Your Mayo Clinic Benefits & Career: Financial Planning for Staff and Executives

Do you work at the Mayo Clinic? Get the resources you need and expert insights from financial professionals who specialize in helping Mayo Clinic employees make the most of their compensation package and benefits.

Whether you’re a new Mayo Clinic staff member or you’ve moved up the ranks into a management or executive leadership role over a multi-year career, it’s important to make smart money moves with your income and employee benefits. For example:

✅ Do you know the right moves to make to get the greatest value from the Mayo Clinic benefits available to you?

✅If you’re thinking about leaving Mayo Clinic for another job or planning to retire from the company in a few years, are you taking the right steps today to ensure you will receive all of the compensation and benefits that you’ve earned?

Get the Most Value from Your Mayo Clinic Benefits and Compensation Package

Throughout the year, Mayo Clinic provides its staff and executives with updates about their benefits ranging from health insurance and health savings plans to retirement plans. While the company offers many useful resources and access to knowledgeable staff who can assist with questions, you’ll also find financial professionals not affiliated with the Mayo Clinic who specialize in helping Mayo Clinic employees make the most of their income and benefits.

Whether you work in the Mayo Clinic headquarters in Rochester, Minnesota, another facility around the country, or remotely from home, you may have questions about your compensation package and benefits better suited for a financial professional who can offer unbiased advice and guidance.

For example, sensitive topics like discussing the steps you should take before quitting your job at Mayo Clinic to work elsewhere or deciding when you should plan to retire are all conversations that may be more comfortable with a trusted financial advisor.

💡 In the Q&A below, you’ll gain insights from financial advisors who work with Mayo Clinic employees to help them make smart decisions to get the most value from their compensation and benefits, reduce their money stress, and prepare for a comfortable retirement.

🙋‍♀️ Do you have questions not yet answered? Use the form below to submit questions anonymously and watch this article for updates with answers to your questions. You can also reach out to the financial advisors below to set up an introductory call or contact them with your questions by email.

This page is organized into sections to help you quickly find the information you need and get answers to your questions:

1. Q&A: Financial Planning Tips for Mayo Clinic Employees & Executives
2. Get Answers to Your Questions About Your Mayo Clinic Benefits and Career
3. Browse Related Articles

Get to Know:

↗️ Hunter Kelly (Ponte Vedra, Florida) | ↗️ Derek Delaney (Owatonna, Minnesota)

Q&A: Financial Planning Tips for Mayo Clinic Employees & Executives

Answers to Employee Questions with Hunter Kelly, CFP®

Hunter Kelly is a financial advisor based in Ponte Vedra Beach, Florida, who specializes in offering financial planning services to Mayo Clinic employees. Hunter helps his clients get the most value from their Mayo Clinic benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Mayo Clinic employees save for their retirement, how do you help them make the most of their employee benefits?

Hunter: I help Mayo Clinic staff review their employee benefits, maximize 403b/457b benefits, and determine the best options for them.

Q: When you first speak with a Mayo Clinic employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Hunter: How long have you been working at Mayo Clinic? What does your income look like when you retire? Will someone depend on your pension benefits? How are you reducing your income from a tax standpoint?

Q: Is there a particular benefit available to Mayo Clinic employees you feel isn’t as well utilized or understood by employees as it should be?

Hunter: The pension plan versus the lump sum option. Employees default to the pension payout, but often times, I find it’s better for an employee to do a lump sum from a tax and investment standpoint.

Q: Beyond Mayo Clinic employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?

Hunter: They are offered a pension, and the physicians are offered both a 401k/403b and a 457b, which allows them to double up on pretax retirement savings. They are also offered a Health Savings Account (HSA) and disability insurance.

Q: For Mayo Clinic employees thinking about leaving the company to accept a job elsewhere, what actions do you recommend they take before resigning and shortly thereafter?

Hunter: Understanding what your pension plan options are. Know how to access other retirement plans as well.

Q: For Mayo Clinic employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Hunter: Mayo Clinic employees should understand the implications of each pension payout not only from an income perspective but also from a tax perspective. Many of them will be heavily weighted in pretax dollars, so taking a pension may hurt them from a total income perspective than taking the lump sum and dragging those distributions out longer or doing Roth conversions.

Q: For Mayo Clinic employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Hunter: Do they understand the impact of taxes and longevity risk in each pension plan option? Do they know how to reduce Required Minimum Distributions (RMDs)? If they aren’t sure how much they should take out of their investments each year or unsure of how to effectively pass down money to their kids and avoid estate taxes.

Get to Know Hunter Kelly, Financial Advisor for Mayo Clinic Employees:

View Hunter’s profile page on Wealthtender or visit his website to learn more.

Q: What are some of the unique financial planning challenges you commonly see among your clients who are Mayo Clinic employees and how do you help them overcome these obstacles?

Hunter: Being heavily weighted in pretax dollars since they were avoiding taxes in high-income earning years. Using Roth conversion strategies, donor-advised funds, and Qualified Charitable Distributions (QCDs) are some ways that we can help reduce their lifetime tax bill when taking distributions from those accounts.

Q: What questions do you recommend Mayo Clinic employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Hunter: Run Mayo Clinic Pension analysis. Do you understand deferred compensation plans? Are you well-versed in Roth conversion strategies?

Q: Is there anything that comes up frequently in your initial meeting with Mayo Clinic employees that surprises you?

Hunter: Many Mayo Clinic employees do not understand their pension options.

