Why throw away money in badly crafterd Executive Salary Packages?

How to Repurpose Cash Flow for Executives & other High Salaried Workers in a Covid Economy    Why throw away money in badly crafterd Executive Salary Packages?    Here is an example - leaving the bottom $40,000 of earnings be and focusing on the next $60,000:  Marginal rate of income tax is around 24% - which is $16,400 straight down the Rat Hole. Add to that over 15% in respect of FICA - say $9,000 disappearing from an executive's wage packet plus another $9,000 paid by Employers in FICA.  Add up all that lost money wasted - Close to $34,400.    Can you think of better things to do with those dollars?  A starting point could certainly be to put it all in to an Executive Retirement plan - such as a 401k plan. That could pull an additional $5,000 out the hat as a reward for a maximum personal contribution by the worker of $19,500 .    At a time when Employers retrograde financial management thinking (inspired by Accountants) is creating further waves in the Covid Economy - cutting back on or abandoning Employer Matching Contributions to workers funding of their personal 401k - there could be a shot in the arm for Executive Retirement Programs, as there is sufficient  cash left over after allocation to Employee Personal 401k Contributions to be able also to  fully maximum fund a Matching contribution by Employers - without it costing them a cent.

Here is an example – leaving the bottom $40,000 of earnings be and focusing on the next $60,000:

Marginal rate of income tax is around 24% – which is $16,400 straight down the Rat Hole. Add to that over 15% in respect of FICA – say $9,000 disappearing from wage packets plus another $9,000 paid by Employers in FICA.

Can you add up all that lost money wasted? Close to $34,400.

Can you think of better things to do with those dollars?

A starting point could certainly be to put it all in to an Executive Retirement plan – such as a 401k plan. That could pull an additional $5,000 out the hat as a reward for a maximum personal contribution by the worker ($19,500).

At a time when Employers retrograde financial management – cutting back on or abandoning Employer Matching Contributions to workers funding of their personal 401k – there could be a shot in the arm for Executive Retirement Programs, as there is sufficient cash left over to fully maximum fund a Matching contribution by Employers – without it cost them a cent.

How to Repurpose Cash Flow for Executives & other High Salaried Workers in a Covid Economy

Why throw away money in badly crafterd Executive Salary Packages?

Here is an example – leaving the bottom $40,000 of earnings be and focusing on the next $60,000:

Marginal rate of income tax is around 24% – which is $16,400 straight down the Rat Hole. Add to that over 15% in respect of FICA – say $9,000 disappearing from an executive’s wage packet plus another $9,000 paid by Employers in FICA.

Add up all that lost money wasted – Close to $34,400.

Can you think of better things to do with those dollars?

A starting point could certainly be to put it all in to an Executive Retirement plan – such as a 401k plan. That could pull an additional $5,000 out the hat as a reward for a maximum personal contribution by the worker of $19,500 .

At a time when Employers retrograde financial management thinking (inspired by Accountants) is creating further waves in the Covid Economy – cutting back on or abandoning Employer Matching Contributions to workers funding of their personal 401k – there could be a shot in the arm for Executive Retirement Programs, as there is sufficient cash left over after allocation to Employee Personal 401k Contributions to be able also to fully maximum fund a Matching contribution by Employers – without it costing them a cent.