Well, the company I work for was acquired yesterday. Our name and the website change on Monday. We'll be getting new computers too--instead of a regular PC with the ability to log into a virtual desktop from a device at home, I'll get a laptop and will need to lug it home or elsewhere if I want to work other than onsite.
The new company has different health insurance and different 401(k) plans, so there will be a lot of administratrivia and paperwork changing those. I can roll the current 401(k) over to the new one or roll it to an IRA. They're also closing our cash balance pension plan and issuing us a check for our accrued balance--I have the same options for that as well.
The new company has all employees paying a share for their health insurance and their vision and dental benefits cost a bit more. They're adjusting my pay to make me whole on that.
The company I've been working for is a smallish (22 employees) family-owned company. The new company is actually an entity formed by a private equity group that has been on a campaign buying up independent RIAs (Registered Investment Advisors)--I believe we are the 7th acquisition since 2020. Whereas I know, to at least some extent, all of the other employees at my current firm, I doubt I'll ever know all the other employees with the new firm.
Since the old company was small, our COO was in essence our HR department and we had an employee, not a lawyer, who handled SEC compliance. The new department has an official HR department and a team of lawyers to handle compliance issues. The merger gives us a better answer when clients or prospects ask about the firm president's succession plan (not that he is planning on retiring anytime soon). We'll also get better service from the asset custodians, since advisors are assigned a level of service that is based on AUM (assets under management).
The new firm is headquartered in Boston, so we will all be taking a trip there in a month. Boston is one of my favorite cities so it will be nice to see it again (for however much time we have to see things during a 3-day work retreat).
To start, there are supposed to be fairly few changes in our day-to-day experience since the main goal is to keep servicing our current clients in the way they have been accustomed to. But we'll see what happens over time. I can't deny that the change makes me nervous. It could be a good thing, but perhaps not. And while I've definitely felt that I have had influence over certain things like the choice of tax-planning software with my current firm, I don't expect to have that kind of influence with the new firm (EXCEPT that the plan is to move the aquiring firm over to the tax planning software that we use). But who knows if I'll have that kind of influence again?
One good thing is that the owners of the old company gave each of us employees a very nice bonus upon the close yesterday. When I saw the net amount in my checking account this morning, I paid off my highest-interest debt in full and paid down some of the next highest debt. Total debt (including mortgage is now down to about $53k--and before learning of the bonus, my year-end goal had been to get it to $60k). That accounts for about half of the bonus, and the other half I will be putting into savings in my brokerage account to have more of a buffer for future expenses.
In other news, yesterday the gas company moved my meter from indoors to outdoors. They may have cracked my foundation in doing so. I wouldn't have noticed, but I recently became Facebook friends wiht the former owner, who asked me about the crack when I posted a picture online yesterday. I have no idea whether that was there before or not. So there will be that to deal with.
August 17th, 2024 at 07:49 pm 1723924187
In my experience, people with leadership skills rise no matter how big the pool. I wouldn’t rule out having influence in a bigger pond yet.
I would liberate money into an IRA you have control over rather than a company managed 401k. I work with Fidelity and I am extremely happy with the service and options.
I live in Boston - I hope you have fun while you are here.
August 17th, 2024 at 08:57 pm 1723928270
The new 401(k) is actually with Fidelity, so that will be the first time I myself have funds over there--but that is one of the places we custody assets so I am familiar with them.
There's only one other CPA on the planning team already (plus the other CPA/planner from my existing firm), so that should help with influence at least on the tax planning side.
August 18th, 2024 at 03:44 pm 1723995896
August 25th, 2024 at 07:01 pm 1724612509
August 29th, 2024 at 05:18 am 1724908721
August 31st, 2024 at 03:25 pm 1725117947
There is one benefit from the old company that I am losing--a Limited Purpose Flexible Spending Account, which can only be used for vision and dental expenses, and is used when you also have a Health Savings Account. I did go buy a new pair of glasses but I wasn't able to get the cost to equal the amount I'd set aside, and the remainder isn't enough to cover a new pair, so I'm going to end up losing about $150 of money I had set aside.