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Workplace Assets Often Not Included in Total Financial Picture
BOSTON, December 17, 2003 - As the New Year approaches and investors examine their finances, those including workplace benefit programs in their planning should be better prepared for goals such as retirement. Yet Fidelity Investments notes that the assets acquired through stock option or employee stock purchase plans are often overlooked.
"While employee stock plans can be an excellent introduction to investing, we've found the vast majority of participants don't include these assets as part of their overall financial picture," says Sally Geaney, executive vice president, Fidelity Personal Investments. "Participants should examine their stock options or shares of company stock - particularly given the market's recent performance - to see how their total portfolio is affected."
Fidelity's Stock Plan Services group offers the following tips to help employees incorporate their stock plan assets into their financial planning.
Build Over Time - Employees can slowly build equity in the firm where they work through employee stock plans, whether options are granted to them or by purchasing company stock at a discount. Gradually accumulating these assets through a workplace plan could tip the scales in their favor of reaching long-term goals. Those eligible for an employee stock plan but who do not participate should consider how these programs might help their long-term finances.
Take It With You - Employees need to know how portable their stock plan assets are and what restrictions apply so they don't lose out if they leave the company. In stock option plans, for example, only vested options can carry over and employees must typically exercise those options within three months of leaving the company. Knowing the specifics of their plan can help participants identify the assets they actually own, and what they'll retain after they leave.
Become More Informed - To make the most of these benefits, participants should know what their plan offers. Employees who take advantage of educational resources at work can better understand how these plans operate, impact their taxes and fit within their overall investment strategy. Fidelity.com provides a wide variety of online information and resources to see how grants or purchase shares will impact savings.
Through Fidelity Workplace ServicesSM Fidelity Investments provides human resources administration and employee benefits solutions to more than 16 million participants in more than 11,600 retirement, pension, health and welfare, payroll and stock plans as of October 31, 2003.
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.7 trillion, including managed assets of $940.3 billion as of October 31, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.
Company stock is neither a mutual fund nor a diversified or managed investment.
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Recordkeeping services provided by Fidelity Stock Plan Services, LLC
Brokerage services provided by Fidelity Brokerage Services LLC, Member NYSE, SIPC.
100 Summer Street, Boston MA 02109
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