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Healthcare Provider Update: Healthcare Provider for ExxonMobil For the upcoming year, ExxonMobil's primary healthcare provider is Blue Cross and Blue Shield of Texas (BCBSTX). Effective from January 1, 2025, employees and their families will access healthcare through BCBSTX, ensuring improved network access and support for managing healthcare costs. Prescription drug services will continue to be provided by Express Scripts. Potential Healthcare Cost Increases in 2026 In 2026, ExxonMobil may experience significant healthcare cost increases, paralleling broader trends in the Affordable Care Act (ACA) marketplace. With some states projecting premium hikes of over 60% and the potential loss of enhanced federal premium subsidies, many employees could see their out-of-pocket costs escalate dramatically. The Kaiser Family Foundation has highlighted that without congressional action, most marketplace enrollees might face increases exceeding 75%. These combined pressures will necessitate careful planning and strategic healthcare decisions from ExxonMobil employees going into 2026. Click here to learn more
'ExxonMobil employees should review their retirement planning strategies to see if they are keeping pace with the economic environment, as consistent adjustments can help ensure long-term financial security,' says Brent Wolf, a representative of the Retirement Group, a division of Wealth Enhancement Group.
As we navigate changing market conditions, ExxonMobil employees should periodically review their retirement plans and make adjustments where necessary to stay on track for their future goals, 'says Kevin Landis, of the Retirement Group, a division of Wealth Enhancement Group.
In this article, we will discuss:
1. Employee benefits & pension trends.
2. Recent restructuring and layoffs impact retirement plans.
3. 401(k) adjustment tips for dealing with economic shifts.
Those at ExxonMobil might notice how much more complex your financial planning needs get the longer you work there. Although you might have similar goals as other coworkers - saving for retirement after leaving ExxonMobil or helping pay for your children's college - the components necessary to reach them all require careful management. The best ExxonMobil financial planning strategies start with assessing your situation holistically and simplifying it by finding the right experts to help you.
High-Net-Worth ExxonMobil individuals' comprehensive asset allocation. Your life may have a lot of moving parts because you work at a ExxonMobil company. This makes sound financial planning essential. Complete financial planning examines your entire financial picture. It covers investment management, including strategic asset allocation/diversification, tax planning, and retirement planning before and after leaving ExxonMobil.
Estate planning, risk & insurance, cash flow, college funding, executive compensation, and gifting to family and/or charities. And in investment management, a strategic asset allocation is key. You select the appropriate split between stocks, bonds, and other assets based on your financial goals and situation, called strategic asset allocation. Then you diversify within these categories as much as possible. If you took, for example, a 60% stocks 40% bonds allocation, you would have 60% U.S. large-cap stocks, 20% U.S. small and mid-cap stocks, and 20% foreign stocks within the stock band.
You may adjust your asset allocation as the market changes and your investments increase in value. During a bull market, for example, when stocks are outperforming, your stock portion might be 70% of your portfolio instead of 60%. Once this happens, rebalance to your target allocation by selling some stocks and using the proceeds to buy more bonds until you get back to the 60% to 40% split you wanted. You should only adjust your strategic allocation when things get really personal, like when you are retiring from ExxonMobil or having a major life event.
Don't get duped into changing your allocation because of market events. Let your stocks grow during a bull market, but it would increase your overall portfolio risk and leave you overexposed when the market falls. A secondary financial planning consideration for high-net-worth individuals is how to manage taxes. The higher your income and net worth, the greater the tax burden. Think strategically about the kinds of investments and where you hold them to minimize taxes. You might, for example, keep income-producing investments like bonds or bond funds in a tax-sheltered account like an individual retirement account (IRA). Another way to reduce taxes is by giving to a charity or loved ones.
The IRS lets people deduct up to 100% of qualified charitable contributions made in cash to a qualifying charity, and give up to USD 15,000 per person per year without paying gift taxes yourself. Plus, any assets you gift to your beneficiaries today will reduce future estate taxes they will owe. Most investors' financial goal is retirement from ExxonMobil retirement. Some would think that retirement planning should be easier for high-net-worth people - you have more assets to fund your retirement - but that is far from the case. High-net-worth individuals find retirement planning just as complex, if not more complex.
