Find Financial Advisors for Chevron Employees & Executives: Q&A Insights from the Experts

We start by listening to you describe your current situation. You have had a unique career path and worked hard for your benefits package at Chevron. Our familiarity with the tax code, investment environment, and your situation allow us to suggest steps that will maximize your benefits as you approach a transition or retirement. 

For example, did you know that if you contribute after-tax dollars to your 401k plan, those investments can be separated into a Roth IRA when you roll your Chevron 401k into an outside IRA? Roth IRA investment gains are exempt from Federal taxation under the current law making them one of the most tax-efficient types of investment account.

Strategies to maximize your employee benefits differ from person to person. While the 401k and health plan may be well understood, there are nuances to using these tools.

The questions we ask at our first meeting are no different what you would hear at a barbeque: What is your role at Chevron? Where are you from initially? What are your hobbies? Tell me about your family.

If you are interested in what a financial planner does, we are happy to explain how we help people: by collecting information on your situation, we forecast your spending and portfolio returns over long periods of time. This analysis uses state-of-the-art techniques and best-practice portfolio construction.

We can build you a basic financial plan without collecting sensitive information like birthdays and account numbers. Of course, we need some general information such as your age, marital status, income levels, spending levels, 401k balances, and anticipated retirement dates. Pulling this information into one report starts a very interesting discussion about when you can retire from Chevron and how much you can spend.

Financial advisers seem completely unnecessary. After all, with index funds, discount brokers, and free internet news sites, investing and making money should be easy. For those who are financial professionals, this may be true, but even for the pros, investing is never easy.

Most of us use doctors when we are sick, auto mechanics when we have car trouble, lawyers when we have legal problems, or accountants when we have complex tax questions. Even though we recognize these professionals as subject experts, the financial professional is the one expert many try to live without. This can lead to expensive mistakes caused by lost opportunities or outright losses from bad investments.

In contrast, the wealthy almost always have an adviser, or in some cases, two advisers with different firms. For these investors, it is not a question of getting the lowest possible fee but finding a trustworthy person and firm that meets their needs. The adviser is paid to guide the wealthy investor through the myriad choices into something suitable for their unique family situation. A good adviser helps the investor avoid big mistakes by utilizing best practices in planning and portfolio management.

I recommend Chevron employees ask these questions, grouped by category:

1. Experience – what is the age and work experience of the adviser?

·        How many total years has the adviser worked in the industry?

·        How many investment cycles has the adviser managed through?

·        Can the adviser relate to the needs of you, the client?

 2. Expertise – Does this investment professional have the right skill set?

·        Superior understanding of the characteristics, behavior, and risk of different investments.

·        Extensive understanding of retirement planning, the investment process, asset allocation, investment selection, and the practical steps of managing a portfolio.

·        Sensitivity to the financial, regulatory, tax, and legal implications of investment decisions.

 3. Credentials – what education and certifications does the adviser have that confirm an individual’s knowledge and expertise?

·        Education – college and graduate degrees with concentrations in finance, accounting, or economics. Top schools are a plus.

·        Professional designations such as the Chartered Financial Analyst (CFA), Certified Financial Planner (CFP) or Certified Investment Management Analyst (CIMA).

4. Financial planning and the investment process

·        Is a retirement plan prepared as part of the investment process?

·        Does the adviser provide estate and tax education with regard to accounts and general issues?

·        Are the advisory and investment fees fully disclosed?

·        Is the adviser a fiduciary?

5. Service level – how much contact should you expect with this adviser?

·        Number of meetings per year: annual, quarterly, monthly.

·        Responsiveness and ability to meet special requests.

·        Assistance with managing concentrated equity holdings.