The Mega Backdoor Roth is a powerful new feature in many employer 401(k) plans that can turbocharge your savings. In this guide, we will walk you through everything you need to know about how the Mega Backdoor Roth works, why you should consider it, and some of the rules you need to know—including contribution limits for 2021. What is a... Read More
In this post, we’ll outline everything you need to know about diversifying a concentrated stock position. We’ll cover what is too concentrated, the benefits of portfolio diversification (and the drawbacks), plus provide some tips on managing taxes. In our conversations with Tech professionals, we’ve learned that most know they should diversify their portfolio. But they don’t know how to start.... Read More
In this article, we will review everything you need to know about your Employee Stock Purchase Plan (ESPP), including how it works, how it is taxed, and how to incorporate it into your overall wealth building strategy. And, if you’re wondering how your ESPP compares to other employer plans, check out our article on that topic. If I offer to... Read More
Restricted Stock Units (RSUs) are a popular form of equity compensation at many tech companies like Intel, Apple, Microsoft, or Amazon. They can, along with other types of equity compensation, add up to a significant portion of one’s income each year and become a substantial part of one’s net worth over time. So, it’s crucial to understand how they... Read More
In this article, we will tell you everything you need to know about how Restricted Stock Units (RSUs) are taxed. Plus, we'll cover four strategies to consider with your RSU compensation to reduce your tax bill. If you're a Tech employee, we also recommend you check out our Guide to RSUs. Restricted Stock Units (RSUs) are a popular type of compensation for those employed in the... Read More
A clever person once said it’s “difficult to make predictions, especially about the future.” This is true with most things, and it's undoubtedly true with investing. However, despite the unpredictability of the future, there comes a time when we must place our bets and choose a direction—Ideally, one that tips the odds in our favor. 409(a) Nonqualified Deferred Compensation Plans... Read More
This post is part two of ‘How Much Company Stock Should I Hold?’ In this article, we dive deeper into two areas: If you hold company stock, what form of equity compensation is the best to own, and How to maintain your desired allocation over time What Type of Company Stock Should I Hold? Let’s assume that you wish to... Read More
Chances are if you work in the technology industry, part of your compensation will include company stock. We’ve written about various forms of equity compensation before (RSU’s here and here, ESPPs here and here, Stock Options here) but today we want to address a question that anyone investing in their company ultimately has to answer: How much company stock should... Read More
Employee Stock Purchase Plans (ESPPs) are a valuable form of equity compensation and an attractive benefit of working for many tech companies. And this form of compensation is becoming more popular, from startups to blue-chip firms, as companies realize that the plans are a cost-effective way to reward, motivate, and retain employees. But just because your company offers an ESPP... Read More
Many of our clients work in the technology industry, so we're familiar with all different types of equity compensation plans. We've recently written about two popular forms of equity compensation plans: ESPP and RSUs (here and here). In this post, we are going to look at another popular form of equity compensation—the stock option plan. Specifically, Incentive stock options or... Read More