What Happens If My Employer Goes Bankrupt?

September 02, 2020
Share |

When a large portion of your wealth is tied to your employer, a company bankruptcy is devastating. Even if you think your company is financially sound today, but you continue having your wealth tied to that employer in the future, your decisions in the present day can have profound impacts if the financial health of your employer faulters. This is especially true today…

History in the equity markets is littered with once great titans who’ve fallen from grace after enjoying many years of market dominance. For the executives at these companies, this can have a profound personal financial impact after what may have been many years of financial security. In these situations, the impacts can be broad, both financial and emotional.

As corporate bankruptcies accelerate this year, it’s a strong reminder that these events do happen and your time to prepare for this is not just when it is happening but years before.

So, to help, we will be sharing a short series of topics over the next few weeks on how an employer bankruptcy could impact your stock benefits, your deferred compensation and your 401(k). We will also be sharing insights on how we advise our busy executive clients with what you should be thinking about now, while your employer is strong, to hedge against an uncertain future.

If there is a little something in the back of your brain saying “what if my company goes bankrupt, how can I protect myself?”, come back next week and we will have some great ideas for you to consider.

If you can’t wait until then and would prefer to talk to a member of our team, just head over to https://www.spurstone.com/schedule-call

 

  • Tim Golas
    Partner, Spurstone