If you’re lucky enough to work for one of the many tech companies that offer multiple ways to save money, you may be wondering which programs to prioritize. Microsoft employees, for instance, have the good fortune of having access to a pre-tax/Roth 401(k), after-tax 401(k), Employee Stock Purchase Plan (ESPP) and Health Savings Account (HSA)….
Read More
Creating stock grants that base payouts for executive employees on more than just their continued employment has become the new norm for a growing number of companies. These special stock grants are known as performance shares, and nowadays tech workers who reach executive status are more likely to receive grants of performance share units (PSUs)…
Read More
You may or may not have heard of a Mega Backdoor Roth, but they are becoming increasingly common, especially in the tech world. Often confused with a Backdoor Roth IRA contribution or a Roth 401(k) contribution, this strategy, while sharing similarities with both, is unique for a few reasons. STANDARD 401(K) REVIEW First, let’s review…
Read More
While in the middle of your career and possibly raising a family—likely in your 30s, 40s or 50s—it can be challenging to plan for the day full-time employment is an option rather than a requirement. Nevertheless, it is important to keep in mind that the decisions you make during your pre-retirement years directly affect when…
Read More
For opportunistic investors, employer stock purchase plans (ESPPs) become more attractive in a bear market. This is because stocks are bought at an additional “discount” on top of the 15% price cut that is inherently built into the plan. ESPPs are employer-sponsored investment plans that allow employees to purchase company stock at a discounted price—typically…
Read More
With the tech-heavy Nasdaq index down more than 25% so far this year, many tech employees worry that they are seeing a replay of the dot-com boom and bust of the late 1990s and early 2000s. And although those fears may be well-founded (there are certainly several similarities between now and then), since the financial…
Read More
On December 20th, 2021, Cerner put out a news release with the simple title Oracle Buys Cerner. As a former Kansas City tech employee who has gone through an acquisition, I feel you. Anxiety runs high. Speculation becomes rampant! It can run the gamut from “we’re all getting canned tomorrow!” to “we’re saved!” Rather than…
Read More
If there is one thing that workers of all job types across every industry can agree on, it is that they could always benefit from having more money in their paycheck. It does not matter how much a person currently makes or the amount of it they actually spend; there is always room for more….
Read More
Stock options are no longer just for the few executives at the very top of the org chart. Many publicly traded companies now make them available to non-executive staff. And while splitting compensation between cash and stock has some real benefits, turning those stock option certificates into real dollars takes some careful planning. It is…
Read More
For many executives and senior level managers, compensation comes in the form of a set salary, a cash bonus (or two), and some form of equity ownership in the company. For executives and senior managers of publicly traded companies, equity ownership typically comes in the form of company stock. Publicly traded companies offer senior leaders…
Read More
According to a study by Rutgers Institute, 24% of male employees hold employer stock options while only 17% of female employees do. Looking at it from a dollars and cents perspective, in 2018, the average value of a stock option for a male employee wa…
Read More
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,
Read More
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,
Read More
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.
Read More© 2024 All rights reserved
Recent Comments