Company-owned stock and stock options are assets that may generate significant wealth. They may also pose one of the largest risk to future financial security. This risk reward tradeoff is inherent to investing and yet it can be heightened as one’s concentrated stock position increases. In truth, the value of […]
Wealth Accumulation
Five Steps to Managing Concentrated Equity in Company Stock and Stock Options
Concentrated equity, also known as owning a large position in one company stock, can exist in many forms. One form of concentrated equity may be the result of working for an employer who has issued stock ownership via restricted stock and stock options. These types of stock ownership and stock […]
Using After-Tax Value to Evaluate Liquidation Priority of Concentrated Equity
Concentrated equity can be defined as owning a substantial position in one company’s stock. For such concentrated positions, one risk for a single owner may be a lack of diversification*. Or said another way, having too many eggs in one basket. However, concentration risk may not be a bad thing. In fact, […]
Is a Non-Qualified Deferred Compensation Plan a Good Deal?
It’s common for employees that earn considerable income to be offered a non-qualified deferred compensation plan (NQDC). Simply put, an NQDC plan allows a plan participant to defer receiving a portion of income in the year it is earned, to later receive this income in the future. The deferral of […]
Comparing the Solo(k) and SEP-IRA for the Self-Employed
For those who are self-employed, the question of how to save for retirement is a frequent one. Fortunately, the answer isn’t all that difficult. Establishing a retirement plan as a self-employed individual can be easy. In fact, it can be easy AND more advantageous than a typical employer-sponsored 401(k) plan. […]
What Is Net Unrealized Appreciation?
If you own company stock inside your 401(k) plan, you may want to know about net unrealized appreciation. Net unrealized appreciation, or NUA, is a financial planning technique that may allow you to obtain preferential tax treatment on a portion of your 401(k) assets. Most people with a 401(k) plan […]
