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How You Can Invest Your ExxonMobil Savings Plan

by , , | Updated: Dec 5, 2023 | Published: Apr 20, 2023 | ExxonMobil, Insights

how you can invest your exxonmobil savings plan

How You Can Invest Your ExxonMobil Savings Plan

A Guide To The Different Options Available Within Your Voya Savings Plan

 

Most 401(k) plans have a wide array of investment options available to participants. Choosing the correct combination of investment options to create a diversified portfolio that will help reach your specific goals is often a very important decision.

We find that it looks very different for everyone depending on risk appetite, time horizon and other factors like cash flow needs. Many individuals are left feeling uninformed or out of touch with what their most efficient portfolio may look like. There are a multitude of investment combinations available, and we hope to provide some insight regarding how to best maximize your retirement.

As an ExxonMobil employee, you have the ability to invest in seven different Investment options through your Voya Savings Plan. We have summarized these options below. Understand how they function and if they are worth utilizing in your portfolio in order to reach your retirement goals.

 

Exxonmobil investment options diagram The Woodlands, TX

  • ExxonMobil Stock: This option lets plan participants directly invest a portion of their portfolio in ExxonMobil stock.  Participants receive dividends (which are automatically reinvested) and hold voting rights, just as they would if owning the stock in a personal investment account.  It’s important to note that a high concentration to a singular stock can lead to a lack of diversification and inherently higher risk.
  • Equity Units: This Index Fund intends to provide large cap U.S. equity market exposure and returns that approximate those of the S&P 500.  It is comprised of a diversified portfolio of publicly traded U.S. common stocks.
  • Extended Market Units: This Index Fund attempts to closely match the characteristics and returns of the Dow Jones Total Market Index.  It’s composed of a broader array of stocks than those in the S&P 500 and Equity Units option.  The fund primarily holds publicly traded small cap and mid cap U.S. common stocks.
  • International Equity Units: Another Index Fund, this option provides access to the remaining global stock market.  This fund invests in roughly 3,500 international equity securities and holds no U.S. stock exposure. These international securities are comprised of 22 developed market countries and closely approximate the total rate of return of the MSCI World Index (excluding the U.S.).
  • Bond Units: This option invests in publicly traded, investment grade U.S. Bonds, with an average maturity that is longer than that of the investments held in the Common Asset Fund.  The units represent interests in an Index Fund aiming to mirror the Bloomberg Barclays U.S. Aggregate Bond Index.
  • Balanced Fund Units: This Index Fund is designed to generate income and growth for investors by diversifying in the various funds listed above. The Fund’s allocation to each security is as follows: 35% Equity Units, 15% Extended Market Units, 25% International Units, and 25% Bond Units.  While it is called a “Balanced Fund,” it is not tailored to the needs of each ExxonMobil employee. We recommend meeting with a financial planner to determine the most appropriate investment allocation that fits your unique situation.
  • Common Assets: This Fund is managed by an ExxonMobil subsidiary and holds short to medium-term fixed income securities. It invests in high-quality fixed income securities such as U.S. government issued Series I and Series EE Savings Bonds. A part of this Fund is used to invest in loans to participants. At the end of each quarter, any earnings this account generates are credited to participants’ Savings Plan Accounts. These earnings are then reinvested in Common Assets.

As mentioned in the Balanced Fund Unit description, the correct assortment of investments varies depending on each Exxon employee’s specific situation. It is crucial to fully understand these investment options and the purposes of each, in order to select the investment mix that matches your risk tolerance.

To make the most of your ExxonMobil Savings Plan and ensure you are on track to meet your retirement goals, it is best to meet with a qualified and knowledgeable financial planner who is well versed on the ins and outs of the ExxonMobil Savings Plan at Voya. Please refer to our article on maximizing your ExxonMobil retirement benefits for more information.

Need Some Help?

If you’d like some help from a CPA or CERTIFIED FINANCIAL PLANNER (CFP®) professional regarding this strategy and how it applies to you, the Rhame & Gorrell Wealth Management team is here to help.

Our experienced Wealth Managers can help you review your financial and tax situation inside the Savings Plan and come up with a custom tax optimization strategy going forward.

Feel free to contact us at (832) 789-1100, [email protected], or click the button below to ask a question or schedule your complimentary strategy session today.

 

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JEFFREY G RHAME, CFP®

Partner & Senior Wealth Manager
As a Wealth Manager, Kyle McClain serves on the Investment Committee, interfaces with clients, and coordinates ongoing financial planning initiatives. He also facilitates many marketing and business development functions for the firm.

