We are commonly asked about certain Chevron benefits, and how they affect retirement:
- Employee Savings Investment Plan (ESIP)
- Employee Savings Restoration Plan (ESIP RP)
- Chevron Incentive Plan (CIP)
- LTIP Stock Options
- Stock Options (ISO) and Non-Qualified Stock Options (NQSO)
- LTIP Performance Shares
- LTIP Restricted Stock Units
- The Chevron Retirement Plan (CRP)
- Chevron Retirement Restoration Plan (RRP)
We are also often asked…
- Can I really afford to retire?
- Can I retire before 59½ and avoid penalties?
- How long will my money last?
- When is the best time to start taking my social security?
- Should I take monthly payments or the “lump sum” option from my pension?
- What strategies can help me save on taxes?
- What are the costs of long-term health care?
©Michael Kitces www.kitces.com
Sample Retirement situation that we help with:
- Sally Saver is looking to retire, she has $300,000 of CVX in her ESIP account plus around $400,000 of mutual funds.
- The CVX stock has a basis of $71,000
- Sally has a few options to move the funds out of the company 401k plan, as mentioned there are some tax saving strategies available.
- Sally can distribute her ESOP Chevron shares into a brokerage account, the $71,000 would be taxable at ordinary income rates in the current year but the difference $229,000 ($300,000 CVX value – $71,000 cost basis) would have the option to be taxed at long term capital gains rate in accordance with tax law.
- Sally would then roll the $400,000 of mutual funds over to an IRA, and take distributions as needed with the understanding that any money coming from the IRA account is taxed as ordinary income.
Barnes Wealth Management Group is not endorsed by nor affiliated with Chevron.