What Fortive Employees Need to Consider Before Making the Leap to Retire Abroad

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For example, Fortive employees planning on moving overseas need to have a clear plan of action to overcome the challenges of acquiring residency and citizenship in another country,' according to Brent Wolf from The Retirement Group at Wealth Enhancement Group.

Kevin Landis of The Retirement Group, a division of Wealth Enhancement Group, explains why detailed planning is crucial for Fortive employees who intend to retire abroad. However,

In this article we will discuss:

1. The complexity of obtaining residency or citizenship abroad: Discussing the legal, financial, and cultural issues that are involved in moving overseas for Fortive employees.

2. The necessity of professional advice and planning: Emphasizing the importance of thorough preparation and professional advice to ensure a smooth transition to retiring abroad.

3. Tax advantages and financial planning for retirees: Explaining the possible tax advantages that are available through international treaties and the strategic financial planning that needs to be done for the retirement savings of Fortive employees.

Simply for political, economic, and social reasons, many Fortive employees are looking to secure citizenship or residency in other countries if the United States is not as attractive as it once was. But, getting residency in another country and, perhaps, citizenship is not as simple as just buying a plane ticket and setting an itinerary.

This is because there are many processes that may take a few years to accomplish at times. The more people who are considering these options, the more difficult these choices become. It is therefore crucial to identify the legal, financial, and cultural implications that arise in order to ensure a smooth transition to a new home overseas before embarking on this journey.

Without a proper plan and some professional advice, it can be quite a challenge to switch gears and retire during your tenure at Fortive.

The impact of potential tax advantages when retiring abroad will definitely affect your financial position. Many countries, including the United States, have tax treaties that prevent income from being taxed twice. For instance, pensioners are attracted to Portugal by the Non-Habitual Resident (NHR) regime that offers special tax concessions for up to 10 years.

You can enhance your retirement benefits by taking advantage of these perks and seeking the advice of a tax specialist. The IRS notes that because these treaties can be very different it is important to research and seek the advice of a professional (IRS, 2023). These advantages must be used by Fortive employees to enhance their retirement.

Expatriating and retiring is a process of planning a long and beautiful road trip. Just as you would not travel without a map, a well-maintained car, and knowledge of your location, Fortive employees who are retiring abroad need to plan carefully.

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Step by step, you will be guided on how to make your transition to your new home easier, from explaining cultural differences and tax benefits to helping you understand the legal and financial environment. Just as a road trip opens new views and experiences, retirement abroad presents a world of possibilities for a happy and comfortable retirement.

Sources:

1. The Warren Street Wealth Advisors Team. 'Fortive and Large Company Employees.' Warren Street Wealth Advisors, 3 Feb. 2025, Accessed from warrenstreetwealth.com.

2. 'US Taxes for Americans Retiring Abroad in 2025.' MyExpatTaxes, 20 Nov. 2024, Accessed 3 Feb. 2025 from myexpattaxes.com.

3. Toms, Mary, CPA, MBA, MS. 'US Tax Implications of Retiring Abroad: What You Need to Know.' PBMares, 10 Dec. 2024, Accessed 3 Feb. 2025 from pbmares.com.

4. 'Financial Planning for US Expatriates.' The Expat Financial, Accessed 3 Feb. 2025 from expatfinancial.com.

5. 'Retiring Overseas: What You Need to Know About Your US Taxes and Financial Planning.' Expat CPA, Accessed 3 Feb. 2025 from expatcpa.com.

   What type of retirement plan does Fortive offer to its employees?

   Fortive offers a 401(k) retirement savings plan to help employees save for their future.

   Does Fortive provide a company match for contributions made to the 401(k) plan?

   Yes, Fortive provides a company match on employee contributions to the 401(k) plan, enhancing the overall savings potential.

   What is the eligibility requirement to participate in Fortive's 401(k) plan?

   Employees are eligible to participate in Fortive's 401(k) plan after completing a specified period of employment, typically 30 days.

   Can employees at Fortive choose their contribution percentage to the 401(k) plan?

   Yes, employees at Fortive can choose their contribution percentage, allowing for flexibility in saving according to their financial goals.

   What investment options are available in Fortive's 401(k) plan?

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

   How often can employees change their contribution amounts to Fortive's 401(k) plan?

   Employees can change their contribution amounts to Fortive's 401(k) plan at any time, subject to plan rules and limits.

   Does Fortive allow for loans against the 401(k) balance?

   Yes, Fortive's 401(k) plan may allow employees to take loans against their balance, subject to specific terms and conditions.

   What happens to my 401(k) account if I leave Fortive?

   If you leave Fortive, you can choose to leave your funds in the plan, roll them over to another qualified plan, or withdraw them, subject to tax implications.

   Is there a vesting schedule for Fortive's company match in the 401(k) plan?

   Yes, Fortive has a vesting schedule for the company match, meaning employees must work for a certain period to fully own the matched contributions.

   Can I access my Fortive 401(k) funds in case of financial hardship?

   Yes, Fortive allows for hardship withdrawals under certain conditions, following IRS guidelines and plan rules.

   With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
   Fortive offers a defined benefit pension plan, specifically a cash balance plan, which provides a guaranteed retirement benefit based on a formula that combines elements of both traditional defined benefit plans and defined contribution plans. In a cash balance plan, Fortive credits a participant's account with a set percentage of their annual salary, plus interest, which grows over time. Eligibility typically includes full-time employees who meet certain service or age requirements, although specifics can vary based on employment status and tenure. In recent years, Fortive has adapted its cash balance plan to reflect changes in tax laws and interest rate strategies. For instance, in 2022, the company adjusted its plan interest crediting rates to align with prevailing market conditions and IRS regulations. By 2023 and 2024, Fortive continued to refine these rates to ensure compliance with updated tax laws and to optimize the financial performance of the plan.
   Restructuring and Layoffs: In early 2024, Fortive announced a significant restructuring initiative aimed at streamlining its operations and reducing operational redundancies. This move resulted in layoffs affecting approximately 5% of its workforce across various divisions. The restructuring is part of Fortive's broader strategy to optimize its portfolio and focus on core growth areas. This is critical to follow given the ongoing economic volatility and investment uncertainties, which may impact both job security and company performance.
   In 2022, Fortive granted stock options and RSUs to key employees and executives. Stock options were performance-based, and RSUs were part of long-term incentives. (Source: Fortive 2022 Annual Report, p. 49)
   Health Insurance: Fortive offers a range of health insurance options including medical, dental, and vision coverage. The company provides comprehensive coverage plans with options for employees to choose from based on their needs. Wellness Programs: Fortive emphasizes wellness through programs that may include health screenings, fitness reimbursements, and mental health resources. Flexible Spending Accounts (FSAs): Employees can use FSAs for eligible medical expenses. Employee Assistance Programs (EAPs): Access to confidential counseling services for personal and work-related issues. Company Annual Reports or SEC Filings Benefit Details: Recent reports confirm that Fortive provides competitive health benefits in line with industry standards. They continue to offer robust health insurance packages and wellness programs to support employee well-being. Benefit Trends: There has been a focus on enhancing mental health resources and expanding access to telehealth services.