Collaborative Wealth

Critical Publix Pre-Retirement Issues

Through our experience, we’ve identified issues — specific to Publix Associates — that should be considered BEFORE retirement.

In order for you to have the best opportunity to live the retirement you envision, these issues must be addressed and carefully integrated into your overall financial plan.

Do I have enough money?

  • How much income can I receive from my stock/investment portfolio without worrying about eventually running out of money?
  • What about inflation?
How much do I want to keep in Publix stock?
  • How much risk am I willing to take or do I need to take to reach my goals?
  • If I diversify all or a portion of my stock, am I taking more or less risk?
  • How much Publix stock have I purchased on my own?
  • What is the “cost basis” of the stock inside and outside of the ESOP?
  • What is the Net Unrealized Appreciation (NUA) of the stock in your ESOP and 401(k)?
  • If I choose to keep all or a portion of my distribution in Publix Stock, are there any specific tax advantages to not rolling it into an IRA?

Do I want to pay taxes on all or a portion of my distribution or do I want to defer the taxes as long as possible?

  • If I choose to diversify my distribution, should I do it inside or outside an IRA?
  • If I choose to roll over my distribution into an IRA, how can I minimize the potential tax liability when it comes out?
  • What are the long term implications of each of these choices on taxes, estate planning, income options, etc.?
What are the advantages and disadvantages of:
  • Rolling or not rolling my retirement distribution into an IRA?
  • Diversifying or not diversifying my retirement distribution?

When should I take distribution of my ESOP and 401k (i.e. yr/month)?

  1. Your age? Have you reached age 55, or are you over age 59½? Both ages affect the taxation of retirement distributions in different ways and should be taken into consideration.
  2. If you are over the age of 55, did you separate from service before the year in which you turned 55?
  3. What are your projected immediate income needs, particularly in the first and second years of retirement?
  4. When are Publix’s quarterly stock evaluations and re-pricing dates?
  5. If you decide to diversify a portion of your stock, how will the “dividend record date” affect your dividends?
  6. When might you receive Inventory and Year End Bonuses?
  7. Do you have any tax year considerations?
After seeing these considerations, one of our clients remarked “I thought we’d just put the money in the bank and live off of it.”  As you can see, it’s not quite that simple if you want to do it right.
Fortunately, we’re here to help.  While there are similarities among most Publix Associates, each client comes to us with different planning considerations.  We can help you navigate through all of these questions and help you understand how they apply to your retirement goals and individual financial situation.
Find Out More:
(407) 792-3336

Chad Justice