CLIENT STORY

Retirement Planning for a Corporate Executive

Wealth Strategy

aging couple consults financial advisor

The Situation:

As CEO of an electronics manufacturer, Henry is contemplating retirement within the next five years. Much of his wealth is currently invested in his company through stock and options, not to mention his 401(k) plan. 

His wife Mary is supportive of his decision to retire, but they both have a growing concern over outliving their assets. Will their investments support their lifestyle? She suggested they meet with PNC Wealth Management.

The Solution:

At PNC Wealth Management, an Investment Advisor explained the risk of having so much of their wealth concentrated in a single stock — a common scenario among many corporate executives.

PNC recommended an equity collar that gave Henry downside protection against a drop in the company stock price. Next, Henry’s portfolio was adjusted to create a greater concentration in the bond market, given his retirement goal of five years. That way, the couple would potentially receive a steadier income stream to help support their current lifestyle.

Appropriate wealth planning and gifting strategies — in consultation with the Henry’s legal and tax advisors — rounded out the retirement planning advice that Henry and Mary received from PNC Wealth Management, helping to potentially reduce their tax burden and helping to secure their future. The revised plan gave the couple the peace of mind they needed to enjoy their wealth — and their lifestyle — long into retirement.

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Important Legal Disclosures & Information

This story represents a hypothetical scenario and is intended for illustrative purposes; the person described is fictional and not an actual client, but the scenario is intended to reflect a typical and/or previously experienced situation. Actual client experiences and outcomes may vary and future performance or success is not guaranteed.

The PNC Financial Services Group, Inc. (“PNC”) uses the marketing name PNC Wealth Management® to provide investment and wealth management, fiduciary services, FDIC-insured banking products and services, and lending of funds through its subsidiary, PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and to provide specific fiduciary and agency services through its subsidiary, PNC Delaware Trust Company or PNC Ohio Trust Company. Securities products, brokerage services, and managed account advisory services are offered by PNC Investments LLC, a registered broker-dealer and a registered investment adviser and member of FINRA and SIPC. Insurance products may be provided through PNC Insurance Services, LLC, a licensed insurance agency affiliate of PNC, or through licensed insurance agencies that are not affiliated with PNC; in either case a licensed insurance affiliate may receive compensation if you choose to purchase insurance through these programs. A decision to purchase insurance will not affect the cost or availability of other products or services from PNC or its affiliates. PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC does not provide services in any jurisdiction in which it is not authorized to conduct business. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Act”). Investment management and related products and services provided to a “municipal entity” or “obligated person” regarding “proceeds of municipal securities” (as such terms are defined in the Act) will be provided by PNC Capital Advisors, LLC, a wholly-owned subsidiary of PNC Bank and SEC registered investment adviser.

“PNC Wealth Management” and “PNC Wealth Insight” are registered service marks of The PNC Financial Services Group, Inc.

Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.

Insurance: Not FDIC Insured. No Bank or Federal Government Guarantee. Not a Deposit. May Lose Value.

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