Q: For highly compensated Mayo Clinic employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Hunter: The ability for the employees to contribute to both the 457b and 401k, which, as of 2024, can give them $46,000 (or more if over 50) in income deductions.

Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Mayo Clinic when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Hunter: When I was able to help two clients who are Mayo Clinic employees decide on their pension options.

For the first client, we determined that the lump sum was the best option. We turned around and did a Roth conversion strategy for a number of years, which has saved them tens of thousands of dollars each year.

The other client needed to protect his spouse, so we chose the joint lifetime pension payout and helped them better manage the 403b account they had with Mayo. Pensions are not common anymore, but for those that do have them, it is a crucial decision to make when retiring.

Answers to Employee Questions with Derek Delaney, CFP®, ChFC®, EA

Derek Delaney is a financial advisor based in Owatonna, Minnesota who specializes in offering financial planning services to Mayo Clinic employees. Derek helps his clients get the most value from their Mayo Clinic benefits and compensation package so they can enjoy life and feel confident about their financial future.

Q: As a financial advisor with experience helping Mayo Clinic employees save for their retirement, how do you help them make the most of their employee benefits?

Derek: Mayo Clinic offers excellent benefits. When I work with employees, I help them understand and utilize the appropriate benefits given their unique financial situation. It could be a mid-career physician optimizing his 403(b) tax allocation or a pre-retiree utilizing the Mayo retiree medical premiums benefit.

Q: When you first speak with a Mayo Clinic employee, what questions do you like to ask to better understand their unique circumstances and determine how you can best help them achieve their goals?

Derek: The initial conversation I have with employees is called a Discovery Conversation. The first question I ask during this conversation is, “What was money like growing up?” Often, our relationship with money can be traced back to our childhood. Understanding that gives me a better idea of the “why” behind their financial motivations.

Q: Is there a particular benefit available to Mayo Clinic employees you feel isn’t as well utilized or understood by employees as it should be?

Derek: One of Mayo Clinic employees’ best opportunities is using the pre-Medicare retiree medical health insurance premium offering. If retired employees qualify, they can obtain high-quality health insurance before Medicare starts. In some cases, they could even become eligible for subsidized premiums.

Q: Beyond Mayo Clinic employee benefits for retirement savings, are there other types of benefits offered by the company that you find valuable to discuss with your clients?

Derek: I’ve had the privilege of helping employees prepare for retirement across a spectrum of different employers. The Mayo Clinic 403(b) investment options are some of the best. It allows their employees at any life stage to allocate their retirement nest egg properly.

Q: For Mayo Clinic employees approaching retirement age, how do you recommend they prepare to make the transition from living off their salary to relying upon other sources of income?

Derek: In preparing for retirement, I always recommend three specific planning tasks to complete before retirement. First, a Benchmark Retirement Plan needs to be completed. This plan outlines the future desired income, expenses, and asset accumulation or decumulation projections. Next, a short and long-term tax strategy must be applied to that Benchmark Retirement Plan. In many cases, tax planning can provide 6 to 7 figures in tax savings and net legacy generation. Finally, the investment portfolio can be optimized based on that benchmark retirement plan and tax strategy. Retirement becomes stress-free when those three aspects are in place and working in alignment.

Q: For Mayo Clinic employees who have managed their finances on their own to this point, what would you suggest they consider to help them decide if they should begin working with a financial advisor at this stage in their lives?

Derek: Does a financial advisor bring enough value to their financial life to make hiring and paying one worth it? No two financial advisors are the same. Hiring one should be seen as an investment where you should expect a return (quantitatively or qualitatively) on that decision. Often, proactive retirement planning, investment management, tax planning, and estate management can be areas of a pre-retirees life where significant value can be derived by hiring a financial professional.

Get to Know Derek Delaney, Financial Advisor for Mayo Clinic Employees:

View Derek’s profile page on Wealthtender or visit his website to learn more.

Q: What questions do you recommend Mayo Clinic employees ask financial advisors they’re considering hiring to help them decide if they’re a good fit?

Derek:

• “What are your qualifications and credentials?” You want to make sure you’re working with a qualified planner.
• “What services do you offer and how do you deliver them?” You want to ensure you’re working with a financial planner, not just a salesperson.
• “Will you have a Fiduciary Duty to me, and can you put it in writing?” A fiduciary is a term that is thrown around a lot. A real Fiduciary can put it in writing.
• “Will others stand to gain from the financial advice you give me?” Understanding who else is interested in the relationship can help uncover undisclosed conflicts of interest.

Q: Is there anything that comes up frequently in your initial meeting with Mayo Clinic employees that surprises you?

Derek: Recently, the question of whether advancements in technology (ex: AI) will be a good or bad thing for their position in the long run.

Q: For highly compensated Mayo Clinic employees and executives, are there any special benefits you believe it’s important to take into consideration when preparing their financial plan?

Derek: Tax planning is always a big concern and an area these types of employees are interested in optimizing. As of this writing, Mayo Clinic employees cannot utilize the Mega Backdoor Roth strategy. So, finding other tax-smart retirement savings resources becomes a significant priority.

Q: Is there a particularly memorable experience or a moment you recall with a client who worked at Mayo Clinic when you realized they have unique opportunities and circumstances when it comes to their financial planning needs?

Derek: The first thought that comes to mind is seeing a Mayo Clinic employee receiving a matching 403(b) contribution into their Roth 403(b). With the passing of the SECURE Act 2.0 in December 2022, employers can now make their matching retirement account contributions into Roth accounts. However, many employers still choose not to. It was great to see that the Mayo Clinic does. It provides another unique tool in the tax planning process.

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