Prior to joining RG Wealth, Kyle spent time with Fidelity Institutional Asset Management as an Investment Consultant and with Merrill Lynch as a Wealth Advisor. He graduated Magna Cum Laude with a dual degree in Finance and Economics from the University of Alabama. He also completed his CERTIFIED FINANCIAL PLANNER™ program at Texas A&M University, holds the CFP® designation, and has completed his Certified Investment Management Analyst (CIMA®) designation from the Yale School of Management.


DAVID HUNTER, CFA, M.E.C.

Chief Investment Officer
As Chief Investment Officer, David is a key contributor to Rhame & Gorrell Wealth Management’s investment research and due diligence process. David is a member of the Investment Committee, managing client portfolios and assisting the Wealth Managers by gathering and analyzing data, developing financial planning recommendations, and providing clients a clearer picture of their financial health by understanding their needs through retirement. He has also achieved the prestigious Chartered Financial Analyst® (CFA®) designation.

David graduated Cum Laude with Honors from the University of Alabama with a double major undergraduate degree in finance and economics. He also received a master’s degree in Applied Economics through the school’s dual degree program.

David moved from Memphis to The Woodlands in 2018. While in Memphis, David worked for Morgan Stanley Wealth Management as a financial analyst researching investment solutions and producing presentations to best service clients under his team’s management. David’s Morgan Stanley team made the jump to the RIA space as its own investment firm and David joined them on this new opportunity to continue his role as the company’s financial analyst. In addition to his previous role, David managed the firm’s investment and data management technology along with managing the company’s trading operations.

Recently David has been invited to participate on a panel at the Texas RIA Summit in Dallas, where he will be discussing “Trends and Market Forecast: How are investors mitigating risk from global forces while protecting and growing portfolios for their Clients?”


JEFFREY G RHAME, CFP®

Managing Director & Senior Wealth Manager

Jeff Rhame is one of the founders and President of Rhame & Gorrell Wealth Management. Jeff’s vision for starting Rhame & Gorrell was to deliver wealth management services and investment strategies typically available at the highest levels of wealth. Today, clients benefit from these sophisticated financial services, targeted to meet their unique needs.

Jeff leads a team of investment specialists that develop asset allocation strategies for high-net worth families. They seek out the most appropriate investment ingredients and then construct portfolios to meet our clients’ goals from income generation and capital preservation to tax-efficiency and growth.

Jeff has been honored with Top Professional’s Five Star Wealth Managers, recognized by The Wall Street Journal and Texas Monthly, for the last 10 years in a row and twice as Best of The Woodlands – Top Financial Advisors and Planners by Woodlands Online. For over 15 years, Jeff served as an adjunct professor for the University of Houston and Lone Star College Systems, teaching classes on Investment Management and Estate & Insurance Planning. As a member of the Financial Planning Association, he has also taught, and continues to teach, on & off-site retirement workshops for the employees of many Fortune 500 companies, such as ExxonMobil, Chevron.

Jeff is proudly serving as a member of three organizations: Memorial Hermann Hospital’s Advisory Board in The Woodlands, The Nelson Rusche College of Business Executive Advisory Board at Stephen F. Austin State University, and as the Vice-Chairman of the Tall Timbers District of The Boy Scouts of America.

Jeff received a degree in Accounting from Stephen F. Austin State University, and through post graduate work at The University of Houston, achieved his status as a CERTIFIED FINANCIAL PLANNER™ practitioner.

 

 

IMPORTANT DISCLOSURES:

Rhame & Gorrell Wealth Management is not affiliated with or endorsed by ExxonMobil

Rhame & Gorrell Wealth Management, LLC (“RGWM”) is an SEC registered investment adviser with its principal place of business in the State of Texas. Registration as an investment adviser is not an endorsement by securities regulators and does not imply that RGWM has attained a certain level of skill, training, or ability.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own CPA or tax professional before engaging in any transaction.  The effectiveness of any of the strategies described will depend on your individual situation and should not be construed as personalized investment advice.

For additional information about RGWM, including fees and services, send for our Firm Disclosure Brochures as set forth on Form ADV Part 2A and Part 3 by contacting the Firm directly. You can also access our Firm Brochures at www.adviserinfo.sec.gov. Please read the disclosure brochures carefully before you invest or send money.

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