be deferred, the deferral period or schedule of distributions, and your investment choices. Once elections are made, they can be difficult or impossible to change, so you don’t want to go into this lightly. 

With so many possibilities and so much at stake, deferred comp plans can feel overly complex and even intimidating. The best way to start thinking about your strategic approach is to break it down into three main components:

  1. What do you want to use the deferred compensation for? 
  2. How much of your salary or bonus will you defer each year?
  3. When do distributions from the plan start, and how long do they last?

Before moving forward, understanding your options and looking at the big picture is vital

We will explore four situations in which you can confidently and strategically leverage your MetLife Leadership Deferred Compensation Plan.

Strategy 1: Tax Reduction

Deferrals into your MetLife Leadership Deferred Compensation Plan lower your taxable income in the year you defer income. So, if your total compensation was $400,000 and you decided to defer $25,000, your annual income would be $375,000. 

A common strategy we use is offsetting other income, such as stock compensation or inherited IRA withdrawals, with deferred comp.

Let’s look at an example. 

Gianna’s salary and bonus are $550,000 per year. She also receives stock compensation in the form of RSUs (restricted stock units), which, on average, is about $50,000 per year. RSUs are taxed as ordinary income when they vest, regardless of whether you sell the stock. She inherited an IRA from her father and is currently withdrawing $25,000 per year, which will continue for the next several years. This puts her total income at $625,000, placing her in the highest federal tax bracket. Keeping tax calculations simple for this example, Gianni would pay $187,636 in federal taxes. Making her effective tax rate 30.7%

Gianna does not need the additional $75,000 in income from the RSUs and IRA distribution, so she is losing a ton of money to taxes on income she will not be using right now. What can she do?

Because MetLife offers her a deferred compensation plan, she decides to defer $75,000 of her bonus each year. This will offset the amount she receives from the stock compensation and inherited IRA distributions. 

Why would she do this? Look at the chart below.

As you can see, Gianna’s current plan puts her just over the threshold for the highest tax bracket. Deferring $75,000 of her compensation allows Gianna to reduce her taxable income to $550,000, keeping her just beneath the highest tax bracket. And her federal tax bill would be reduced to $160,690, saving her about $27,000 in federal taxes! This strategy allows her to maintain the same lifestyle spending, while the $75,000 she defers can be invested for retirement inside her NQDC plan. 

If she continues this over the next ten years, that is an additional $750,000 in retirement savings, not including any investment growth. She can do this without spending any less or adjusting her lifestyle now. She’ll also realize the potential advantage of paying less in taxes because when she takes the distributions, she will be retired and in a lower tax bracket. 

Strategy 2: Saving for Specific Goals

This strategy is simple and effective. All it takes is aligning your deferred compensation distributions with a specific goal in mind. This goal can be anything from your children’s education expenses to a down payment on a vacation home. Let’s look at how this concept works.

Bill and Laura have ambitious plans for their future. They want to make sure college expenses are covered for both children and purchase their dream vacation home. Their son will start college in eight years and their daughter in ten years, and they’d like to purchase their vacation home before the kids start college. 

Cash flow is great for Bill and Laura right now. Bill has a deferred compensation plan through MetLife, and he developed a strategy to defer his salary over the next six years to fund the couple’s goals.

A common component of deferred compensation plans is the ability to have multiple accounts within the plan. Each account can have its own investment strategy and distribution schedule. When you make your elections, you decide which account you will be saving into. Bill’s plan at MetLife allows him to save into three different accounts inside his deferred comp plan. 

As you can see from the chart, Bill created three accounts, each with a specific goal in mind. Account #1 will begin paying out in Year 8, over four years to pay for his son’s college. Account #2 will begin paying out in Year 10, over four years to pay for his daughter’s college. Account #3 will be paid out in a lump sum in Year 7 to cover the down payment on the vacation home. 

