P&G Retirement Pre-Planning

We recommend meeting with us five to seven years prior to retirement, or any time after age 50. Our initial conversation will involve an in-depth discussion about your personal goals and family dynamics as you approach and enter retirement.  Our assessment includes a review of your investments, including your Profit Sharing Trust and Savings Plan allocation, stock options, spousal retirement assets, pensions, and other financial data.

The output of this data collection and review process is a dynamic retirement report that details the probability of your plan's success, considering future savings, conservative asset growth assumptions, and various scenarios for retirement income.  During this process, we can make live adjustments to your plan to illustrate the impact of retiring earlier/later, various income expectations, accepting or declining a retirement package, and many other factors.

Diversification Strategies Within the Profit Sharing Trust/Savings Plan

After age 50, P&G employees can access additional investment choices within the Profit Sharing Trust.  While participating in the plan, employees must maintain at least a 40% position in company stock.  

We will educate you on your pre-retirement investment options and recommend an investment allocation that is appropriate for you with the goal of generating returns and mitigating risk versus maintaining a significant concentration in P&G stock.  

We will also work with you to monitor your allocation over time and make additional changes as warranted by your personal financial plan.  Stifel maintains an analyst who covers P&G stock, whose research we use as a key input in assisting our clients when considering stock sales. 

Stock Option Planning:  Short-Term Achievement Reward (STAR) and Long-Term Incentive Plan (LTIP)

Our team leverages Black Scholes stock option methodology to help our clients quantify the remaining time value of their stock options and make informed exercise decisions considering their personal tax picture and financial objectives.  Combined with an in-depth understanding of our clients' goals, we can assist in managing stock option exercise decisions to reduce concentration risk and help you exercise opportunistically and in a tax-efficient manner.

Each of our clients impacted by STAR and LTIP receives personalized recommendations annually regarding how to elect to receive their awards between cash and stock options for STAR and between stock options and restricted stock units (RSUs) for LTIP.  Our analysis considers a breakeven analysis for each compensation election to help you make an informed decision.

Retirement Tax Strategy

Incorporating tax-efficient retirement planning strategies is a core focus and differentiator for our team.  Leveraging Stifel's tax professionals, our clients benefit from an in-depth knowledge of many critical elements of the retirement tax planning process, including:

• Distribution strategies from the Profit Sharing Trust
• Net unrealized appreciation (NUA) as applied to P&G preferred stock
• Appreciated stock gifting strategies (donor-advised funds)
• Managing capital gains and the 0% tax bracket
• Custom retirement plans for consulting income
• Tax-advantaged retirement income planning

In many cases, we review side-by-side scenario-based tax plans that help our clients to assess the impact of certain decisions, including stock option exercises combined with extra retirement income (severance package), charitable gifts, and deferral strategies for other income.  This helps our clients make informed decisions before triggering a taxable event.

Stifel is neither affiliated with nor endorsed by Procter & Gamble (P&G).

Asset allocation and diversification do not ensure a profit or protect against loss.

Stifel does not provide legal or tax advice. You should consult your legal and tax advisors regarding your particular situation.