SETTING YOUR PATH TOWARDS FINANCIAL SECURITY
Key employees of companies such as executives may have additional types of retirement plan to help them maintain their lifestyles in retirement.
Supplemental Executive Retirement Plan (SERP)
This plan is a type of deferred compensation plan to retain and reward key executives. They are nonqualified and the company is able to deduct the benefits when they are paid. SERPs are customizable to executive’s needs.
Employee Ownership Stock Option Plan (ESOP)
An ESOP is a qualified defined-contribution employee benefit plan that allows employees to invest in the company they work for by owning stocks. Stocks can be purchased directly, given as a bonus, obtained through stock options, or through a profit-sharing plan.