Bill decides that deferring $50,000 per year into the accounts over the next six years will allow him to achieve his financial goals. Looking at the yellow boxes on the schedule, you can see that when distributions are made from the plan, they are each aligned with specific goals.

It’s important to note that we did not account for any investment growth in this example. This is something you should consider when determining if this strategy is right for you. Also, deferred compensation distributions are taxed as ordinary income, so being aware of what your total taxable income is likely to be at the time of distribution is also crucial. 

Strategy 3: Filling the Income Gap until Social Security

If you decide that you want to retire “early” or before age 65, the question you might be asking is, “Where will my income come from?” Most people rely on Social Security to supplement their income in retirement. But how does that work if you retire earlier than you would like to begin drawing SSI or before you become eligible? 

John and Sara are a married couple who are both 60 years old. They plan to retire when they are 62 and would like to wait until 67 to take Social Security. John has a pension that will start when he retires at age 62. 

This is what their projected income looks like right now:

You can see that John and Sara will have an income gap of $60,000 for the five years before Social Security kicks in. They will have to pull this from retirement accounts or other investments, which can lead to depleting assets sooner than anticipated.

Let’s examine an alternate scenario in which Sara utilizes her deferred compensation plan through MetLife. In this example, Sara defers 50% of her yearly bonus until retirement. The deferred compensation plan is to be distributed over five years, starting when Sara reaches age 62. 

This is what their projected income looks like using Sara’s MetLife Leadership Deferred Compensation Plan:

The gap they previously had to make up is now filled by Sara’s distributions from her deferred comp plan. This has a significantly positive impact on their future because now the couple can let their retirement and investment assets continue to grow over the five-year period and use those gains later to supplement their income. 

It’s important to remember that a deferred compensation strategy like this needs to be reevaluated each year. There are a lot of moving parts to your plan; to stay on track, you need to adjust as needed constantly. For example, you may have some unexpected expenditures that affect your cash flow and may need more money in your paycheck instead of deferring that compensation later. 

Strategy 4: Hedging for Getting Laid Off Early or Early Retirement

Let’s face it, companies go through layoffs and restructuring all the time. No employer, including MetLife, is immune to shifts in the economy, technological changes, or trends that lead to job losses. Unfortunately, the employees usually feel the most impact, especially the more highly compensated ones. Having a plan in place in the event you were to get laid off is essential to your financial well-being. The good news is if you have access to a deferred comp plan, it can be a great tool to hedge against uncertainty.

Let’s look at this in action. Mike has been a vice president at MetLife for the last ten years and is currently 55 years old. One of his major concerns is how an unexpected layoff would affect him and his family financially. To hedge against this possibility, he began deferring a portion of his bonus each year through his deferred comp plan. He set the distribution date as the day he separates or retires from the company, and the distributions will be paid out over five years. The current value of the plan is $350,000. 

Looking at this chart, you can see that no matter when Mike leaves MetLife, he has a purpose for his deferred compensation. If he gets laid off at 58 (or any age, for that matter), the deferred comp will pay out over the next five years. Being that the current value is $350,000, that could be around $70,000 in income each year. This will allow him to buy some time while he looks for another job, or he could accept a job making less money since he has this income to supplement his pay. 

In the second scenario, Mike retires early at 62. He would receive his payout over the next five years until he is 66. The deferred compensation income would supplement his other retirement income until he takes Social Security. It could also pay for health insurance since he most likely would not be covered under his employer’s plan, and Medicare does not start until he is 65.

The last scenario has Mike retiring at the end of the year he turns 65, the longest he would continue working. If he’s able to stay that long, Mike could then use the deferred compensation to supplement his retirement income. This would enable him to withdraw less from his retirement and investment assets, allowing them to continue growing. He can also defer Social Security until 70 to max out his benefit since the MetLife Leadership Deferred Compensation Plan payout would supplement his income in the meantime. The point is that Mike would have a lot of options and flexibility. 

