There are ways that you can access the value of your concentrated stock positions and avoid the huge tax bill.
In this episode, Malcolm Ethridge sits down with Anthony LoBalbo, regional manager with Schwab Bank, as they discuss the securities backed line of credit. Malcolm and Anthony discuss how it works and how you could be taking advantage of it yourself.
Anthony discusses:
Situations when having an S Block makes sense
The application process and how long it takes to have the line open and available
How amount extended through the line is determined
Interesting ways that this line of credit has been used in the past
Taxes are something that we will never be able to fully avoid, so it is imperative that we understand how they are going to impact all aspects of our finances, and prepare to manage them to pay as little as possible.
In this episode, Malcolm Ethridge is joined by Megan Gorman, founder and managing partner of Chequers Financial, as they discuss the tax implications of managing your employer stock and options. Megan helps educate you on the things your employer might not, so you can be prepared to make the best decisions for your situation.
Megan discusses:
Her passion for working with taxes and stock options
Advice for how individuals can see the bigger picture when it comes to taxes
How the 10b5-1 fits into tax planning with employer stock options
Megan is the founding partner of Chequers Financial Management, a fee-only planning firm that specializes in high net worth and ultra-high net worth families in San Francisco, California. Chequers focuses on establishing long term relationships with families and helps them navigate through tax, estate, liquidity and investment planning. Megan heads the firm’s family office services practice.
Oftentimes, there is a significant gap between the information that companies who offer stock based comp to their employees think they are providing versus the amount of information those employees feel that they receive. And this information gap can make it hard to know which end is up.
In this episode, Malcolm Ethridge is joined with Bruce Brumberg, co-founder and editor in chief of MyStockOptions.com, as they discuss some of the financial planning rules of thumb when it comes to stock options. Malcolm and Bruce go deep on some of the more technical factors that plan participants should consider before making decisions regarding their equity comp.
Bruce discusses:
Setting goals to manage equity comp
The importance of learning what happens when you leave your company and telling your family members
Exceptions to the standard rule of waiting as long as possible to exercise your stock options
Bruce Brumberg has devoted most of his professional career to making complex legal and tax concepts understandable to people who do not enjoy reading the securities laws or the Internal Revenue Code. In myStockOptions.com, Bruce created the premier source of web-based educational content and tools on stock compensation (stock options, restricted stock, and employee stock purchase plans) for plan participants, financial advisors, and companies. The creation and management of the website combine Bruce’s in-depth understanding of stock plans with his proven ability to present and explain complex legal, financial, human-resource, and compensation topics using innovative techniques.
Your equity compensation can have an outsized impact on your overall portfolio, so it is key to set your strategy ahead of time and find tools that will help you stick to your plan to diversify.
In this episode, Malcolm Ethridge sits down with Bill Dillhoefer, CEO of Net Worth Strategies Inc, as they discuss the importance of diversification when managing employer stock and options. Bill introduces his platform, StockOpter.com, and how it helps financial planning professionals make decisions on behalf of clients who are paid in equity.
Bill Dillhoefer discusses:
The information gap between employers and their employees who are paid in equity, and why it exists
The importance of reviewing and understanding the grant document
Forfeiture value and why you need to understand it
How concentration risk impacts your employer stocks and options
How to set a strategy to diversify a concentrated equity position
The president and CEO of Net Worth Strategies, Bill DIllhoefer has been with the firm since 2000 and became its CEO in January 2018. His firm provides professional equity compensation risk analysis and tax planning tools. Bill is responsible for all business and product development activities for their industry acclaimed “StockOpter” platforms. His goal is to help advisors and their clients make timely, informed, and profitable company stock and option decisions.
Navigating the world of equity compensation can be intimidating, but it doesn’t have to. As a participant in an equity compensation plan, a good place to start is by getting acquainted with your plan document and its various terms and conditions.
In this episode, Malcolm Ethridge is joined by Amy Reback, head of Charles Schwab stock plan services, as they discuss the basics of equity compensation. Amy shares rules of thumb and other helpful information that every plan participant needs to know about their equity compensation.
Amy discusses:
The recent trend of more companies offering stock plans to their employees
The employer versus the employee when it comes to stock equity
How the employee stock purchase plans works and how it differs from other stock plans
Recommendations stock participants should be following
As Vice President and General Manager of Stock Plan Services, Amy is personally committed to helping ensure client satisfaction. Charles Schwab’s goal is to help stock plan sponsors generate employee pride about being invested in their company. By providing flexible support for employee stock purchase plans and equity awards, the team at Schwab is dedicated to meeting the needs of our plans sponsor clients by offering a range of plan options.
