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Reflections From a Canoe Trip on the Little Danube

How a Sunday canoe outing with family members reinforced the importance of financial planning and discipline.

I grew up in a small town on the Csepel Island, just 15 miles south of Budapest, Hungary. This island is one of many along the Danube River. Growing up in Hungary, we spent our summers by the beaches of the smaller portion of the Danube that was excellent for swimming and boating. During my trip home this summer, my sister decided we should revisit this beautiful area. So she, my 14-year old nephew, and I went on a canoe trip.

Summer Reading Series 3 of 3 - Strategies for Concentrated Stock

Donating Concentrated Stock to a Private Foundation
Presented by Beata Dragovics

Holders of concentrated stock positions typically understand the complexities and risks associated with owning these shares; however, they sometimes struggle to determine the best course of action for reducing those risks. For those with philanthropic intent, funding a private foundation with their concentrated stock positions may be worth considering, as this can provide benefits both to the shareholder and to charitable organizations.

Summer Reading Series 2 of 3 - Strategies for Concentrated Stock

Concentrated Positions and Donor-Advised Funds
Presented by Beata Dragovics

Holders of concentrated stock positions have several options for mitigating the risk associated with owning these shares. Those who are charitably inclined may view a donor-advised fund as a particularly attractive solution because of its ease, convenience, and overall benefits.

Summer Reading Series 1 of 3 - Strategies for Concentrated Stock

Selling a Concentrated Position Using a Charitable Remainder Trust
Presented by Beata Dragovics

Multiple strategies are available to help owners of concentrated stock positions mitigate risk and minimize taxes, but a charitable remainder trust (CRT) could do those things and more. 

Will My Company be Acquired or Go Public?

Originally published at MassBioHQ on October 24, 2018

New Rules Allow For 5-Year Tax Deferral on Stock Option and RSU Exercise for Privately Held Companies

Many of my clients who work for privately held life sciences companies receive non-qualified stock options (NQSOs) and restricted stock units (RSUs) as part of their compensation packages. These are great tools for building wealth.

However, as with all forms of equity compensation, you need to be aware of the tax ramifications. The good news when it comes to NQSOs and RSUs is that, thanks to last year’s Tax Cuts & Jobs Act, you can now defer taxes on the exercise of these investments for up to five years.

4 Financial Planning Tips for Managing Concentrated Stock Positions

Over the past ten years, pharma and biotechnology companies have increased their reliance on performance-based awards and RSUs. As a result, employees from mid management to C-suite levels often end up owning highly concentrated stock positions. 

If you own a concentrated stock position, consider these tips to help manage risk and ensure you remain on track to meet your financial goals:

Exercising Your ISOs in the New Tax Environment

Biotechnology and pharma stocks had a great run this summer, so now may be a good time to look at your incentive stock options (ISOs) and how recent changes in the calculation of the Alternative Minimum Tax (AMT) may benefit you.

Let’s start by examining what happens when you exercise an ISO.

Understanding How Equity Compensation Fits Within Your Overall Financial Plan

The role and makeup of equity compensation programs within the life sciences industry continues to evolve. Stock grants and stock options remain key components within many employers’ compensation packages. The primary challenge for many life sciences professionals is how to integrate equity compensation into their overall financial plan.

Read on to learn about a few tips that may help you make smart decisions.

Which Is The Best Choice For You—Restricted Stock or Incentive Stock Options?

If you are starting a new position within the life sciences industry, the best time to negotiate your compensation package is before you sign on the dotted line. In most cases, your package will include some form of equity compensation, such as restricted stock or incentive stock options (ISOs).

One frequent question I hear from my clients is whether it’s better to ask for restricted stock grants or ISOs. While fewer companies are willing to offer a choice, if you do have the option of negotiating your equity compensation package, the answer to this question will depend on your financial goals, tolerance for risk, and investment time horizon.

How Recent Tax Law Changes May Affect Your Equity Compensation Benefits

The U.S. tax code is always evolving, and the Tax Cuts and Jobs Act of 2017 made significant changes that will affect anyone who earns equity compensation. Read more for a few highlights from this new law.