Important Caveats

It’s important to remember that all the potential benefits of the MetLife Leadership Deferred Compensation Plan come with some risks. It’s essentially an I.O.U. from MetLife; if they go bankrupt, your deferred compensation contribution is considered unsecured debt and could be lost. If a significant portion of your wealth is also held in stock options and restricted stock units, relying heavily on deferred compensation could mean too much of your financial well-being depends on MetLife’s financial strength. Moreover, effectively leveraging deferred compensation plans requires careful thought and planning. 

Keep in mind that NQDC plans have been dubbed “golden handcuffs” for a reason. As a highly compensated employee, your work is a valuable asset to MetLife as an employer, so the benefit is designed to incentivize retention. The more you make, the more you pay in taxes, and the more appealing the tax shelter is. If you intend to stay with MetLife, the financial advantages of using the plan strategically can be substantial and potentially well worth the carefully measured risk. 

Defer, Don’t Delay

Deferred compensation is a potent tool that necessitates a thoughtful approach. Carefully weigh your options and proceed with cautious enthusiasm — sooner rather than later. Don’t delay putting the plan to work for your future; remember, time is valuable. 

Decisions regarding the MetLife Leadership Deferred Compensation Plan should be intricately woven into the fabric of your comprehensive financial and retirement plans. Given the complexity and stakes involved, we recommend collaborating closely with a seasoned financial advisor familiar with the plan to help navigate the myriad possibilities and make informed choices aligned with your long-term goals. 

As specialists in MetLife benefits and executive wealth planning, we offer a complimentary consultation to answer your deferred compensation questions. You can schedule a free session with our team here.

 

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This represents the views and opinions of Strata Capital and has not been reviewed or endorsed by MetLife or any of its employees. MetLife is not affiliated with Strata Capital and has not endorsed or approved their services.

This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.

The MetLife 401(K) After-Tax Advantage: A Strategy for Building Tax-Free Growth

By Carmine Coppola 

Let’s face it: retirement is going to be expensive. As inflation climbs, healthcare expenses surge, and sticker shock becomes the norm, it might be time to reconsider your savings strategies. The good news is that your MetLife 401(k) comes with an often-overlooked advantage: the ability to contribute after-tax funds, even after you have maxed out your allowable IRS limit.

Depending on when you start and how aggressive your approach is, you’ll need to stash away at least 10-15% of your income to fund your lifestyle in retirement. Even maxing out your regular and catch-up contributions could fall far short of your needs. When you’re accustomed to a higher-than-average income, setting aside $23,000 annually if you’re under 50 years of age and $30,500 if over 50, simply isn’t enough. 

What Are After-Tax Contributions?

Not every 401(k) plan allows after-tax contributions, but your MetLife 401(k) offers this option as an added benefit — a special kind of retirement plan contribution available in addition to traditional pre-tax and Roth contributions.

It’s called “after-tax” because the money contributed has already been subjected to income tax at the time of deposit, and it doesn’t provide an immediate tax deduction like pre-tax contributions. However, the earnings on after-tax contributions grow tax-deferred within the 401(k) account, and they are also subject to income tax when withdrawn in retirement.

The MetLife 401(k) allows you to contribute between 3% and 45% of your eligible pay to the plan — unless you are considered a highly compensated employee; if so, those limits vary and can change year-to-year. The set contribution limits are for combined before-tax 401(k) savings contributions, Roth 401(k) savings contributions, and/or after-tax savings contributions. 

It is important to note that a maximum of 11% of your contributions can be after-tax savings contributions.

So Why Use the After-Tax Contribution Option?

The IRS limits annual contributions for 401(k) plans for pre-tax and Roth contributions. The after-tax option allows for higher limits. Again, as of 2024, the combined limit for pre-tax and Roth contributions is $23,000 per year, or $30,500 if you’re 50 or older. However, the total contribution limit, including after-tax contributions, is significantly higher — up to $69,000 or $76,500 for those aged 50 or older in 2023. For those who may be behind on retirement savings and have the means to do so, after-tax contributions can be a viable strategy to make up some ground. 

