As a fiduciary financial advisor in Memphis, Holland Capital helps long-time FedEx employees decide how a pension benefit and a 401(k) will work together once the paycheck stops. We work with Memphis clients by video and phone, and meet in person by appointment at Clark Tower on Poplar Avenue.
A pension benefit. A 401(k). One retirement income.
FedEx is headquartered in Memphis and is the area’s largest employer. About 17% of Memphis households receive retirement income, and about 28% receive Social Security. Among homes lived in by their owners, about 43% have no mortgage.
Some long-time FedEx employees have a pension benefit as well as a 401(k). The two work differently. The pension benefit follows the terms of the FedEx pension plan. The 401(k) is a separate account balance. The planning question is how to use each one. Before anyone recommends a payout choice, it helps to know whether that advisor is a fiduciary and how they are paid.
Start with What Your Plan Offers
Your FedEx pension materials show what you have earned and the payment options available to you. We work from those choices rather than assuming every FedEx pension benefit works the same way.
The options for a surviving spouse are part of that review.
Monthly Payment or Lump Sum
If your plan offers both, we compare them side by side. A monthly payment gives steady income and, depending on the option you pick, may continue to a spouse. A lump sum gives you control, but then your savings have to last as long as you do.
Our guide to choosing between a pension lump sum or annuity walks through the tradeoffs.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Using the 401(k) Around the Pension
Once the pension amount is known, the 401(k) fills the gap between that income and what you spend. We set a yearly withdrawal amount and decide when Social Security should start.
Tennessee does not tax pension income or 401(k) withdrawals. Federal tax still applies, so we plan your withholding as well.
Keeping Your Savings Invested for Their Job
Our investment management invests the 401(k) or IRA for the years it has to cover, with the pension counted as part of your income.
How We Work with Clients in Memphis
Holland Capital Management is an independent registered investment adviser and a fiduciary. M. Chad Holland, CFA, CFP® works directly with clients and is responsible for the planning and advice.
Bring your most recent pension benefit statement, your 401(k) statement, your Social Security statement and your spouse’s retirement details if you are married.
Your written plan shows the payout choice we recommend, the monthly income it produces and how much comes from savings each year.
The first conversation is free. If there is work worth doing after that, we will define the scope and cost before you decide whether to move forward.
Our offices are in Charlotte, North Carolina and Winter Park, Florida. We work with clients in Memphis primarily by video or phone. When an in-person meeting makes sense, we meet by appointment at the Regus center in Clark Tower, 5100 Poplar Avenue.
For clients whose investments we manage, accounts are held directly at Charles Schwab in the client’s own name. Holland Capital manages the investments but does not take custody of client assets. If a client ever needs in-person assistance from Schwab, the closest branch is in Germantown at 7926 Wolf River Boulevard.
We work with clients throughout Tennessee. You can see the other Tennessee communities we serve here.
Our what we do page explains how a planning engagement works.
RETIREMENT ENGINEERING™
The Order Matters
Five retirement decisions and why timing matters.
Frequently Asked Questions
Are You a Fee-Only Financial Advisor in Memphis?
We offer financial planning on a fixed-fee basis, subject to the scope of the engagement. Investment management is offered on a fee basis, generally calculated as a percentage of the assets we manage. When providing financial planning and investment advisory services, we act as a fiduciary.
Why Use a Fiduciary Financial Advisor for a Pension Decision?
Holland Capital acts as a fiduciary when providing financial planning and investment advice. For a FedEx retiree, that means we compare the monthly payment and the lump sum by what each one does for your household.
If you take a lump sum and roll it into an account we manage, we earn more, and we say so before you choose.
Can Memphis Clients Meet with Us in Person?
Yes. We meet at the Regus office in Clark Tower, 5100 Poplar Avenue, by appointment.
Between meetings, we can talk by phone or video.
Photo: Trevor Birchett / Wikimedia Commons / CC BY-SA 4.0, cropped.