Have you ever wondered why you make the financial decisions you make? Or what has influenced your relationship with money?
In this episode, Malcolm Ethridge is joined by Dr. Preston Cherry, president elect of the Financial Therapy Association and founder of Concurrent Financial planning , as they unpack the key differences between financial therapy and financial planning. The pair talk through ways to better understand your money mindset and how your thoughts and beliefs impact the way you interact with your money.
In this episode, we discuss:
What financial therapy is and how it works
The training required to help financial therapists better understand their clients
How to discover your money mindset
Ways financial therapists help clients move past a negative mindset
How financial stress can impact your professional life
And more!
Tune in to hear the benefits of understanding your money mindset.
The COVID-19 Pandemic has had a lot of impacts on how people interact with their money.
Will these changes stick around forever?
In this episode, Malcolm Ethridge is joined with Liz Weston, personal finance expert and senior writer for NerdWallet, as they talk about some of the major influences the COVID-19 pandemic has had on the personal finance landscape. Malcolm and Liz discuss the ways in which financial behaviors have either been changed or created, and whether they will stick around after the pandemic is over.
Liz discusses:
The enhanced child tax credit, whether it will stick around and how you should plan with it
How people’s relationships with life insurance has been impacted by the pandemic
Changes in the way people are handling retirement over the last 18 months
Money shame and how it has influenced decision making throughout the pandemic
Liz is an award-winning personal finance columnist and author of several books about money, including the best-seller “Your Credit Score.” At NerdWallet, Liz helps provide clarity for all of life’s financial decisions. Liz’s weekly syndicated Q&A column, which appears in the Los Angeles Times and other papers, gives straight, clear answers to the money problems Americans face.
What else exists that you could be investing your dollars into, other than traditional investments?
How about a franchise, real-estate or even cryptocurrency?
In this episode, Malcolm Ethridge is joined by Patrick Hagen, national director of business development with Strata Trust. The duo discuss alternative investments through self-directed IRAs along with the advantages of using this investment tool and what it really means to be self-directed.
Patrick discusses:
What a self-directed IRA is and how it works
What you can invest in when you use a self-directed IRA
How a self-directed IRA is funded and how long it takes
Patrick serves as the National Director of Business Development for STRATA Trust Company, a self-directed IRA custodian that specializes in holding alternative assets for IRA investors. Clients use Strata Trust to invest their IRA funds into ‘alternative’ assets like private equity, real estate, precious metals and private debt. Patrick has been in the self-directed IRA space for over 16 years. He has been the top producer with each firm that he’s worked for.
Did you know that 70% of families lose their wealth by the second generation, and 90% lose wealth by the third?
There are actionable steps you could be taking to avoid this from happening.
In this episode, Malcolm Ethridge sits down with Elsa W. Smith, founder of the Law Offices of Elsa W. Smith, as they discuss the role that proper estate planning plays in maintaining generational wealth. The duo discuss the importance of planning now and keeping your documents up to date.
Elsa discusses:
What led her to create the Law Offices of Elsa W. Smith and how she found a passion for estate planning
The differences between a will and a trust, and why you might want to consider having both
What happens in the probate process and how you can avoid it
How to make sure your trust is properly funded
Bringing multiple generations into the estate planning conversation
Elsa W. Smith is the founder and principal of the Law Offices of Elsa W. Smith, LLC. Elsa focuses her practice on wills and estate planning and startup business consulting. She counsels individuals, families and business owners in the creation of wills, trusts, financial powers of attorney and advance directives. In addition, Elsa assists small and emerging businesses with contract drafting and review, corporate organization, drafting business policies, expansion and growth consultations, and business succession planning.
When it comes to your 401(k) plan, you want to keep your hands off for as long as possible. The longer those funds can compound and grow, the better.
In this episode, Malcolm Ethridge speaks about his recent blog that left a few people uneasy about the message he was getting across. Malcolm discusses why he believes that you should not be borrowing from your 401(k) and what could happen if you do.
In this episode, we discuss:
The unintended consequences of 401(k) plan loans and early distributions
The Cares Act and its impact on 401(k) plan distributions
The growing trends around 401(k) loans and debt consolidation
Alternative ideas to access capital instead of tapping into your 401(k)
And more!
Tune in to discover how tapping into your 401(k) plan could hurt you in the long run and what you should be doing instead!