For example, let’s say you have a total income of $200,000 in 2023, are under 50 years old, and have maxed out the pre-tax and Roth 401(k) contributions at $23,000. Since MetLife will match $8,000, the total contributions will be $31,000. That leaves a gap of $38,000 before you hit the total contribution limit of $69,000. Because MetLife allows up to 11% in after-tax contributions, you can make up to $22,000 ($200,000 x 11%) in after-tax 401(k) contributions.

Conversion to Roth — A Backdoor Strategy to Optimize Your Savings

Another big advantage of MetLife’s 401(k) plan is that it allows participants to perform in-service rollovers. An in-service rollover refers to the transfer of funds from an employer-sponsored plan to an individual retirement account (IRA) or Roth IRA while you are still actively employed by the company. This makes it possible for participants who have contributed after-tax to roll over their after-tax contributions to a Roth IRA.

A Roth conversion can be a valuable strategy for building a tax-free retirement income stream — especially for those in a high tax bracket who do not qualify for a Roth and would like to continue getting the maximum deduction for pre-tax contributions.

Since after-tax contributions have already been taxed, the conversion to a Roth account won’t trigger additional taxes. The only exception is if you have generated earnings on those after-tax contributions, which is typically a result of when the funds have been sitting in the account for a while. It doesn’t mean you can’t do the conversion; it simply means that those earnings will need to be rolled into a traditional IRA in order to avoid taxation. To minimize potential tax implications, your contributions can go to the Roth account, and any earnings will go to a traditional pre-tax IRA. 

In other words, take note: if you implement the backdoor Roth strategy, it is important to complete the conversion as quickly as possible — so that all earnings can be withdrawn tax-free. 

A word of caution: this strategy can have some negative consequences if not done properly. It can even adversely affect your company match. Before considering a strategy like this, we recommend first speaking to Aon Hewitt to find out how much of your funds are eligible and then consult a financial and tax professional.

Tax-Deferred vs. Tax-Free Growth – The Difference Could Be Huge!

Like pre-tax and Roth contributions, after-tax contributions grow tax-deferred until you withdraw the funds in retirement. What’s often overlooked is the impact of rolling the dollars to a Roth right away versus leaving the funds to grow in the plan. 

Backdoor Roth Comparison

If you plan to contribute a large amount, consider moving the funds to a Roth account shortly after making the contribution. This is what is referred to as a mega backdoor Roth. In this scenario, the funds will have the opportunity not only to grow tax-deferred, but the withdrawals will also be tax-free. To learn more about this strategy, check out our blog on back-door Roth contributions. 

After-tax contributions can be a remarkably impactful addition to a retirement savings strategy. But before you jump in, it’s important to review your cash flow and determine whether contributing extra dollars is feasible. Additionally, it’s critical to note that company rules and federal laws for 401(k) plans can change. Always check with your plan administrator and consult with a financial advisor or tax professional to understand how after-tax contributions fit into your overall retirement and tax planning strategy.

 

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

Cornerstone Planning Group, Inc., (“CSPG”) is an SEC registered investment advisory firm. The information contained herein should not be construed as personalized investment advice and should not be considered as a solicitation for investment advisory service. The information (e.g., tax ) provided is believed to be accurate however CSPG does not guarantee or otherwise warrant such information. For more information regarding CSPG you can refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and review our Form ADV Brochure and other disclosures.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Equity Compensation 101: How to Unlock the Wealth Potential of Your Stock Awards

By David D’Albero

When you reach a company’s top management or executive ranks, your compensation is often multifaceted. Smart employers recognize that high-caliber executives are pivotal in steering the company toward success. This is why executive compensation packages are carefully designed to attract, retain, and motivate top executive talent. 

Typical executive compensation packages include base salary, bonuses, stock options, deferred compensation, and additional benefits and perks, such as health insurance, retirement plans, and even personal use of corporate resources. In recent years, stock compensation has become increasingly popular because of its ability to align management performance with company performance while also cultivating a personal investment in the company’s success among leaders and key personnel.