First, figure out how much income you'll need in retirement after leaving ExxonMobil. Starting with your current monthly expenses is good. List all of your expenses as essential or discretionary - utilities and groceries - and those you could live without - restaurant meals and travel. Consider how you want to spend your retirement time as you review your spending. This helps you figure out how your expenses might change when you leave ExxonMobil.
Maybe you spend less on transportation when you don't have to commute to and from work every day but more on travel when you travel through your retirement bucket list. Forecast your expenses as precisely as possible. You can be vague about what you will spend if that helps you out. You can revise your estimate as your retirement plans settle. You know how much you want to spend in retirement and can plan how you'll get that income. You could draw retirement income from investments like retirement and non-retirement savings, Social Security, real estate, or a business.
Like you did with your expenses - essential versus discretionary - you should create two categories of retirement income sources:
fixed and variable. Fixed sources of income have a set amount that you know will be paid out periodically - Social Security, a pension, or an annuity - for example. Variable income comes from sources that change value - like your investments. Your basic retirement expenses once you leave ExxonMobil should ideally be covered entirely by fixed income sources. You'll get maximum flexibility with your retirement spending. When stocks are down, you can trim your discretionary expenses without sacrificing your living space. A second way to maximize your retirement income is managing your taxes during retirement. Retirement accounts are one such tool.
There are two types of retirement accounts:
Traditional, or pre-tax, accounts, and Roth, or after-tax, accounts. Traditional accounts allow you to deduct some contributions today. So you pay no taxes until you take the money out of the account. You can contribute today, but with a Roth account, you can take the money out tax-free when you leave ExxonMobil. The main stumbling block to Roths is the IRS won't let high-income earners contribute. Individuals and heads of households making over USD 144,000 in 2022 can't contribute to Roth IRAs, and those making USD 129,000 or less can make reduced contributions. In 2022, for married couples filing jointly, the income phase-out range is set at USD 204,000, with couples earning more than USD 214,000 no longer contributing.
Saving for retirement in traditional and Roth vehicles, if you can, will help you with taxes when you leave ExxonMobil. Since Roths aren't taxable when withdrawn, you can use them for tax-free income in retirement. Unless you can contribute to a Roth now, you can also talk to a financial advisor about making Roth conversions in lower-income years when you can afford to pay a little more tax in return for more future tax-free income. You can see that good financial planning doesn't stop when you stop working for ExxonMobil. Most likely, you want to pass the wealth you've built up with your family through estate planning. And as complicated as retirement planning is, estate planning for high net worth is just as complex.
Estate planning is about getting as much of your inheritance as possible where you want it. And trust is one of the best tools for this. The types of trusts and customizations available make picking the right one and getting it set up properly a bit of a chore. Work with a financial professional and an attorney to determine the right type of trust and draft the appropriate trust agreement. And you need to insure your assets and income accordingly. This includes getting appropriate health, homeowners, auto, boats, and other vehicle and excess liability coverages. So you got long-term care or life insurance, or both. Maybe those fit your situation? Using a Financial Advisor From The Retirement Group Financial planning for a ExxonMobil employee involves many moving parts.
Hence, many investors choose to work with a financial advisor - but not just any financial advisor. Partner with someone who understands ExxonMobil company benefits for the best advice on financial planning. The Retirement Group advisors train to help ExxonMobil employees develop a customized financial plan to meet your financial goals. The Retirement Group holds its advisors to high ethical and educational standards and demands that they serve their clients' best interests. Our advisors will never recommend an investment unless they are confident it is right for you. How a financial advisor is compensated is also an important factor when choosing one.
Advisor compensation may take one of three forms:
via commissions on investments or products they sell; via an annual, hourly, or flat fee (fee-only advisors); or a combination of fees and commissions (called fee-based advisors). Under a fee-only model, the advisor makes no commissions, so there is no incentive to promote one product over another. Instead of variable and obscure commissions, retainer-based fee models charge clients one fixed fee. That fee varies depending on your goals for wealth management and the services the advisor provides - so you get the personalized service you want.
