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 […]
Wealth Accumulation
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 may not be that that difficult at all. In fact, being self employed may mean that you have more retirement planning opportunities than you otherwise would have access too. This […]
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 […]
Strategically Liquidating Concentrated Stock from a Tax Perspective
One rule of thumb regarding the ownership of company stock suggests that 10-15% of your total net worth may be a suitable allocation. 10-15% allows an employee or shareholder to participate in the upside of the company should the stock appreciate and, perhaps more importantly, be somewhat insulated from the […]
