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4 Investing Mistakes In The EMSP

What lessons can one learn following the ExxonMobil Savings Plan (EMSP) for over 40 years?

I began as a participant back when it was the “Thrift Fund.” During the latter part of my ExxonMobil career, I was involved in its design and administration.

More recently, as a financial advisor, I’ve assisted employees and retirees with managing or taking distributions from their EMSP accounts.

Four decades have given me a chance to observe successes as well as a few common mistakes. I’d like to share four mistakes I’ve seen. All are preventable with a bit of effort and education.

Mistake #: Inattention

Not everyone enjoys investing or planning for retirement. I get that. But not focusing on a benefit like the EMSP is, frankly, irresponsible. I’ve seen cases in which an employee has put his or her account on autopilot and simply not looked back.

One should not over-manage the account. It’s a great fund for accumulating dollars and letting the power of compounding take hold. But occasionally plan modifications are introduced, laws or IRS regulations change, or personal circumstances suggest a change in approach.

Take time to read the Summary Plan Description, call an E&Y Financial Fitness advisor, or engage a knowledgeable financial advisor. These are a few ways to educate yourself on the EMSP. It can be a very valuable benefit. You might be surprised how many folks have more than $1M in their account. But that doesn’t happen without some effort by the participant.

Mistake #2: Over-concentration

Some participants, put off by choices they don’t understand, decide to invest a large percentage of their contributions in one or two of the options. Often, it is ExxonMobil stock. Or, the risk-averse participant opts to keep the bulk of his or her funds in Common Assets. In retrospect, it’s easy to see why a failure to diversify is a mistake. Unfortunately, hindsight doesn’t undo the mistakes of the past.

Mistake #3: Failure to ask for help

ExxonMobil employees, as a general rule, are smart, self-confident, and resourceful. That’s part of the attraction of working at the company. But one of the toughest challenges each of us ever has is to recognize the limitations of our knowledge. It’s hard to know what we don’t know.

I remember the case of an ExxonMobil HR executive who retired with many low-cost shares of XOM in his account. Sometime later, I ran into him at someone else’s retirement party and asked him what he had done with his NUA stock. A blank look came across his face, he laughed nervously, and said “What’s NUA stock?” He didn’t realize he may have missed out on a good opportunity. He’d never bothered to ask anyone to explain NUA stock to him.

There are similar opportunities in other corners of the ExxonMobil benefits world. Discovering what you don’t know isn’t easy, but an inquisitive mind, attention to what others may be doing, and curiosity about how things work all help. Being humble enough to acknowledge that you may not know it all can be a profitable exercise.

Mistake #4: Investing too conservatively

It is not surprising that participants in the EMSP look at their account as distinct from the rest of their wealth. It is a stand-alone plan, with its own rules and investment options. But failing to consider it in the context of one’s entire portfolio can set you up to invest too conservatively.

We often find ExxonMobil employees retiring with lump sum pension benefits exceeding their Savings Plan balances. It’s hard to generalize. Much depends on contribution levels and investment choices. But the point is that after a full career, your XOM pension can be a significant benefit.

A good way to understand the significance of that from an investing perspective is to envision a pie chart of your retirement assets. At retirement, perhaps half your assets will be in your Savings Plan. Another roughly half may be in the form of a lump sum settlement of your pension benefit.

Conservative investors with a decades-long investment horizon may wish to split portfolios roughly 50% equities and 50% fixed income.

Your pension benefit could be considered a kind of fixed income—its value won’t fluctuate based on stock market volatility. How about your EMSP balance? If a significant portion is invested in Bond Units or Common Assets, your allocation to stocks (or equities) will be reduced, and you could be more exposed to fixed income than you want.

Add in Social Security benefits and the equity in your home and you may find yourself more heavily weighted to fixed income than you imagined.

My point here is not to encourage you to invest aggressively, but rather, to take stock of how you’re invested in total. You may be happy with your overall allocation. But do so knowingly, rather than by default.


It’s tempting to put off thinking about your EMSP account while the Company suspends the match. My recommendation is the opposite: make the time to assess your current investment allocation and contribution level, and think through how your EMSP account fits into your retirement plans. And if you want help in doing that, we’d be glad to help. Let’s talk.

Cerity Partners LLC (“Cerity Partners”) is an SEC-registered investment adviser with offices in California, Colorado, Florida, Illinois, Massachusetts, Michigan, New York, Ohio and Texas. Registration of an Investment Advisor does not imply any level of skill or training. There is no guarantee that the views and opinions expressed will come to pass.  For information pertaining to the registration status of Cerity Partners, please contact us or refer to the Investment Adviser Public Disclosure website ( For additional information about Cerity Partners, including fees, conflicts of interest, and services, send for our disclosure statement as set forth on Form CRS and ADV Part 2 using the contact information herein. Please read the disclosure statement carefully before you invest or send money. Nothing contained herein shall constitute an offer to sell or solicitation of an offer to buy any security. You should not construe the information contained herein as personalized investment, tax, or legal advice.  Material in this publication is original or from published sources and is believed to be accurate. The information presented is subject to change without notice and is deemed reliable but is not guaranteed. Readers are cautioned to consult their own tax and investment professionals with regard to their specific situations. Cerity Partners is not endorsed by or affiliated with Exxon Mobil Corp.

Meet the Author

Doug Garrison


Doug is a Partner based in the Houston office and a member of the firm’s Wealth Management practice. He is responsible for delivering investment and planning services to clients. His specialty is assisting clients who are approaching retirement to evaluate the options they have as they prepare for the next chapter in their lives.

Prior to joining Cerity Partners, Doug was a Senior Wealth Advisor at Investec Wealth Strategies. Previously, Doug was Manager, Global Benefits Design, at ExxonMobil. He was responsible for the design of corporate benefit programs including pension, 401(k) plan, medical, and insurance plans. He helped design and implement a corporate health strategies program (“Partners in Health”) and a financial literacy program (“Financial Fitness Program”).

Doug earned a BA in psychology from Yale University and received his MBA in industrial relations from the Wharton School of the University of Pennsylvania. He is a CERTIFIED FINANCIAL PLANNER™ professional.

Doug is an active volunteer at The Woodlands Methodist Church and Jubilee Prison Ministry. He and his wife are also members of the National Leadership Council of World Vision USA.

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