A fee that is tailored to your needs and goals means your advisor will always work for you. About The Retirement Group The Retirement Group is a national group of financial advisors that works together. We only plan for and design retirement portfolios for corporate employees leaving ExxonMobil. And each representative of The Group has been handpicked by the Retirement Group in select cities throughout the United States. Each advisor was screened for pension expertise, financial planning experience, and portfolio construction knowledge.
TRG believes in teamwork to find solutions to our clients' problems. A conservative investment philosophy guides the team in constructing client portfolios with laddered bonds, CDs, mutual funds, ETFs, annuities, and stocks. They handle retirement, pensions, tax, asset allocation, estate, and elder care issues. This document uses different research tools and techniques. All attempts to estimate future results involve assumptions and judgments and are therefore only tentative estimates. The law, investment climate, interest rates, and personal circumstances will all change and will affect how accurate our estimations are and how appropriate our recommendations are.
Such a plan requires ongoing change sensitivities as well as constant re-examination and alteration of the plan. So update your plan a few months before your expected retirement date and do an annual review. Nothing contained herein shall be construed as an attempt by The Retirement Group, LLC or any of its employees to practice law or accounting. We look forward to speaking with any tax and/or legal professionals you may select regarding the implications of our recommendations. In your retirement years after leaving ExxonMobil, we will keep you updated on issues affecting your retirement via our complimentary and proprietary newsletters, workshops, and periodic updates. Or call us at (800) 900-5867.'
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Sources:
1. Financial Samurai. 'How High Net Worth Individuals Invest: Asset Allocation Breakdown.' Financial Samurai , 15 Oct. 2019, www.financialsamurai.com/how-high-net-worth-individuals-invest-asset-allocation-breakdown/ .
2. Right Horizons. 'Asset Allocation: A Guide for High Net Worth Investors.' Right Horizons , 22 Dec. 2024, www.righthorizons.com/asset-allocation-guide-high-net-worth-investors/ .
3. Sensible Money. 'Retirement Benchmarks: Go Beyond the S&P 500 Index.' Sensible Money , 11 Oct. 2024, www.sensiblemoney.com/retirement-benchmarks-go-beyond-sp-500/ .
4. The IFW. 'Smart Strategies for High Net Worth Investing in the Current Market.' The IFW , 27 Sept. 2024, www.ifw.com/smart-strategies-high-net-worth-investing/ .
5. Equirus Wealth. 'Asset Allocation Strategies for High-Net-Worth Individuals.' Equirus Wealth , 17 Nov. 2024, www.equiruswealth.com/asset-allocation-strategies/ .
How does the ExxonMobil Savings Plan compare against typical retirement savings plans, and what unique features does it offer that can benefit employees approaching retirement? Additionally, can you elaborate on the necessary steps ExxonMobil employees should take within the savings plan to ensure maximum contributions and employer match during their service years?
ExxonMobil Savings Plan: ExxonMobil's Savings Plan offers flexibility with pre-tax, after-tax, and Roth contributions, and features a 7% company match for the first 6% of employee contributions, a unique benefit compared to typical plans. Employees should contribute the maximum percentage to receive the full match and regularly review their investment allocations through the Voya platform(ExxonMobil_2024_ExxonMo…).
What are the eligibility criteria for employees to participate in the ExxonMobil Pension Plan, and how is the retirement benefit calculated? As employees consider their long-term savings strategy, how does the option of a lump-sum distribution versus an annuity influence their financial planning at ExxonMobil?
ExxonMobil Pension Plan: Employees are automatically enrolled and eligible for benefits after five years of service, with full retirement benefits offered at 55 with 15 years of service. The pension is calculated based on 1.6% of final average pay multiplied by years of service, minus a social security offset. Lump-sum and annuity options affect long-term financial planning, with lump sums offering immediate flexibility while annuities provide a steady income(ExxonMobil_2024_ExxonMo…).
In what ways does the ExxonMobil Employee Assistance Program (EAP) support employees during personal or family crises, and what confidentiality measures are in place to protect their privacy? Additionally, how can ExxonMobil employees access these services, and what are the key resources available through this program?
