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Contributing solely to the AbbVie 401(k) may not be sufficient if you want to build wealth and achieve financial independence. In this blog post, we’ll discuss how and where to invest after reaching your AbbVie 401(k) contribution limit.

When you decide to leave or retire from AbbVie, you will have to make important decisions about what to do with your 401(k) plan.

In the AbbVie 401(k) plan, there are numerous investment options to choose from and selecting the right funds can be daunting. If you are feeling overwhelmed with the choices, let’s address which choices make sense.

One of the best ways to save for retirement is through the AbbVie 401(k) plan. However, for executives with pre-tax, Roth, and after-tax funding options, deciding the best course of action can be tricky.

With a strategic approach to tax planning and looking ahead, you can unlock a world of benefits that will help you stay on top of your financial game.

Getting your AbbVie bonus in March is always a great feeling. It's a reward for your hard work and dedication to your job. However, how you choose to spend that bonus can make a significant difference in your financial future.

While this bonus will come along at the same time every year you’re employed and eligible at AbbVie, the amount will vary. Whatever you end up using the money for – be intentional!

When you look at the list of failed banks on the FDIC website, there was an onslaught of failures in the 2010-2019 period and then it paused. Now with a rapidly changing interest rate and market environment, failures are picking up speed.

If you’ve been working at AbbVie through the month of March, you’ll know a bonus has come your way. But it doesn’t show up a “Bonus” on your paycheck – it’s an acronym. Let’s explain what these acronyms are, who is eligible for which kind.

When you’re looking to invest your AbbVie DCP contributions, it CANNOT happen in a vacuum. You need to consider the other investments you have, what goals you’re trying to achieve, and your risk profile.

Designing the income stream portion of the AbbVie DCP is specific to your situation. Not only does it need to factor in your current situation, but also your spouse’s benefits (if applicable) and desired lifestyle after retirement.

As a high earner, you may find yourself in the higher federal and state tax brackets. However, if you anticipate being in a lower tax bracket in the future, deferring can lead to lower overall tax bill.

The AbbVie Deferred Compensation Plan (DCP) offers an option for high-earning and essential workers who have used up their tax-deferred savings (such as 401(k), HSA, IRA) and still want to defer income from their current tax situation.

With AbbVie's DCP, you can choose when you want to receive your deferred amount. Often employees will defer while their income is high so that their income will be taxed at a lower rate.

Imagine this: even though you get AbbVie stock every year as part of the RSU program, you don't need to include that amount in your savings or overall portfolio to achieve the goals that you want to achieve. Let's explore what to do now.

Withholding on RSUs can be tricky - the rate at which you are withheld varies by company. Some companies have a flat withholding on RSUs for every employee, while others allow you to adjust it.

I have worked with clients where both scenarios (selling or holding) make sense. For those building their wealth, it usually makes sense to sell the stock and purchase a diversified portfolio.

These grants will give an employee a specific number of AbbVie shares after a vesting period. After that period is up, the employee can decide to hold the stock in their accounts or sell and get cash.

The AbbVie RSU plan - by understanding the program's structure, tax implications, and risks, you can make informed decisions. And remember: always diversify.

After years of strenuous work, retirement is the light at the end of the tunnel for many of us. However, what we don't realize is that this shift from gaining employment-based income to using investments as our primary source can be tough.

Social Security will provide benefits to your spouse if you are receiving the retirement benefit. This is regardless of whether your spouse has worked or not. In some cases, even ex-spouses can claim.

If you want to enhance your retirement lifestyle, or are not quite ready to retire fully, then you can still work and collect Social Security benefits. However, before starting a retirement job, make sure to crunch the numbers.

Young or old, it's important to understand Social Security. According to the Social Security Administration, the Trust Fund will be depleted by 2034. If no changes are made, this means future recipients could face an estimated reduction.

If you're like most people, when you think of Medicare, the first thing that comes to mind is "health insurance for seniors." And while that's one of the things Medicare does, it's much more than that.

As a high-income earner, it's vital to have a comprehensive understanding of the tax laws that apply to you. There are a number of tax reduction strategies available to high earners, and in this blog post, we will discuss them.

It is important to remember that no one theory can explain everything about the market. The best approach is a balanced one that incorporates MPT and behavioral finance.

What's the best way to ensure you have a comfortable retirement? One essential step is understanding and avoiding the pitfalls of the money illusion.

While RSUs can provide employees with the opportunity to share in the success in the company's interests, there are advantages and disadvantages to this type of equity.

According to the 2021 Retirement Confidence Survey (RCS), nearly 1/3 of workers state they are "not confident" that they can save enough for medical expenses in retirement.

For a woman wanting a successful single retirement of financial freedom, independence, and stability, there are five key things to consider.

If you know that you want to leave behind money for your family members, is it better to leave the money as a gift while you are still living or as an inheritance after death?

Inflation can have a detrimental effect on retirement savings. However, there are several approaches you can take to protect your retirement from inflation. Here's how.

AbbVie prides itself on providing a very rich compensation package to reward its employees. Among AbbVie’s compensation options includes the AbbVie Incentive Plan.

58% of men will need some Long-Term Care services for an average of 2.2 years, and 79% of women will need Long Term Care services for an average of 3.7 years. Is AbbVie's plan right for you?

AbbVie offers various options when it comes to life insurance benefits: but which is right for you?

Everyone wants to be comfortable and financially stable as they age. Here are few tips to help you secure retirement in your 50s and 60s.

You may think of it as one single event, but retirement is a multi-stage process. Learning how to understand and plan for each can help you be more prepared.

Many wealthy individuals today have become wealthy by concentrating their investments in a single company. More than that have become bankrupt by doing the same thing.