Understanding the details of your equity compensation empowers you to directly tie your performance to company growth. This alignment then accelerates both organizational success and your own financial interests.

How Stock Compensation is Paid

Equity compensation serves as a long-term incentive, rewarding employees for their dedication over time. To receive full ownership of the stock, you must meet “vesting” requirements – essentially gaining a vested interest in the company through service over a defined period. Your vesting terms will outline when and how your equity compensation is paid out.

Vesting is structured in portions, typically following either a “cliff vesting” schedule or a “graded vesting” schedule.

With cliff vesting, you become 100% vested all at once after a set timeframe, usually three years. This structure requires you to stay with the company for that period before your incentive fully kicks in.

Graded vesting takes a phased approach, distributing ownership gradually at regular intervals over a timeframe of typically three to six years. For example, a five-year schedule might give you 20% equity per year. If you leave after three years under this model, you would vest 60% of the total compensation.

Now that we’ve covered some vesting basics let’s look closer at the different types of equity compensation and how they factor into your overall pay.

Restricted Stock, Restricted Stock Units, and Performance Shares

Equity programs serve strategic purposes like incentivizing loyalty and performance, as well as enhancing shareholder value. Companies offer various equity-based awards as part of executive pay. Let’s break down some key options.

Restricted Stock (RS)

With Restricted Stock, you receive actual company shares upfront, becoming a shareholder with voting rights and dividends. However, the shares get placed into an escrow account. You cannot access or sell them until vesting conditions are met.

Vesting terms often involve tenure thresholds, performance goals, or major company milestones such as a successful major product launch, merger, acquisition, sale, or IPO. These conditions encourage loyalty and achievement tied to shareholder interests.

You incur taxes on restricted stock when granted based on the fair market value. Additional tax events can follow at vesting triggers. Failing to meet vesting conditions (e.g., leaving the company before the shares vest, goals set are not met, or violating SEC trading restrictions) may forfeit the shares.

Restricted Stock Units (RSU)  

Restricted stock units differ from restricted stock, as they are typically reserved for executive-level members and board of directors only. However, RSUs still aim to incentivize loyalty, usually based on a time-based vesting schedule without other performance conditions.

Think of RSUs as a company’s promise to deliver a certain number of shares of company stock at a future date per the vesting terms. During the vesting period, you don’t participate in voting or dividends. The share transfer and tax obligations only happen at completion. 

RSUs are treated as ordinary income in the year the award vests, as opposed to when they are awarded. They focus on tenure-based loyalty over added performance milestones. But, leaving the company early can still result in forfeiture.

Performance Shares

Performance Shares take a results-driven approach. Rather than time-based vesting, earning these rights hinges on achieving predefined targets – tying rewards directly to company and individual performance.

The better you perform against set objectives, the more shares you receive. This links compensation to strategic goals beyond just retention incentives.

Tax Considerations

The tax process aligns across equity compensation programs. To calculate ordinary income, subtract the purchase cost or exercise price from the fair market value (FMV) at vesting.

If you sell the stock later, the difference between the sale price and FMV gets treated as a capital gain or loss. The holding period past vesting categorizes it as short or long-term.

Stock Options

Stock options give employees the right (but not requirement) to purchase company shares at a set price within a defined timeframe. They aim to attract and retain top talent.

Allocation is often tied to role seniority. For instance, a standout VP prospect could receive options equating to 1-2% ownership, while CEO packages may encapsulate 5-10% or more. These numbers fluctuate widely depending on factors like company stage, industry, and specific hiring needs.

Non-Qualified Stock Options (NQSOs) 

Non-qualified stock options (also called non-statutory options) provide the right to buy company shares at a set “exercise” or “strike” price. These options face fewer tax and vesting restrictions than incentive stock options.