Employee Assistance Program (EAP): ExxonMobil's EAP provides confidential counseling services for personal and family issues like anxiety, addiction, and family conflict. Services are accessible by phone, video chat, or text, with privacy strictly protected. Employees can contact ComPsych for guidance and support through the GuidanceNow app or website(ExxonMobil_2024_ExxonMo…).
With the introduction of Flexible Spending Accounts (FSAs) at ExxonMobil, how do these accounts help employees manage their health care and dependent care expenses more effectively? What guidelines should employees follow to ensure they maximize their tax advantages while complying with IRS regulations during the enrollment process?
Flexible Spending Accounts (FSAs): FSAs at ExxonMobil allow employees to reduce taxable income by contributing pre-tax dollars to healthcare or dependent care expenses. Employees should estimate their expenses carefully during the enrollment period and comply with IRS rules, ensuring they submit claims by April 15th of the following year(ExxonMobil_2024_ExxonMo…).
How does ExxonMobil define "work-life balance," and what specific benefits and programs are in place to support this philosophy for employees? Can you discuss how employees can utilize these options, such as flexible schedules and leave of absence policies, without negatively impacting their career progression within the company?
Work-Life Balance: ExxonMobil promotes work-life balance with programs like “Flex Your Day,” allowing flexibility in work hours, and up to 20 days of back-up dependent care. Employees are encouraged to use these options strategically to maintain career progression while balancing personal obligations(ExxonMobil_2024_ExxonMo…).
In light of the various medical plan options offered at ExxonMobil, how should employees approach selecting the right plan to best meet their healthcare needs? What factors should they consider, including family health history and financial implications, when making their decisions?
Medical Plan Selection: ExxonMobil offers Aetna POS II and network-only options, allowing employees to choose between plans based on cost, coverage, and provider access. Employees should assess their family's healthcare needs, financial situation, and preferred providers when selecting the most appropriate plan(ExxonMobil_2024_ExxonMo…).
For ExxonMobil employees nearing retirement, what resources are available to help them understand the nuances of health benefits coordination through Medicare and their ExxonMobil coverage? How can they best navigate this transition, and what checkpoints should they be aware of to ensure they remain compliant with company policies during retirement?
Retirement Health Benefits and Medicare: ExxonMobil offers resources to help employees coordinate health benefits with Medicare upon retirement. Employees nearing retirement should explore their options through the Your Total Rewards portal and ensure compliance with company policies during the transition(ExxonMobil_2024_ExxonMo…).
What financial education resources does ExxonMobil provide to employees to promote informed decision-making about their retirement savings and benefits? Can you detail how programs like the Financial Fitness Program enable employees to strategically manage their finances and plan for retirement?
Financial Education Resources: ExxonMobil's Financial Fitness Program, provided in collaboration with Ernst & Young, helps employees manage their finances with resources such as EY Navigate and personalized financial planning. This program supports informed decision-making about retirement and savings strategies(ExxonMobil_2024_ExxonMo…).
As part of the benefits provided by ExxonMobil, how does the company facilitate employee participation in volunteer programs and charitable activities through the ExxonMobil Foundation? How can employees engage with these initiatives while also balancing their work commitments?
Volunteer Programs: Through the ExxonMobil Foundation, employees can engage in charitable activities via the Volunteer Involvement Program (VIP), which offers grants to nonprofits based on time spent volunteering. Participation in these programs is flexible, enabling employees to balance work commitments with volunteer efforts(ExxonMobil_2024_ExxonMo…).
How can ExxonMobil employees get in touch with benefits representatives to address specific questions about their retirement and savings plans? What are the recommended channels and best times to reach out for assistance to ensure they receive timely and relevant information about their options?
Contacting Benefits Representatives: Employees can reach out to the ExxonMobil Benefits Service Center at 833-776-9966 during business hours (8 a.m. to 4 p.m. CST) for assistance with retirement and savings plan questions. The Your Total Rewards portal also offers 24/7 access for reviewing and managing benefits(ExxonMobil_2024_ExxonMo…).
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