The Golden Parachute Retirement Plan

What is a Golden Parachute when it comes to your retirement?

Many people go sky diving to celebrate birthdays, anniversaries. They hire a company to take them up in a plane on a good weather day, strap them to a qualified jumpmaster or tandem instructor. Maybe they buy a video package with a videographer jumping with them as well. Usually turns out pretty good, lots of memories, no one gets hurt.

But how about when you decide to jump into retirement? Will you have control over whether it is a sunny day? Will it be at high altitude or low? Will you be jumping into a safe landing zone? Could you jump into a hostile landing area because of social or political instability, and the markets are shaken?

Originally a Golden Parachute—was a guaranteed severance package for CEO’s in case of: Early termination for several reasons: Their Company closes or declares bankruptcy, A hostile take over or buyout. Maybe Terminated by their board Or  the executive decides to check out because of disability or other personal circumstances.

So what this did was provide financial guarantees to the executive and their family.  It protected them from sacrificing their career efforts and risk taking only to be financially wiped out, or arrive short of their retirement goals. Possibly leaving them with the inability to start over or enjoy retirement.

So why can’t the small business owner or mid-level executive, or soon to be retiree, do something like this?  Well, Actually, they Should!