Incentive Stock Options (ISOs) 

Incentive Stock Options also grant purchase rights at predetermined prices. But ISOs come with special IRS rules around vesting periods and holding times which are designed to incentivize you by linking your financial benefit to the company’s long-term performance. You need to meet the requirements to receive preferential tax treatment.

Tax Considerations 

The main variance between NQSOs and ISOs comes down to taxes. With non-qualified options, the spread between fair market value and your exercise price gets treated as immediate ordinary income. This amount is subject to ordinary income tax and, in some cases, Social Security and Medicare taxes as well.

But incentive stock options become more advantageous if you hold the shares for at least one year post-exercise and two years after receiving the options. Hitting these milestones unlocks preferential long-term capital gains rates at sale or trade, allowing you to maximize gains.

Stock Appreciation Rights (SARS)

SARs are a form of employee compensation that provides the potential upside of stock value gains without having to purchase shares. You receive the appreciation between grant and exercise prices, settled in either cash or stock.

For example:

Company X grants 1,000 SARs when shares trade at $20. After three years, the stock reaches $40 and the rights become vested and exercisable.

At that point, you could take $20,000 cash (1,000 x $20 price appreciation). Or 500 shares via the share equivalent ($20,000 at $40 per share).

Either way, the profit gets taxed as ordinary income when you exercise SARs. These rights aim to incentivize holders through stock growth without diluting ownership.

Employee Stock Ownership Plan (ESOP)

ESOPs are a type of retirement plan that enables employees to become partial owners of the company by acquiring shares of company stock. ESOPs aim to foster a sense of ownership and align employee interests with company performance.

Shares get awarded into an ESOP trust and then allocated to individual accounts per a predetermined formula factoring criteria like salary and tenure.

Upon leaving the company, employees receive the value of their vested ESOP shares, distributed in cash, stock, or both. These disbursements count as ordinary income, except for IRA rollovers or utilizing Net Unrealized Appreciation (NUA).

NUA allows unique tax treatment where just the initial stock cost basis faces income tax while gains qualify for long-term capital rates. For example, an employee retiring after 30 years has a $1M ESOP balance with a $250k cost basis. They could take $250k as income and $750k at preferential capital rates.

The NUA strategy has many complexities, so guidance from financial and tax advisors is critical for proper execution.

Managing Your Stock Compensation

Equity awards unlock immense wealth potential through company ownership and preferential tax treatment. When strategically managed, they can accelerate reaching your biggest financial goals.

Deferred compensation programs, in particular, let you postpone income tax while holdings potentially appreciate over the long term. This has the potential to compound gains dramatically compared to immediate income recognition.

The key lies in navigating vesting milestones, tax implications, holding periods, and more to optimize these programs for your situation. With the right guidance, equity compensation can shift your finances into overdrive.

As specialists in executive wealth management, Strata Capital understands both the immense opportunities and complexities of equity compensation. We help corporate leaders maximize the value of their compensation package through strategic tax planning, deferred income optimization, and other financial strategies. If you are ready to unlock the full potential of your shares, options, or performance awards, contact us today to schedule a complimentary consultation.

 

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

Cornerstone Planning Group, Inc., (“CSPG”) is an SEC registered investment advisory firm. The information contained herein should not be construed as personalized investment advice and should not be considered as a solicitation for investment advisory service. The information (e.g., tax ) provided is believed to be accurate however CSPG does not guarantee or otherwise warrant such information. For more information regarding CSPG you can refer to the Investment Adviser Public Disclosure website (www.adviserinfo.sec.gov) and review our Form ADV Brochure and other disclosures.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Strategically Using 401(k) After-Tax Contributions to Boost Retirement Savings

Retirement is expensive. If you want to recreate your income in retirement, you’ll need to save an average of 10-15% of your income throughout your career. But it’s no secret that most people either get started late or find themselves tracking behind their targets late in the game. At some point, you may realize that hitting your numbers might require being more aggressive than planned. But how should you go about doing this? One of the most overlooked and underutilized strategies available for employees to get on track is the 401(k) after-tax contribution. 

