Is It Worth Holding Employer Stock?
One thing that often comes up in client conversations is whether to hold employer stock.
It's understandable to want to keep company shares!
Holding employer stock might not be ideal because:
• an employee has a lot riding on the company,
• one stock has greater risk than the overall market, and
• employees are often already rewarded for company stock performance.
Big Takeaways from XYPN Live!
I had the great fortune to attend the XYPN Live last week.
Michael Kitces asked me about my big takeaways.
They were all about mindset:
Stephanie Bogan’s challenge to think bigger
Michael Kitces’ closing keynote on scaling
Adam Cmejla’s perspectives on growth and automation
Do You Have the 3 T’s to Manage Finances Well?
Do you have the 3 T’s to manage finances well?
Those are:
Time
Training
Temperament
Are You Less Behind Than You Think?
Some people feel discouraged with their finances.
However, it’s not all doom and gloom!
Here’s where the “rule” of 72 comes in handy.
A 40 year old with $200,000 saved for retirement who expects to earn an 8% return might have:
$400,000 by age 49,
$800,000 by age 58, and
$1.6 million by age 67.
Could Waiting a Year Cost $140,000?
Many people put off financial planning.
However, optimizing finances early can be impactful!
With an 8% annual return, $500 a month turns into about:
$37,000 in five years,
$91,000 in 20 years,
$745,000 in 30 years,
and $1.75 million in 40 years.
5 Ways to Lower Taxes Besides Donations
5 ways to lower taxable income besides donations:
1. Pre-tax retirement accounts like 401(k), 403(b), and 457
2. Health Savings Account (HSA)
3. Spousal Individual Retirement Account (IRA)
4. Tax loss harvesting
5. Specifying which shares to sell if selling stock
Can Volunteering Save Your Life?
I’ve been hesitant to share this story because I didn’t know how it was going to end.
As I was launching my business, my mom was doing her normal thing - including clothing ministry. Once a week, she'd help home insecure people get clothes.
She wanted to do some more advanced volunteering. Doing so required a physical exam…
Are You Ignoring $900,000?
Is it best practice to ignore Social Security when planning retirement
No!
Social Security benefits are huge!
Assume a household will receive $3,000 per month in after-tax Social Security benefits.
Replacing that income might require a $900,000 portfolio!
Potential Financial Steps for T-Mobile Employees in September
What financial steps might T-Mobile employees take in September?
Select employee stock purchase plan contribution percentage
Book Thanksgiving plans
Begin benefits and insurance review
Replenish emergency fund
Schedule remaining Paid Time Off (PTO)
Buying a Car
I took it as a sign when a few people recently asked me my taken on car buying.
Here are my quick thoughts:
Always know your best alternative.
Negotiate financing as well.
Come prepared.
Take care of yourself physically.
Get a newspaper.
Vacation + Disaster = Adventure
We recently vacationed in Sandpoint, ID!
However, something impacted our plans.
You can actually see the trouble across the bottom of the photo: wildfires.
Someone once said: “Vacation plus disaster equals adventure.” So true!
Never Finance a Toy
One of the best pieces of advice I received came on a boat in Northern Idaho.
Joe and Amber were trying to get Kyle to take out a loan and buy a boat together.
Kyle declined using four words I’ll never forget:
“Never finance a toy.”
Types of Spending
There are essentially four types of spending:
Needs - high on physical and low and psychological benefit
Entertainment - high on psychological and low on physical benefit
Societal - high on both psychological and physical benefit
Addiction - low on both physical and psychological benefit
Of course, these are not mutually exclusive!
My Goal? Help People Reach Financial Independence!
My goal? To help as many people as possible reach financial independence!
If anyone chooses to work, it should be because they want to, not because they have to.
Before launching Scaled Finance, I invested months to develop a complimentary financial independence course.
Since launching, I've settled into a routine of posting on Mondays, Wednesdays, and Fridays. Mondays usually focus on images I create, which I hope you find insightful, inspirational, or both. Wednesdays are generally financial education videos. Fridays are normally polls.
Combining Finances is Like a Dimmer Switch
Combining finances can be hard!
Many people believe it’s either all or nothing.
However, that’s not the case!
Integrating finances is more like a dimmer switch than a binary light switch.
How Are Restricted Stock Units Taxed?
The taxation of Restricted Stock Units (RSUs) is often misunderstood.
This article walks through an RSU example from grant to vest and finally to sale.
It explores the tax withholding at vest as well as the difference between short-term and long-term capital gains.
What Worked in the Past May Not Work in the Future
What worked in the past may not work in the future.
Change is like a current. Standing still takes effort. Making progress takes more.
Fortunately, most of life’s major changes happen every day!
Seek the counsel of those who have gone from where you are to where you want to go.
How Does a Couple Reach Financial Independence?
How does a couple reach financial independence?
The math is relatively straightforward:
Start with total expected expenses.
Subtract any after-tax non-portfolio income.
Multiply the shortfall by 25.
The result is a rough estimate of the portfolio size needed in today’s dollars.
What Financial Steps Might T-Mobile Employees Take in August?
What financial steps T-Mobile employees might take in August?
Back to School
Review financial independence plan
Summer vacations and camps
Submit dependent care reimbursements
What Percent of Workers Max Social Security?
What percent of covered workers earn more than the Social Security maximum?
Only 6%!
It shocked me it was that low.
How about you?
