The recent drop in the markets has hit many companies hard, especially in the energy sector. For bp Group and Senior Leaders, who often hold much of their wealth in company shares, these ups and downs can raise worries about long-term financial plans.
Here’s a real story we’re seeing right now: A bp leader planned to retire at the end of this year. In February, their bp shares were worth about £4.67 each. By April 7, just two months later, the price fell to £3.55. This means nearly a quarter of their retirement fund disappeared in weeks.
Markets are always changing. Even the best plans can be upset quickly.
Understanding your risk
As a Group Leader, a big part of your pay comes in bp shares. When markets go up, having lots of shares feels great. But when markets fall, it can cause financial and stress problems.
Ask yourself:
- How much of your total wealth is in bp shares?
- Does this match your long-term financial goals?
- Do you have a plan for what to do with shares when they vest?
- Do you understand the tax rules for your shares?
Looking past short-term changes
Market ups and downs, while worrying, are normal when investing for the long term. The key for leaders is to separate today’s market swings from your long-term financial plan.
If you’re planning to retire in the next 5-10 years, market drops matter even more. Moving from growing wealth to spending it needs careful planning, especially when much of your wealth is in company shares.
All investments go up and down, but owning mostly one company’s shares adds another risk: you could lose everything. While it’s very unlikely bp would go under, surprising things do happen.
Steps to take now
- Know what you own: Understand exactly what shares you have, when options can be used, and how they fit into your overall financial picture.
- Spread your wealth around: While you may feel loyal to bp, smart financial planning suggests not having too much in any one company, no matter how much you believe in it.
- Create a share plan: Rather than making quick decisions when markets drop, set up a regular plan for handling your vested shares based on your long-term goals.
- Think about your family: Many Group Leaders tell us their partners aren’t involved in financial decisions. Now might be a good time to make sure your family understands your overall financial situation.
- Picture your future: Busy bp Group Leaders often don’t take time to think about what they want life to look like in 5 to 10 years. Ask yourself:
- What would a perfect day in retirement look like?
- How can I make sure I have enough financial security without working?
- What activities or hobbies do I want to enjoy when I have more free time?
- What do I want to leave behind for my family and community?
Moving forward
Market drops create worry, but they also give you a chance to review and improve your long-term financial plan. The bp leaders who handle these times best are those with clear plans that balance company loyalty with smart spreading of risk.
If you’re worried about how market changes might affect you, or want to create a stronger financial plan, contact us to arrange a chat. We’ve helped many bp leaders through similar challenges.
If you know someone at bp who might find this helpful, please share this article with them. Sometimes a different view can help turn uncertainty into clarity.
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