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Navigating Retirement: Annuities vs. IRA Withdrawals for Evercore Employees

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There are just a couple of things almost all Evercore retirees need when they hit retirement: predictable income and protection against a cluster of risks, which include longevity risk, performance risk and sequence-of-returns risk.

In the past we have seen retiring Evercore employees utilize the “4% rule,” where retirees take annual withdrawals start at 4% of the entire portfolio and increase with inflation. They then keep the remainder of the portfolio with at least 50% invested in equities. Based on historical data, this would give a Evercore retiree about 30 years of retirement income.

As the economy constantly changes, a number of factors may force prospective Evercore retirees to revisit the 4% rule. It may be worth considering annuities as an alternative.

As life expectancies increase, Evercore retirees need to prepare for expenses over a longer time frame. In the past we would plan for a 15 to 20 year retirement, but now we need to prepare for a 30 to 35 year retirement. What is available to assist meeting the 35-year time frame?

The annuity strategy can assist with a few of the pitfalls we see in the 4% rule. For example:

If you need $50,000 per year in retirement and need that for 30 years, you may need $1.2 million in fixed income at a 3% interest rate. BUT if you look to fund $50,000 for 30 years, you can cover that expense with $800,000 by choosing the annuity option.

The other pitfall with the 4% rule is that it may not reflect a client’s risk tolerance. When you are accumulating assets, you can afford more volatility and can take on more risk than when in the retirement and withdrawal phase after leaving Evercore.

Also, should we see a drop in the market, you would be able to reduce your income using the 4% rule, which you cannot do if you choose an annuity option.

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What is the primary purpose of Evercore's 401(k) plan?

The primary purpose of Evercore's 401(k) plan is to provide employees with a tax-advantaged way to save for retirement.

Who is eligible to participate in Evercore's 401(k) plan?

All full-time employees of Evercore are eligible to participate in the 401(k) plan after completing the required waiting period.

Does Evercore offer matching contributions in its 401(k) plan?

Yes, Evercore offers a matching contribution to employees who participate in the 401(k) plan, subject to specific terms and conditions.

How can I enroll in Evercore's 401(k) plan?

Employees can enroll in Evercore's 401(k) plan by completing the online enrollment process through the company’s benefits portal.

What types of investment options are available in Evercore's 401(k) plan?

Evercore's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other diversified investment vehicles.

Can I change my contribution percentage in Evercore's 401(k) plan?

Yes, employees can change their contribution percentage at any time by accessing their account through the benefits portal.

What is the vesting schedule for Evercore's 401(k) matching contributions?

The vesting schedule for Evercore's 401(k) matching contributions typically follows a graded vesting schedule over a period of years.

How often can I make changes to my investment allocations in Evercore's 401(k) plan?

Employees can make changes to their investment allocations in Evercore's 401(k) plan on a quarterly basis or as specified in the plan documents.

Does Evercore provide educational resources for employees regarding the 401(k) plan?

Yes, Evercore provides educational resources and tools to help employees understand their 401(k) options and make informed investment decisions.

What happens to my 401(k) balance if I leave Evercore?

If you leave Evercore, you have several options for your 401(k) balance, including rolling it over to an IRA or another employer’s plan, or cashing it out.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Evercore offers its employees both pension plans and 401(k) plans, designed to ensure financial stability during retirement. As of 2023, Evercore's retirement benefits include a defined contribution 401(k) plan, which is managed through ADP and allows employees to contribute a portion of their salary. Employees become eligible for the Evercore 401(k) plan after meeting specific tenure and age requirements, though these are determined by the plan sponsor and can vary based on employment status and tenure. Evercore matches a percentage of employee contributions, though details on the exact match percentage are tied to tenure and specific employment agreements. The Evercore 401(k) plan includes features like automatic payroll deductions, potential Roth 401(k) options, and automatic enrollment, making it a flexible and tax-advantageous option for employees. In terms of a pension plan, Evercore utilizes a cash balance pension formula, where contributions are calculated based on years of service and salary. Employees typically need several years of service to fully vest in the plan.

Restructuring and Layoffs: In early 2024, Evercore announced a restructuring plan that included a reduction of approximately 5% of its workforce across various departments. The firm cited the need to streamline operations and reduce costs in response to changing market conditions and a slowdown in advisory transactions. The decision was part of a broader strategy to enhance operational efficiency.

Evercore offers stock options and Restricted Stock Units (RSUs) as part of its employee compensation package. Stock options at Evercore are typically granted to senior employees and executives, while RSUs are often given to employees at various levels as part of performance-based incentives. The specific terms and conditions for stock options and RSUs, including vesting schedules, can vary based on the employee’s role and performance.

healthcare benefits. Benefits Aggregators: Use benefits-focused sites or forums that might provide comparisons or additional details on Evercore's offerings. Search Results Summary 1. Evercore Official Website Health Benefits Information: Often includes details about health insurance plans, wellness programs, and any updates or changes. Key Terms: Coverage levels, deductibles, co-payments, out-of-pocket maximums, Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs). 2. Company Reports (Annual Reports/SEC Filings) Key Terms: Total compensation packages, benefits overview, healthcare costs, changes in benefit structures. Recent Changes: If there are significant changes or cost adjustments, they will be noted here. 3. Industry News Recent Updates: Look for articles on any changes to health benefits due to industry-wide shifts or specific to Evercore. Healthcare Trends: Innovations or shifts in benefits plans, such as increased telehealth services or mental health support. 4. Employee Reviews (Glassdoor, Indeed) Employee Feedback: Employees often share their experiences with health benefits, which might highlight recent changes or issues. Healthcare Terms: Look for mentions of specific programs or benefits that employees find notable or problematic. 5. Benefits Aggregators Comparisons and Details: Sites like Benefits.gov or benefits-focused forums may offer comparisons of Evercore’s benefits with industry standards.

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For more information you can reach the plan administrator for Evercore at , ; or by calling them at .

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