As a Nissan employee, being offered a Voluntary Separation Package (VSP) may feel like a giant fork in the road. The decision shouldn’t be one entered into lightly or without careful consideration. So, how do Nissan employees determine their best route forward?
At First Family Wealth, we specialize in helping Nissan employees, especially those in transitionary periods, make informed decisions about their money and future.
If you’ve received a VSP offer from Nissan, here are the top items you should consider as part of your decision.
Making the Most of Your Nissan VSP Package
Because of how the process works, a Voluntary Separation Package can involve substantial amounts of money and indirect financial benefits, such as health insurance. That makes a VSP a unique opportunity to solidify your financial footing, but it requires careful planning.
Whether you choose to take the package or not, you should fully understand and evaluate the severance pay, benefits continuation, and tax implications, among other facets of the VSP. Over the years, we have helped dozens of Nissan employees through this consequential decision-making process, supplying them with information and analysis to make the best decision for their particular situation.
Determining the Right Time to Retire
Taking a VSP does not necessarily mean the end of your working days, even if it may be the end of your career at Nissan.
The reality is that there are many different kinds of people working for Nissan, and they may have different saving and spending habits, financial goals, and lifestyles. This confluence of factors all plays a part in shaping your decision. Some employees may be better positioned to go immediately into retirement, while others may need or want to continue working after leaving Nissan.
Before making your final decision, our firm can provide tailored financial projections to determine if early retirement is feasible or if transitioning into another career path is a better fit for your financial goals.
Accessing Retirement Funds Without Penalties
If you are under 59½, accessing retirement funds early can be tricky. It is common for retirement accounts like Roth IRAs and Traditional IRAs to penalize those who take these early withdrawals, typically associated with the 59½ age threshold.
But if you’re under 59½, there are options available to access retirement funds. Not only do we educate Nissan employees on penalty-free withdrawal strategies, such as Substantially Equal Periodic Payments (SEPP) and Roth conversion ladders, but we also help build a comprehensive financial plan that optimizes your income in retirement.
Together, we can determine the best path to obtain income, leverage penalty-free withdrawal strategies where necessary, and adapt as you progress through retirement as needed.
Optimizing Your Nissan 401(k) and Pension Plan
Your Nissan 401(k) and pension plan may be the biggest financial assets for you to draw on in retirement, so making decisions about them will be pivotal.
Whether you choose to roll over your 401(k) or strategize pension withdrawals, we provide expert advice on preserving and growing your retirement assets. Our personalized approach ensures that employees make the most of these benefits, securing their long-term financial stability.
Maximizing Social Security Benefits
Understanding when to claim Social Security is an important decision for all Americans, not just Nissan employees.
We would all like to have the largest possible paycheck from the Social Security Administration, but sometimes taking Social Security sooner may make more sense than waiting for the maximum benefit. We help all of our clients develop claiming strategies that align with their unique financial situation, ensuring they take benefits when it is most advantageous for them.
Understanding Retiree Health Insurance Options
Healthcare coverage is a top concern for employees considering a VSP. And the farther you are from turning 65 and obtaining Medicare coverage, the more expensive this decision can be.
We assist Nissan employees in navigating retiree health insurance options, including COBRA, private insurance, and Medicare planning, to ensure uninterrupted and cost-effective healthcare coverage.
Safeguarding Investments from Market Volatility
If you’re considering a VSP from Nissan, there is a good chance you have been with the company for years if not decades. After spending all that time and energy to build a strong financial foundation, the possibility of losing large amounts in investments because of market volatility can be scary.
As part of a comprehensive financial plan, our firm builds investment strategies tailored to individual situations, balancing risk appetite with growth potential, so clients can confidently move forward without fear of market instability.
Partnering for a Secure Future
At First Family Wealth, we understand that accepting a VSP package is a big deal. Our mission is to empower Nissan employees with expert financial guidance so they can embrace their future and retirement with a sense of confidence and optimism.
Let us help you make the most of this opportunity, ensuring your financial well-being and lifestyle aspirations align for a bright and prosperous future.
Retirement Consultation for Nissan Employees
If you need further assistance determining if the VSP is right for you and your family, contact First Family Wealth at (615) 615-0361 or by email at dchamblee@firstfamilywealth.com.
About the Author: Daren Chamblee, CFP®
A financial advisor based in Murfreesboro, Tennessee, Daren Chamblee has nearly 15 years of experience in the industry serving clients through financial and retirement planning. A CERTIFIED FINANCIAL PLANNER™, Daren specializes in working with employees of Nissan North America, and he currently has more than 200 clients who are current or retired Nissan employees, giving him unique insight into the financial and retirement challenges they face. You can schedule an initial consultation with Daren by clicking here.
Investment Advisory Services are offered through First Advisors National. Financial planning services are offered through First Family Wealth. First Family Wealth and First Advisors National are not endorsed, retained, or affiliated with Nissan.
