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    Year-End Planning Checklist for your Equity Compensation

    Year-end financial planning for your stock compensation can be daunting, especially when we are experiencing volatile markets. 2022 was a year where inflation, interest rates and strong market volatility have been dominating headlines. Will this all change for the better in 2023? This is a question we can’t answer, and at the same time, we know markets are efficient and eventually there will be a recovery. Read more

    Restricted Stock Units (RSUs) or Stock Options? Which Choice is Right For You?

    The types of equity grants being offered these days are different than what was offered in the past. Ten or 15 years ago, the vast majority of grants were in the form of stock options. Today, Restricted Stock Units (RSUs) are much more common.

    The Dilemma Around Concentration: When to Sell and Diversify Out Of Company Stock

    The continuous market volatility reminds us about the importance of portfolio diversification. It is one of the fundamental rules of investing not to sell when stock markets are down. At the same time, it is an excellent time to think about concentration of company stock and actions one should take when the time is right.

    What You Need To Know About Rule 10b5-1 And Its Benefits

    A Rule 10b5-1 trading plan is not exclusively for C-level employees anymore. In fact, if you work in biopharma, it is very likely that if you receive a stock option grant, you will have to use a 10b5-1 trading plan in order to be able to trade and sell your company stock. SEC regulations dictate your company’s insider trading policy and consider it a breach of your fiduciary duty if you trade your company stock based on material, nonpublic information.

    2022 IRA Deductibility and Roth Eligibility Chart

    On November 4, 2021, the IRS released Notice 2021-61, announcing cost-of-living adjustments that affect contribution limits for IRAs in 2022. Notably, the amount individuals can contribute to an IRA in 2022 remains unchanged at $6,000.

    The attached table outlines all of the key changes to traditional and Roth IRA limits, eligibility, and deductibility rules for the upcoming year.

    October is National Financial Planning Month... and what yoga taught me about the importance of working with an advisor

    Yoga is an important part of my life. This stress-reducing exercise keeps me mentally focused and balanced. When the pandemic hit, my yoga studio adapted quickly and within a week they were livestreaming classes so that I could easily continue my weekly practice from the comfort of my home.

     

    Selling Restricted Shares with a 10b5-1 Trading Plan

    Because of the nature of their compensation packages, many corporate executives and employees develop concentrated positions in their employer’s stock. Often, these shares are subject to stringent SEC rules that restrict when they can be sold. A 10b5-1 trading plan offers shareholders greater leeway in selling their restricted shares while avoiding accusations of insider trading.

    Outright Sale of a Concentrated Stock Position

    Most owners of concentrated positions understand the risks inherent in continuing to hold their shares. A significant drop in the price of the issue has the potential to inflict irreparable harm on a portfolio. One guaranteed solution to the problem is to sell the stock. But many owners are wary of the tax implications of implementing this simple strategy and are therefore hesitant to take action. Sometimes, however, the simplest option produces the best result. To determine whether an outright sale is an appropriate solution for reducing risk, let’s review the benefits and downside considerations associated with such action.

    Getting Ready To Retire? Check These Financial Tasks Off Your List

    Are you planning to retire within the next year or so? First off—congratulations! Assuming that you have worked hard, saved diligently, invested wisely, and planned well, you have a lot to look forward to.

    As that final day at work approaches, here are a few retirement planning tasks you should be sure to resolve before you head off into the sunset:

    Year-End Financial Planning Checklist: 10 Suggestions to Help You Stay on Track

    Although 2020 has been a year of unexpected changes, one routine has remained consistent: the fourth quarter means it’s time to begin organizing your finances for the new year. To help you get started, here’s a checklist of key topics to think about, including new tax and retirement considerations related to the COVID-19 pandemic.