Simplifying the Equity Compensation Complexities: Keep it, Spend it, or Save it

If you’re wondering how to maximize the value of your incentive stock options (ISOs), non-qualified stock options (NQSOs), restricted stock units (RSUs), or other forms of equity compensation, you’re not alone. After all, there is plenty to think about if you’ve been granted equity compensation. You may dream of how to strike it rich. You may fear you’ll do something wrong and miss out. You might become mired in taxing technicalities, including AMT calculations. All that thinking can backfire if “TMI” (too much information) prevents you from proceeding.

As your retirement date gets closer, it’s important to remain proactive about your financial plan. A retirement plan can help you understand what assets you have available for retirement, where your.

Retirement planning is often summed up into a single question: How much money do I need to retire? Unfortunately, this question leaves many well-intentioned retirees far short of the actual goal. While understanding how much your retirement may cost, it’s just one part of a complete, sound retirement plan. That plan should be the real goal, because it will also tell you how to properly start drawing down assets in retirement. A complete retirement plan...

Traditional retirement planning is grounded in the belief that if you save early and save often, you’ll accumulate enough wealth to retire with the lifestyle that you want. Many people try to achieve this feat by funneling a percentage of their paycheck into a 401(k) plan. Unfortunately, this single strategy might not allow you to generate enough annual savings to reach your retirement savings goal. But there is some good news: there are many other...

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 Most people with a 401(k) plan understand that they will pay ordinary income rates on money withdrawn (assuming they contributed pre-tax, non-Roth 401(k) money). For the most part, this assumption is...