Although policy changes in 2019 eliminated the tax for not having health insurance, going uninsured still carries substantial mental, economic and physical burdens. These are issues you may face if you choose to be uninsured.

If you’ve been working at AbbVie for any period of time, you’ll know the Savings Plan – or 401(k) plan – is available for you to use. But how do you maximize it for your situation?

The Stock Market and the Economy: while some aspects may be interrelated on some level, they are not all one and the same, nor do they all indicate the status of one another.

Converting a tax-deferred retirement account ("pay tax later") to a Roth account ("pay tax now") can work out really well for some investors. But for others, it can be a completely wrong move. How do you know if it's right for you?

If you've thought about drafting a will for the first time, or are looking to revise your current will, have you thought about how you're leaving money to your heirs? Are you leavings things equally or equitably?

For those already retired, there’s a good chance you might be feeling even more concerned about recent market volatility than others. With each general economic upset, the question becomes: what should you be doing next?

If you’re taking the same risky investment approach at age 50 as you did at 25, you may decide to pump the brakes.

You don't have to have millions in the bank to benefit from establishing a trust. Learn the truth about trusts and the surprising advantages you could be missing out on.

You’re insured under Medicare, but do you know what is (and isn’t) covered? If you’re thinking about filling in the gaps, we’ve got you covered with this must-read guide to Medigap insurance.

There are a number of things to think about when optimizing your situation for your pension. Some of them can happen as far away as five years away from retirement while other large decisions can happen the day before you retire.

The AbbVie Deferred Compensation Plan allows employees to create an income stream that will be taxed at a lower rate and serve as an additional income source from their investments / pension / Social Security.

In working at AbbVie, the benefits available are substantial. As is typical in most companies, there is a life insurance benefit. But AbbVie also offers numerous supplemental life insurance plans. So, should you be signing up for these?

When you turn 65, an HSA turns into a pseudo-IRA. The account is now not just for medical expenses, it can be used for everyday expenses as well. There’s no requirement of distributions like an IRA, so the account can keep growing.

Do my Investments Need to Change When I Retire?

Dave Grant CFP®

Wednesday, September 18, 2019

But when you retire, it’s almost like you’re coming to the end of your investing journey. With that being said many people think that their risk tolerance goes down to adjust for this – but that’s not the case.

How “Asset Location” Can Result in a Larger Portfolio Balance

Dave Grant CFP®

Wednesday, May 1, 2019

Asset location is focused on where (or in what accounts) your assets are located. Asset location, though not as frequently talked about in the world of personal finance and financial planning, is equally important to asset allocation.

As you tweak your portfolio in the last few years of your career, it can be challenging to know exactly how to diversify your investments in a way that balances tax minimization and wealth growth.

You spend a large part of your life saving and investing with retirement in mind. At this point, you will need to create a retirement income strategy and tweak your portfolio accordingly, in the years leading up to and throughout retirement

When you have an AbbVie pension, knowing how else you need to prepare for retirement can be a little bit confusing. After all, you’re getting a huge chunk of guaranteed funds already – how else should you be saving?

You may have heard that some retirees look toward pension maximization as a strategy to get the most out of their pension – both for them and for their spouse. Pension maximization has some clear benefits, but it might not be your solution.

As an executive, you may be feeling the pressure when it comes to putting together an estate plan. Although this financial “to do” is on everyone’s checklist, you’re in a unique situation.

As an executive, a key element to your financial planning is income tax planning. The end goal is for you to keep as much of your hard-earned money as possible, which can be challenging when you fall into a tax bracket.

Many executives at the Director level have multiple stock plans as part of their compensation. While this seems fantastic at first glance, it can complicate your retirement plan in the long-run.

When your income has climbed to a certain point and you’re saving based on a percentage of your income, then your contribution amounts will increase as your salary increases. But beware the risks.

When viewed from a financial planning perspective, there is “good” debt and there is “bad” debt. Your goal should be to purge the bad debt that’s negatively impacting you.

Your pension payout is a major cornerstone of your retirement, so your choice of options should be based on a financial plan that considers several key factors.

You’ve done the planning. You’ve crunched the numbers. Recent stock market movements have carried you over the top, assuring you of a worry-free retirement (hopefully!), but you can’t bring yourself to pull the trigger.

Like the famous lyrics go: “More money, more problems”. The more money you have, the greater the number of complexities you have in your plan. As your wealth increases, so do the risk exposures that can take your wealth away.

Retirees today are facing a whole new set of financial challenges, which makes planning for health care in retirement all the more important.

It’s a problem that everyone will face in our lifetime – the passing of a parent. But if there is money to be left behind, how do you manage it wisely and honor their legacy?

The question has to be asked and, realizing that there are many variables that come into play, you need to have an appropriate target to shoot for.

Investors who lack clearly defined objectives and a well-conceived strategy for achieving them are much more susceptible to making these costly mistakes.

How many different investment accounts or retirement plans do you have? If it’s more than two, you could be seriously jeopardizing the long-term performance of your investments and undermining your retirement plan.

After decades of diligently saving and planning for retirement, the hard part should be over, right? It can get harder now you have to design a retirement income strategy for all of your investments.

There’s much more to an early retirement than being financially prepared. If you’re not mentally, emotionally and physically prepared, you could find your golden years to be painfully unfulfilling.

The importance of having a well-conceived, comprehensive retirement plan cannot be overstated. Without one, you leave too much to chance at a critical time in your life.

Planning for health insurance through the time you become eligible for Medicare was thought to be fairly straightforward. However, whether you have always planned on retiring early, it may not be as straight forward as expected.

While the best scenario is that a 401(k) is fully diversified and doesn’t contain any single stock positions, there are ways to manage these scenarios should they be apparent.