The Numbers Game: Knowing What You Don’t Know about Deferred Compensation

Compounding Change with Shannon Davis

Retirement planning has a way of making capable, thoughtful people feel uncertain. One glance at a benefits sheet filled with numbers and acronyms can create the sense that everyone else understands something you somehow missed. The truth is, most people aren’t behind or uninformed—they’re just trying to make sense of options that were never explained in plain language.

In this episode of Compounding Change, host Shannon Davis puts her sister Jenna Stoliker, founder of the Center for Conscious Leadership, in the role of “host” for an honest, curiosity-driven conversation about deferred compensation and the many retirement plans people encounter through work. We’re talking about things like what deferred compensation actually means, why plans like 401(k)s, 403(b)s, 401(a)s, and 457(b)s exist, and how employer-sponsored plans can look similar on paper while functioning very differently in real life.

The episode also addresses the emotional side of money, acknowledging how difficult saving can feel when life is expensive and unpredictable.It’s important to know that retirement isn’t a cliff. Rather, it’s a runway you build decision by decision. With the right guidance and a clearer understanding of your options, confidence replaces confusion, and progress becomes possible.

Key takeaways

“-Deferred compensation” simply means money you earn now and choose to receive later

-Not all employer-sponsored deferred comp plans work the same way

-Qualified plans (401k, 403b, 457b) differ significantly from non-qualified plans

-457(b) plans offer unique flexibility for public employees, including no early withdrawal penalty after separation

-Roth options flip the tax equation and can add long-term flexibility

-Small savings habits can reveal surprising opportunities when cash flow becomes visible

-Catch-up contributions after age 50 can meaningfully change retirement outcomes

-Liquidity often provides more flexibility than paying off every debt

T-he goal isn’t perfection—it’s progress with the right support

-A trusted advisor helps turn complexity into confidence

The Compounding Change Podcast is brought to you by Jenna Stoliker at https://jennastoliker.com/

Chapters:

00:58 – Why retirement feels confusing

03:03 – What deferred compensation really means

06:31 – When “employer-sponsored” isn’t a 401(k)

09:32 – The retirement plan family (401k, 403b, 457b)

11:38 – When saving feels out of reach

19:17–Proactive steps to course correct

22:53 – Retirement strategies closer to retirement

Helpful Links:

Jenna Stoliker: https://jennastoliker.com/

Shannon Davis: https://www.daviscompoundingchange.com/

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Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions.

Securities offered through Cambridge Investment Research, Inc., a registered

Broker/Dealer, Member FINRA/SIPC.

Investment Advisory Services are offered through Retirement Plan Advisors, LLC, a Federally Registered Investment Adviser. Cambridge Investment Research and Retirement Planning Advisors are not related to DavisCompoundingChange.com or this podcast.

Please note that investment involves risk, and no statements made in this recording are indicative of future performance.

The Compounding Change Podcast is brought to you by Jenna Stoliker at https://jennastoliker.com/