What Are 401(k) After-Tax Contributions?

In addition to the traditional pre-tax and Roth contributions, most plans also allow for  401(k) after-tax contributions. It’s called “after-tax” because the money contributed has already been subjected to income tax at the time of deposit, which means it doesn’t provide an immediate tax deduction like pre-tax contributions. However, the earnings on after-tax contributions grow tax-deferred within the 401(k) account, just like pre-tax contributions. They are also subject to income tax when withdrawn in retirement.

So Why Use 401(k) After-Tax Contributions?

1. Higher Contribution Limits

The IRS has annual contribution limits for 401(k) plans, which include a limit on pre-tax and Roth contributions. The combined limit for 2023 pre-tax and Roth contributions is $22,500 per year, or $30,000 if you’re age 50 or older. 

However, 401(k) after-tax contributions allow you to save more for retirement if you have the means to do so. The 2023 401(k) total contribution limit, including after-tax contributions, is much higher—up to $66,000 or 73,500 for those aged 50 or older. 

2. Conversion to Roth

You can convert your 401(k) after-tax contributions into a Roth IRA or Roth 401(k) when you leave your job or if your plan allows in-service conversions. Some plans will even let you do this internally. 

Roth conversions can be valuable for building a tax-free retirement income stream. Since after-tax contributions have already been taxed, the conversion to a Roth account won’t trigger additional taxes. 

There’s only one exception to consider: if you’ve generated earnings on your after-tax contributions, which may happen if the funds have been sitting in the account for a while. This doesn’t mean you can’t do the conversion; it simply means that those earnings must be rolled into a traditional IRA to avoid taxation. 

In short, your contributions can go to the Roth account, and any earnings will go to a traditional pre-tax IRA. 

3. Tax-Deferred/Tax-Free Growth

Much like pre-tax and Roth contributions, 401(k) after-tax contributions can grow tax-deferred until you withdraw the funds in retirement. This means your retirement savings have the opportunity to grow more efficiently over time. 

If your plan permits, you may be able to move the funds to a Roth account shortly after you’ve made your contribution. This is called a mega backdoor Roth. Funds will have the opportunity to grow not only tax-deferred, but the withdrawals will also be tax-free. Check out our blog on back-door Roth contributions to learn more about this strategy. 

Backdoor Roth Comparison

4. Employer Match 

If you’re not taking full advantage of your employer match, you’re leaving lots of money on the table. Some employers provide a matching on 401(k) after-tax contributions, similar to how they match pre-tax contributions. 

Remember, an employer match provides an immediate return on your investment, so check into your employee benefits and make certain you aren’t missing out on this valuable perk. 

Are You Considering 401(K) After-Tax Contributions?

As a strategy, 401(k) after-tax contributions can considerably impact a retirement savings plan. But before you begin contributing, review your current cash flow to determine whether contributing extra dollars is reasonable. Prioritizing your family’s stability is key. While making sacrifices can lead to rewards, it’s essential first to secure your emergency savings and meet your immediate needs.

Before making any decisions, remember that company rules and federal laws governing 401(k) plans can change. If you’d like to discuss your situation with a financial advisor, schedule a meeting with us. Together, we can explore how after-tax 401(k) contributions can enhance your overall retirement and tax planning strategy. Let’s connect and discuss how we can optimize your financial future.

Strata Capital is a wealth management firm serving corporate executives, professionals, and entrepreneurs in the New York Tri-State Area, focusing on corporate benefits and executive compensation. Co-founded by David D’Albero and Carmine Coppola, the firm specializes in making the complex simple to ensure clients feel confident in their financial decisions. They can be reached by phone at (212) 367-2855, via email at carmine@stratacapital.co, or by visiting their website at stratacapital.co.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material was prepared by Crystal Marketing Solutions, LLC, and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate and is intended merely for educational purposes, not as advice.

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